In April 2025, over 1.3 million new homes broke ground across the U.S., proof that even in a high-rate environment, builders are staying busy. Whether it’s a new home or a smart investment property, ground up projects are full of potential.
But financing them takes the right kind of loan, and the right kind of lender.
That’s where ground up construction financing comes in. And that’s where LendSure Home Loans stands out.
What Is Ground Up Construction Financing?
Ground up construction financing refers to loans that are used to fund the construction of a new property on undeveloped land. These loans don’t function like standard mortgages. Instead of receiving the full loan amount in one lump sum, funds are released in draws, increments tied to specific construction milestones like pouring the foundation, framing, or completing electrical and plumbing.
This pay-as-you-build structure offers more control over cash flow and ensures that money is tied directly to progress.
At LendSure Home Loans, our Ground Up Construction loan program goes even further. We finance: The cost of the lot and construction cost based on approved plans:
- The cost of the lot and construction cost based on approved plans
- Up to 65% of the land value
- Up to 85% of construction costs
- Spec builds and build-to-rent scenarios
We also offer interest-only payment options with 12- and 18-month terms.
Who Should Consider Ground Up Construction Financing?
Our program is designed for builders who know what they’re doing, and need a lender that does too. You may qualify if you’ve:
- Completed three or more new builds, or
- Completed two builds and one major renovation valued at $200,000 or more
If that’s you, this program may be the Ground Up Construction financing solution you’ve been looking for.
We know banks often say no to these projects. They undervalue paid-off lots, avoid reimbursing land purchases, and require excessive cash reserves. If you’re a builder with a proven plan, you deserve a lender who will meet you where you are, not where traditional guidelines say you should be.
The LendSure Advantage
Most lenders treat construction loans like a risk. At LendSure Home Loans, we see them as an opportunity for both our clients and our lending partners.
Here’s what sets us apart:
1. Flexible Documentation
We don’t require income documentation. Instead, we look at your experience, assets, credit, and the details of your build plan to determine eligibility.
2. Delayed First Payments
Cash flow is essential in the early stages of a build. We give qualified borrowers the option to finance the first four interest payments into the loan. That means no payments due for up to five months, more time to focus on getting the job done.
3. Transparent Draw Process
Our holdback draw process ensures that funds are released only when a construction milestone is met and verified through a third-party inspection. It’s a simple, structured way to stay on schedule and manage costs.
4. Speed and Simplicity
While traditional construction loans can take months to close, we can get deals done in as little as 25 to 45 days, depending on documentation. We work fast because delays cost money.
5. Competitive Pricing
We offer fair pricing based on builder experience, project scope, credit profile, and available assets. Our common-sense approach gives you the flexibility to move forward, even when other lenders hesitate.
Common Ground Up Construction Financing Questions, Answered
Can I use this loan to build a primary residence?
Our program is primarily designed for spec builds and investment properties, including build-to-rent scenarios. This program is not intended for owner-occupied or primary residences.
Is a GC license required?
Yes, your contractor must hold a valid General Contractor license.
Can loans be closed in an LLC or business entity?
Yes. Loans can be closed in as an LLC or other business entity, giving you added flexibility as a business-oriented borrower.
Can loan origination fees be financed?
Yes, loan origination fees can be rolled into the loan amount to reduce upfront costs.
How does the draw process work, and are there any fees involved?
LendSure Home Loans’ holdback draw process disburses funds in stages as construction progresses. After each phase of work is completed, a third-party inspector verifies the milestone before funds are released. A draw fee of $150 to $250 applies to each disbursement.
Are permits required?
Yes, permits from your local authority must be submitted prior to funding.
Can I use more than one property to secure the loan?
Yes, cross-collateralization is available.
Is Dutch Interest required?
Generally, no. But in certain near-miss cases, Dutch Interest may be used as a compensating factor.
WHY CHOOSE LENDSURE HOME LOANS?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we say ‘yes’ more often to today’s homeowners and investors.
Ready to break ground? Contact us today to learn more about our Ground Up Construction Financing.
