Ground-Up Construction Loans for Real Estate Investors

A ground-up construction loan is short-term financing for building a property from an empty lot, or for tearing down and rebuilding what is there. Unlike a loan on a finished property, the money is released in draws as each stage of the work is completed and inspected, and the lender reviews the plans, permits, budget, timeline and builder before closing. Ours run 12 to 18 months, start from 9.75%, cover the land plus up to 100% of construction costs for qualifying projects, and take about three to four weeks from first call to funding.

Investors use these loans when building costs clearly less than the finished property will sell for, on infill lots in cities, in growing suburbs, and for small multifamily projects. The loan is repaid when the finished property sells, or refinanced into a long-term loan if the investor decides to keep it as a rental.

United Funding provides bridge loans and construction financing for investors pursuing ground-up projects, covering up to 100% of construction costs.

You may see this called a hard money construction loan or a construction bridge loan. Either way, it is short-term private money secured by the project, with approval driven by the plans, the budget and the exit rather than your income.

The entire process takes as little as three to four weeks from start to finish.

Bridge loans typically carry 12 to 18 month terms, designed for repayment upon the sale of the property rather than a decades-long amortization you will never reach.

That structure keeps your capital working and lets you move to the next site as soon as this one completes.