Whether you are building spec homes for resale, constructing townhomes, or developing single-family properties, On Top Funding provides structured construction financing designed for real estate investors at every experience level.
Based on total project cost including land acquisition and construction budget
Based on the after-construction appraised value of the completed property
Structured to align with your construction timeline and exit strategy
Higher credit scores may unlock more favorable terms and leverage
Non-owner occupied investment properties only
Option to roll into a long-term loan upon project completion
Your credit profile and experience level determine maximum leverage. Stronger borrower profiles access higher LTC and more favorable pricing.
| FICO Score | Max LTC | Max LTV (As-Completed) |
|---|---|---|
| 740+ | Up to 90% | Up to 75% |
| 720 - 739 | Up to 85% | Up to 75% |
| 700 - 719 | Up to 80% | Up to 70% |
| 680 - 699 | Up to 75% | Up to 65% |
| 650 - 679 | Up to 70% | Up to 60% |
Actual terms are subject to underwriting, project scope, and borrower experience. Contact us for a custom quote.
A ground up construction loan is a short-term financing product designed for real estate investors who want to build new residential properties from a vacant lot or demolished site. Unlike traditional renovation loans, these loans fund the entire construction process from foundation to certificate of occupancy.
Funding is disbursed in stages through a structured draw schedule. As each phase of construction is completed and verified through inspection, the next draw is released. This protects both the lender and the borrower by ensuring funds are tied directly to measurable progress on the project.
Construction loans are structured with a defined term, typically 12 to 24 months, and are designed to be repaid through a sale of the completed property or a refinance into a long-term loan such as a DSCR rental program. Investors building spec homes, townhome projects, or build-to-rent portfolios use this type of financing to scale without tying up large amounts of personal capital.
Provide your project details including the construction budget, timeline, plans and specifications, and contractor information. We review the full scope of the build.
Our team underwrites the project based on the borrower profile, budget feasibility, and after-construction value. In-house underwriting allows for faster decisions.
Upon closing, an initial draw is funded to cover land acquisition and early-stage construction costs. The remaining loan amount is held in reserve for future draws.
As construction milestones are completed, you request draws. Each draw is verified through a third-party inspection before funds are released.
Once the property receives its certificate of occupancy, sell the property or refinance into a long-term loan. Construction-to-permanent options simplify this transition.
We work with multiple construction lenders, allowing us to match your project with the capital source that offers the best terms for your specific deal and experience level.
Whether this is your first ground-up project or your fiftieth, we structure deals for investors at every level. First-time builders with strong contractor teams and credit are encouraged to apply.
We review your project scope, budget, and exit strategy before submitting to a lender. If something does not underwrite, we tell you before you waste time and money on applications.
Construction timelines depend on consistent cash flow. We work with lenders that prioritize fast draw schedules so your project stays on track and your contractors stay paid.
For investors building rental properties, we offer a seamless transition from a construction loan into a long-term DSCR loan, eliminating the need for a separate refinance closing.
From reviewing your construction budget and contractor qualifications to structuring the draw schedule and coordinating inspections, we support you through the entire build process.
No. While experience can improve your terms and leverage, first-time builders with strong credit, a qualified licensed general contractor, and a well-structured project budget can qualify. We will help you put together a submission package that positions your deal for approval.
Your loan is funded in stages tied to construction milestones. After the initial draw at closing (typically covering land and early construction), you submit draw requests as each phase is completed. A third-party inspector verifies the work, and funds are released. This process ensures the build stays on budget and on schedule.
A construction-only loan covers the build phase and must be repaid at maturity, typically through a sale or refinance. A construction-to-permanent loan automatically converts into a long-term loan (such as a 30-year DSCR loan) upon completion, eliminating the need for a separate closing and saving you time and closing costs.
Ground up construction loans are available for non-owner occupied single-family residences, condominiums, and townhomes. These are investment properties only. Multi-unit projects of 5 or more units may be considered on a case-by-case basis depending on the capital source and project scope.
You will need a detailed construction budget with line items and contingency allowances, architectural plans and specifications, a draw schedule tied to construction milestones, a licensed general contractor profile with references and experience on comparable projects, proof of lot ownership or a purchase contract, and standard borrower documentation including credit authorization and entity documents.
Yes. If your exit strategy is to hold the property as a rental, a construction-to-permanent loan structure allows you to build the property and then convert into a long-term DSCR rental loan without a separate refinance. This is an increasingly popular strategy for investors building single-family rental portfolios.
Apply now and let us structure a construction loan that fits your project scope and investment timeline
Apply NowDisclosure and Compliance Notice: This is not an offer to lend and does not constitute a loan commitment. The information provided is for educational purposes and general overview only. Specific loan terms, rates, and fees will be determined based on individual application, underwriting review, and credit approval. On Top Funding reserves the right to decline any application or modify terms based on its underwriting analysis. All loans are subject to property appraisal, title clearance, and satisfactory completion of underwriting. Rates and terms are subject to change without notice. This material is not intended as financial advice. Borrowers should consult with financial advisors and legal counsel regarding their specific transaction. Equal Opportunity Lender. Loans are made by On Top Funding and its licensed subsidiaries.