GROUND-UP CONSTRUCTION FINANCING FOR REAL ESTATE DEVELOPERS
Financing for qualified investors and developers building new residential investment properties. QREF reviews project feasibility, borrower experience, and the construction budget before structuring a loan that covers land acquisition and construction draws.
Typical Use Cases
- Building new single-family investment homes for sale or rent
- Constructing townhouse or small multifamily developments
- Acquiring land with approved plans and permits
- Scaling a development business across multiple projects
- Transitioning from fix & flip into ground-up development
Financing Highlights
Up to 75%
Loan-to-cost (qualifying)
Up to 65%
Of completed value
Combined
Land + construction
Milestone-based
Draw schedule
Project Eligibility
- Residential development and qualifying townhouse projects
- Approved budgets, plans, and permits
- Licensed general contractor selected
- Feasible exit strategy (sale, rental stabilization, or refinance)
Borrower Considerations
- Developer experience with similar projects reviewed
- Project feasibility analysis required
- Construction draw procedures tied to milestones
- Financing limits and terms vary by project and are not universally available
The Loan Application Process
- 1
Submit project
Provide plans, budget, permits, land status, and exit strategy.
- 2
Feasibility review
We review project feasibility, borrower experience, and budget.
- 3
Term sheet
If qualified, we issue a term sheet with LTC, draws, and conditions.
- 4
Due diligence
Plans, permits, contractor, and budget verification.
- 5
Closing & draws
Close, then fund draws as milestones are completed and inspected.
Common Borrower Questions
Do I need to own the land first?
Not necessarily. Land acquisition and construction can be financed together in qualifying scenarios. If you already own the land, its value counts toward your equity contribution.
How are construction draws released?
Draws are tied to construction milestones and typically released after inspection of completed work (foundation, framing, drywall, etc.).
What experience is required?
Developer experience with similar projects is reviewed as part of underwriting. First-time developers may qualify with a strong project and experienced contractor.
What is the max LTC?
Up to 75% loan-to-cost for qualifying projects, with up to 65% of projected completed value under applicable program guidelines. Limits vary by project.
Ready to Discuss Your ground up construction Scenario?
Tell us about your investment property and financing goals. We'll review your scenario and discuss available options.