Financing5 min read
Hard Money vs. Conventional: When Speed Wins
A 45-day bank close can cost you the deal. Here is when paying a few points for speed and certainty is the smartest money you will spend.
Read articleNew Construction Financing: The Complete Guide
How builders fund land acquisition and ground-up construction with milestone-based draws instead of a rigid bank construction loan.
New construction financing funds a project from the dirt up — land acquisition plus the vertical build — with capital released in stages as milestones are hit. It is built for spec builders and developers who need speed and flexible draws.
This guide covers loan-to-cost, the draw process, and what makes a ground-up deal easy to underwrite.
How Construction Draws Work
Rather than handing over the full budget at closing, a construction lender funds the land and then reimburses build costs in draws tied to completed milestones — foundation, framing, mechanicals, finish. Fast draw inspections keep the crew moving.
What Lenders Look For
- A realistic build budget and timeline.
- Builder experience or a qualified GC.
- A defensible finished-value comp for the completed home.
Loan Programs
Programs Covered In This Guide
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Supporting Articles
Go deeper on every part of this topic with the guides and breakdowns below.
- Financing
Frequently Asked Questions
Yes. Ground-up loans typically fund land acquisition plus build costs, up to around 90% of total project cost.
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