Build & renovate
Ground-Up Construction
Ground-up construction financing funds a new investment project through land acquisition or existing land equity and staged construction advances. Lenders assess the builder, budget, approvals and completed value together.
Who it fits
Experienced builders with shovel-ready residential projects, documented costs and a defined sale or rental exit.
Work through the numbers
A practical example
Illustration: a $1,000,000 eligible project cost and $1,300,000 completed value would imply a $900,000 LTC ceiling at 90% and a $975,000 ceiling at an assumed 75% of completed value. The $900,000 limit controls before other underwriting constraints.
What to have ready
- Plans, permits or approval status and site information
- Detailed budget, schedule and general contractor credentials
- Experience schedule, land basis and available liquidity
Questions, answered.
Start with the financing mechanics, then look at the details that can change your actual terms.
Can land I already own count toward equity?
Potentially. The lender decides how to recognize land cost, current value, liens and ownership seasoning. Ask for the accepted land-equity amount in the written structure instead of assuming every dollar of appraised value becomes usable equity.
Do I need permits before closing?
The program determines which approvals must be complete at closing or before the first construction draw. Missing permits, unresolved utilities or uncertain access can change eligibility. Separate vertical construction from land-development and entitlement costs in the budget.
How are construction draws released?
The lender generally reviews work progress, inspections and documentation before releasing approved funds. Confirm reimbursement timing, retainage, lien-waiver requirements and any inspection fee. Carry a cash buffer so the contractor can keep working while a draw is processed.
Can an experienced flipper qualify to build a new home?
Some lenders consider renovation experience; others require completed ground-up projects. The similarity and scale of past work matter. A qualified general contractor helps, but does not always replace the borrower’s own experience requirement.
What happens if the project goes over budget?
A loan does not automatically increase when costs rise. You may need to fund overruns from your own liquidity, seek a lender-approved change or reduce scope. Include a realistic contingency and discuss the procedure before construction starts.
Can I keep the finished home as a rental?
Yes, if the project and borrower qualify for a rental takeout. Underwrite that exit early using likely rent and permanent debt service. A construction-to-rental plan may still involve a separate approval and closing.
What should I send CommFi to evaluate my scenario?
Start with the property or equipment details, transaction amount, intended use and timing. Include the documents listed above when available. CommFi can then assess the financing route and request scenario-specific terms. A pre-qualification is preliminary; appraisal, documentation and final lender approval can change the result.
Go a little deeper
Program references
Published references checked September 26, 2026. Third-party examples describe market programs and do not establish a CommFi lending relationship or guarantee availability.
Headline terms are illustrative best-case program features for qualified scenarios, not a loan offer or a confirmed CommFi lender commitment. Availability, proceeds and pricing depend on the lender, borrower, collateral and final underwriting. Maximum leverage, lowest pricing and fastest closing may not be available together.