Ground-Up Construction Loans
Financing to break ground and build, structured around your draw schedule instead of a one-size-fits-all timeline. Fund a custom home, a spec build, a small subdivision, or a ground-up multifamily or commercial project, with interest-only payments during construction and a clear path to a permanent loan once it’s finished.
- Qualify on the project’s cost, value, and your plan – streamlined documentation
- Up to 85% loan-to-cost and up to 75% of after-completion value
- Interest-only during construction · rates from 9.5%
- Custom homes, spec builds, ground-up multifamily & commercial
- One-time-close and two-time-close options · LLCs & builders welcome
- Tell us about your projectLand, plans, budget, and your build or exit strategy.
- Get a same-day term sheetWe size the loan around total cost, value, and your draw schedule.
- Close and start buildingFirst draw funds fast, then draws release as work is completed.
Ground-Up Construction Loans – Key Facts (2026)
- What it is: Short-term, interest-only financing to build a property from the ground up, funded in stages as construction milestones are completed.
- Best for: Custom home builds, spec home construction, small subdivisions, and ground-up multifamily or commercial projects.
- Leverage: Up to 85% of total project cost (loan-to-cost) and up to 75% of the completed, after-construction value.
- Structure: Interest-only during a 12-24 month construction term, rates from 9.5%, with draws released as inspected work is completed.
- Exit: Sell the finished property, or convert to a long-term loan – one-time-close and two-time-close options are both available.
- Lender: CambridgeHomeLoan.com – direct lender since 1998, NMLS #1826020. LLCs, builders & foreign nationals OK.
Eligible projects
Construction projects we finance
From a single custom home to a multi-building ground-up development, we finance business-purpose construction projects across the country:
Custom Single-Family Homes
Ground-up construction for a custom home on land you own or are acquiring.Spec & Builder Portfolios
Multiple spec homes or a small subdivision, financed individually or as a builder line.Ground-Up Multifamily
New apartment buildings and townhome communities, from small infill sites to larger builds.Ground-Up Commercial & Mixed-Use
New office, retail, and mixed-use buildings built from a graded lot to a finished shell.Construction financing
What is a ground-up construction loan?
A ground-up construction loan funds the actual building of a property, from site work and foundation through framing, finishes, and certificate of occupancy. Rather than handing you the full loan amount at closing, we release funds in draws as each stage of construction is completed and inspected, and you pay interest only on the amount that has actually been drawn – not on the full committed loan.
We size the loan two ways: as a percentage of total project cost (land plus hard and soft construction costs), and as a percentage of the property’s estimated value once construction is complete. We lend up to 85% of cost and up to 75% of that after-completion value, with rates from 9.5% on a 12-24 month interest-only term. When the project is finished, you can sell it, or refinance into a long-term loan – either as a separate transaction or, with our one-time-close option, automatically as part of the same loan.
| Secured by | The land and the property being built (asset-based) – qualified on project cost, value, and your plan |
| Loan amount | $100,000-$100,000,000 · custom homes, spec builds, multifamily, and commercial |
| Leverage | Up to 85% loan-to-cost · up to 75% loan-to-value on completed (ARV) value |
| Structure | Interest-only during construction · rates from 9.5% · 12-24 month term · draws released against completed work |
| Borrower | Individual, LLC, or builder entity · foreign nationals eligible |
| Coverage | Nationwide – all 50 states |
Loan programs
Construction loan programs
Choose the structure that matches how you plan to build and exit:
Ground-Up Construction
Interest-only financing to build a single project on land you own or are purchasing, with draws tied to completed work.
Construction-to-Permanent
A single closing that funds construction and then converts to a long-term loan automatically once the project is complete.
Builder Spec & Portfolio Lines
A revolving line for builders running several spec homes at once, so you are not re-applying for every new lot.
Land Acquisition + Construction
One loan to acquire a raw or improved lot and fund the construction that follows, closed as a single transaction.
Why build with us
Why builders and developers choose our construction loans
- Draws that keep pace with the jobFast draw turnaround means your crews and subcontractors don’t wait on financing.
- Leverage that respects your budgetUp to 85% of cost means less of your own cash tied up in the build.
- One relationship, start to finishConstruction-to-permanent options mean you are not shopping for a second loan when the project wraps.
- Built for buildersPortfolio lines and repeat-project pricing support investors and builders working more than one site.
Free tool
Construction loan & draw budget calculator
This tool estimates your total project cost, loan amount, and required equity, then estimates the average monthly interest-only payment during construction, using a typical assumption that the outstanding balance averages about half of the total loan amount as draws are released over the build. Enter your numbers to see the estimate. Illustrative only; final terms depend on your plans, budget, and underwriting.
Your project
Illustrative only; not a commitment to lend. Assumes an average outstanding balance of roughly 50% of the loan amount over the construction term, and excludes permits, impact fees, insurance, reserves, and closing costs. The interest rate is an example input, not a quote.
How we compare
CambridgeHomeLoan vs. traditional construction lenders
Local banks and credit unions can offer solid construction terms if you already bank with them, but their process often depends on an existing relationship and a lengthy internal approval. Here is how our builder-focused program typically differs. Where we lead, it is highlighted.
| Feature | CambridgeHomeLoan | Local Banks & Credit Unions (typical) |
|---|---|---|
| Qualifies on | Project cost, value & plan | Borrower relationship plus the project |
| Documentation | Streamlined – no exhaustive financials | Full financials, often a banking relationship |
| Time to close | As fast as 10-20 days | Often 45-90+ days |
| Draw turnaround | Typically 3-5 days | Often 1-2 weeks or longer |
| Builder entity | LLC, builder entity & foreign nationals | Varies by lender |
| Exit / refinance | In-house one-time-close option | Usually a separate permanent loan |
| Model | Direct lender since 1998 | Bank or credit-union backed |
Traditional-lender column is a generic composite of commonly seen terms as of 2026, subject to change, and does not describe any specific lender. For general comparison only.
How it works
Get your construction loan in three steps
Submit your plans
Tell us about the land, your plans and specs, the total budget, and whether you’ll sell or hold when it’s done.
Get a same-day term sheet
We review the project cost, completed value, and your experience – with streamlined documentation – and send clear terms.
Close and start drawing
We close, fund your first draw, and release future draws quickly as each stage of construction is inspected and approved.
Requirements
Construction loan requirements
| Down payment / equity | As little as 15-20% of total project cost, depending on experience and the project |
| Credit | 640+ FICO typical; deal-first, exceptions considered |
| Income docs | Streamlined – asset and project-based; personal income is not the primary driver |
| Loan amount | $100,000-$100,000,000 · custom homes, spec builds, multifamily, and commercial |
| Plans & budget | Approved plans and permits (or in-process), a detailed cost breakdown, and a builder or general contractor |
| Vesting | Individual, LLC, or builder entity · foreign nationals eligible |
| Exit | Sale upon completion, or refinance to a long-term loan (one-time-close or two-time-close) |
Nationwide coverage
Construction loans in all 50 states
We fund ground-up construction loans nationwide. Find state-specific details, or start your application from wherever your project is located:
Answers
Construction loan FAQ
What is a ground-up construction loan?
A ground-up construction loan funds the building of a property from the ground up – site work, foundation, framing, and finishes – through to a certificate of occupancy. Funds are released in draws as each stage is completed and inspected, and you pay interest only on the amount actually drawn.
We lend up to 85% of total project cost and up to 75% of the completed, after-construction value, with rates from 9.5% on a 12-24 month interest-only term. These are business-purpose loans for custom homes, spec builds, and ground-up multifamily or commercial projects, available nationwide from $100,000 to $100,000,000.
How do construction draws work?
Instead of receiving the full loan amount at closing, you receive an initial draw to begin work, and then request additional draws as each phase – foundation, framing, mechanicals, finishes, and so on – is completed. We typically inspect the completed work before releasing the next draw, with turnaround of about 3-5 days.
Because interest only accrues on funds that have actually been drawn, your carrying cost stays lower early in the project and rises as more of the loan is disbursed. Keeping your draw requests and documentation organized helps keep the schedule moving.
What is the difference between loan-to-cost and loan-to-value on a construction loan?
Loan-to-cost (LTC) compares the loan amount to your total project cost – the land plus hard construction costs (materials and labor) and soft costs (permits, design, and financing costs). Loan-to-value (LTV) compares the loan amount to the property’s estimated value once construction is complete, often called the after-repair or after-completion value.
We size your loan using both measures and lend against whichever is more conservative: up to 85% of cost, and up to 75% of completed value. A project with a large gap between cost and completed value – meaning it will be worth meaningfully more than it costs to build – can sometimes support additional leverage.
What is the difference between a one-time-close and a two-time-close construction loan?
A one-time-close construction loan combines the construction financing and the long-term loan that follows it into a single closing, converting automatically once the project is complete. That means one set of closing costs and no risk of a rate or approval gap between construction and permanent financing.
A two-time-close structure treats construction and permanent financing as two separate loans, closed at different times, which can offer more flexibility if you are not certain yet whether you will sell or hold the finished property. We offer both, and can help you decide which fits your plan.
Do I need a licensed general contractor, or can I be an owner-builder?
Most of our construction loans are structured around a licensed general contractor or an experienced builder overseeing the project, since that supports the draw and inspection process and protects the timeline. Builders and developers with a track record of completed projects are a strong fit for our spec and portfolio programs.
Owner-builder scenarios are considered case by case, generally where the borrower has relevant construction or project-management experience. Tell us about your background and your plan for managing the build, and we will let you know what structure makes sense.
Do I need to already own the land to get a construction loan?
No. Our land acquisition plus construction program can fund both the lot purchase and the vertical construction in a single loan, closed as one transaction. If you already own the land, free and clear or with an existing loan to be paid off, that equity can typically be counted toward your required investment in the project.
Either way, we will need basic information about the lot – location, size, zoning, and any site work required – alongside your plans and construction budget, to size the loan correctly.
What happens when construction is finished?
Once the project reaches completion and receives its certificate of occupancy, you have two paths: sell the finished property and repay the construction loan from the proceeds, or refinance into a long-term loan and hold it as a rental or for your own use. With a one-time-close loan, that conversion to permanent financing happens automatically as part of the same loan.
If you close a stand-alone construction loan, we can also help you refinance in-house into one of our long-term DSCR, multifamily, or commercial loan programs once the property is stabilized, so you are not starting the search for a new lender from scratch.
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© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. Construction loans are business-purpose loans for the construction of non-owner-occupied or investment property and are not available for primary residences except where a construction-to-permanent product specifically permits it. Rates, points, loan-to-cost, loan-to-value, terms, draw schedules, and closing timelines are illustrative, subject to change without notice, and subject to borrower, project, and deal qualification and underwriting approval. “Rates from 9.5%,” “up to 85% loan-to-cost,” and other maximums reflect the strongest profiles and are not a quote or commitment to lend. Completed values are estimates confirmed by an appraisal or valuation. Calculator results are illustrative and exclude permits, impact fees, insurance, reserves, and closing costs. Comparison figures are generic market composites for illustration only and are not the terms of, or an endorsement of or by, any specific lender. Illustrations on this page are artwork and do not depict specific properties or projects. This page is informational and does not constitute financial, legal, tax, or investment advice.