Business
Construction Loans
Non-Owner Occupied Single-Family Properties; Condos; Townhomes
Minimum ARV
$150k
Loan Amounts
100k - 2 Mil
Rates
Starting at 8.99%
Term
12-24 Months
Popular Questions
Building from the ground up requires precision, timing, and a capital partner who understands the development lifecycle. We’ve answered the most common questions regarding our construction draw process, leverage requirements, and timelines to help you break ground with confidence.
What is a ground-up construction loan?
A ground-up construction loan is a strategic short-term financing solution designed to fund the acquisition or refinance of land and provide the capital necessary for new development. From the initial foundation to the final inspection, this loan covers the complete cost of building a new investment property from the ground up.
What property types do we finance?
We provide ground-up construction capital for a diverse range of residential projects: Single-Family Residences: Custom builds and individual investment homes. Small Multifamily: Development projects for 2–4 unit properties. Mid-Sized Residential: Larger multifamily projects up to 9 units. Strategic Projects: Spec homes and build-to-rent (BTR) communities. Whether your ultimate strategy is a quick resale, long-term rental, or a permanent refinance, our team will structure a loan that aligns with your exit goal.
Does CapPro fund both the land acquisition and the vertical build?
Yes. We provide a seamless, all-in-one financing solution for your development: Land Acquisition: Capital to purchase or refinance your project site. Vertical Construction: Funding for 100% of your build budget, released via a managed draw schedule. Our team will structure your loan to maximize leverage, ensuring the project remains within our competitive Loan-to-Cost (LTC) and After-Repair Value (ARV) parameters.
What are the capital requirements for a new construction loan?
New construction projects typically require a down payment of 20%–30% based on the total project cost, which includes both the land acquisition and the full build budget. In addition to the down payment, investors should be prepared to: Show Proof of Reserves: Evidence of liquid assets to cover unexpected contingencies. Maintain Kickstart Capital: Sufficient funds to initiate the early phases of construction until the first milestone is reached and the initial draw is released.
How is the construction budget disbursed?
We utilize a milestone-based draw system to keep your project moving toward completion. Once a specific phase of work is finished and verified by a third-party inspection, we release the corresponding funds from your construction budget. Our team will work closely with you to coordinate these inspections, ensuring a smooth transition between phases and fast capital releases.
What documents are required for a New Construction approval?
To get your project moving, we focus on the viability of the build rather than your personal tax history. Please have the following ready for review: Detailed Build Plan: Your construction budget, scope of work, and projected timeline. Site Documentation: Plans, permits, and specs (as available), plus your lot purchase contract or proof of ownership. Professional Team: A resume or bio for your Builder/General Contractor. Corporate & Financials: Entity documents (if using an LLC), 2 months of bank statements for down payment/reserves, a valid ID, and an insurance quote. The Bottom Line: We don’t require W-2s or tax returns—we just need to see a profitable deal and a solid construction roadmap.
Do I need to be a professional builder to qualify for financing?
No—you don't need a background in construction to secure a loan with us, but a qualified team is essential. Like most private lenders, we require you to partner with a licensed and reputable General Contractor (GC) who has a proven track record with similar developments. Even if this is your very first build, you can qualify if: The deal is profitable and the numbers align with our lending criteria. Your contractor is fully licensed and carries a strong reputation. Your project roadmap and construction timeline are detailed and realistic. We are here to help you structure your first development for success and avoid the common pitfalls of new construction.
Can I transition a new build into a long-term rental property?
Absolutely. This is one of the most effective strategies for building long-term generational wealth. Many of our developers use a short-term Ground-Up Construction Loan to fund the build, then seamlessly transition into a DSCR Loan once the property is leased. This 'Build-to-Rent' model allows you to: Settle the construction debt with a long-term mortgage. Secure low, fixed rates for the long haul. Generate steady passive cash flow from your new asset. We specialize in planning both phases of your project—ensuring a smooth handoff between construction and permanent financing so your capital is never sidelined.
What is the timeline for closing a ground-up construction loan?
Because new development requires a more detailed review of site plans and permits, we typically close ground-up loans within 21–30 business days. We work alongside you to accelerate this window by streamlining the review of your project's readiness.
To ensure the fastest possible closing, please have the following ready:
Finalized project budget and detailed scope of work.
Credentials for your licensed General Contractor.
Approved site plans, permits, and active insurance quotes.
LLC entity documents and verified proof of funds.
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