What Is A Ground Up Construction Loan?
Construction financing is structured around project milestones. Funds are typically released through draw schedules as work is completed and inspected. Because the collateral is changing during the project, lenders pay close attention to planning, budget control, contractor strength, permits, and exit strategy.
Common Uses
- New commercial building construction.
- Major rehabilitation or redevelopment projects.
- Land plus vertical construction plans.
- Projects with staged draws and completion timelines.
What Lenders Review
Lenders may review plans, budgets, permits, contractor agreements, borrower experience, equity, contingency reserves, appraisal, environmental items, title, insurance, and the permanent financing or sale plan.
Commercial Capital Lenders helps keep the financing package organized so the lender can evaluate the project, the numbers, and the path to completion.