Mon–Fri 8am–6pm · Sat 8am–3:30pm PT
New construction loans that fund the build, draw by draw.
A new construction loan is short-term financing for ground-up builds that releases capital in stages as each phase passes inspection. LGV Capital sizes the loan on the project’s budget and completed value, not your personal income.
- Up to 85% of total project cost. Land, labor, and materials, up to 70% of the after-built value.
- Inspection-based draws. Funds release as each phase is completed, with interest-only payments on drawn funds.
- Builders at every level. Spec homes, multifamily, townhomes, and subdivisions. First-time builders welcome with a qualified general contractor.
- Project-based qualification. No tax returns or W‑2s required. Underwriting focuses on the project and your exit.
Your capital releases as you build.
Construction loans don’t fund all at once. Capital releases in draws as each phase is completed and inspected. Select a stage to see how it works.
Stage 1 of 5 · Closing
Land acquisition & closing
At closing, the land or lot is funded and the approved construction budget is placed into a controlled draw structure. From there, capital is released as work is completed and verified.
Illustrative leverage
Stage 2 of 5 · Draw 1
Foundation & site work
Once excavation, footings, and the foundation pass inspection, your first draw can be released following inspection and sign-off, keeping cash flowing and your build moving.
Illustrative draw
Stage 3 of 5 · Draw 2
Framing & rough-ins
As framing, roofing, and mechanical rough-ins are completed, the next draw can be released, funding the most material-heavy phase of the build.
Illustrative draw
Stage 4 of 5 · Draw 3
Interior & finishes
Drywall, cabinetry, fixtures, and trim. Draws release against verified completion, funding the finish work that turns a build into a sellable or rentable property.
Illustrative draw
Stage 5 of 5 · Draw 4
Completion & exit
Final inspection clears, the certificate of occupancy is issued, and the last draw releases. Sell the property, or refinance into a DSCR loan to hold it as a rental. One partner, start to finish.
Illustrative draw
Illustrative draw schedule only, not a standard LGV Capital schedule. Actual draw amounts and timing are set in your term sheet based on project scope, budget, and inspections.
Construction Loan Requirements & Eligibility
The standard guidelines LGV Capital uses to evaluate ground-up construction projects. Final terms are based on project scope, builder experience, and exit strategy.
Of total project cost, covering land, labor, and materials.
Leverage is also capped at 70% of the completed, after-built value. The lower of the two limits applies.
From single spec homes to multifamily and subdivision developments.
Interest-only payments during construction, with extension options on larger builds.
Funds release as each phase passes inspection, within days of sign-off. Interest is paid only on drawn funds.
Experienced developers and first-time builders working with a qualified general contractor.
Non-owner-occupied spec homes, multifamily, townhomes, and subdivisions, built to sell or hold.
No tax returns or W‑2s required. Underwriting focuses on the budget, plans, completed value, and exit.
No application fee. No obligation to proceed.
Why builders choose LGV Capital for construction loans
LGV Capital funds ground-up builds in inspection-based draws, with leverage based on total project cost, not personal income. Select a build type to see how it works.
Build-to-sell spec homes, funded lot to listing
LGV Capital funds the lot and the construction budget for detached spec homes, releasing draws as each phase passes inspection so your subs stay paid and the build stays on schedule.
- Up to 85% loan-to-cost on land, labor, and materials
- Interest-only payments on drawn funds during the build
- Draws released within days of inspection sign-off
- Exit by sale, or refinance into a DSCR loan to hold as a rental
Ground-up multifamily, structured for scale
Build 2–20+ unit projects with financing sized for larger budgets and longer timelines. Underwriting focuses on the project’s budget and completed value, not your personal income.
- Loan amounts up to $5M for ground-up multi-unit builds
- Extension options on larger, more complex builds
- Draw schedules sized to multi-phase construction
- Projects up to 11 units can refinance into an LGV Capital DSCR loan
Townhome rows and phased subdivisions
For developers building attached units or releasing lots in phases. LGV Capital funds the whole project while you sell or refinance units as they complete.
- Phased draw schedules aligned to multi-unit build timelines
- Partial release options as individual units sell
- Sell or refinance units as they complete
- Capital that scales with the development, not against it
Your first ground-up build, with the right team
Newer to ground-up construction? Paired with a qualified general contractor and a solid project, first-time builders can qualify for the same draw-based financing as seasoned developers.
- Your GC’s track record stands in for builder experience
- Hands-on draw guidance through your first build
- The same inspection-based draws as experienced developers
- No tax returns or W‑2s required
LGV Capital vs. traditional construction loans
Banks underwrite you. LGV Capital underwrites the project.
| Factor | LGV Capital Builder pick Underwritten on the project | Traditional Bank Loan Underwritten on income and financials |
|---|---|---|
| Qualification basis | Project budget & completed value | Income + financial profile |
| Income verification | No tax returns or W‑2s | Full tax returns & W‑2s |
| Max leverage | Up to 85% LTC | 70–75% LTC |
| Draw turnaround | Within days of inspection | 2–4 weeks |
| First-time builders | Accepted with a qualified GC* | Not accepted |
*Subject to qualification and program guidelines.
For builders breaking ground.
Financing that funds the project the way you build it: phased, inspection-based, and structured around the work, not the paperwork.
From plans to groundbreaking, in four steps.
Four straightforward steps from submitting your project to breaking ground. Timing depends on plans, permits, appraisal, title, and underwriting.
-
1
Day 1
Submit your project
Share the lot, plans, budget, and builder in one submission. No tax returns or W‑2s.
You provide
- Lot or land details
- Plans and construction budget
- Your GC and build timeline
-
2
Same day
Get your term sheet
We size the loan based on total project cost and as‑completed value, then send written terms.
You get
- Loan amount and rate
- LTC and ARV leverage
- Term and draw structure
-
3
Weeks 1–2
Underwriting
We review the plans, permits, budget, and builder while appraisal and title are ordered.
You provide
- Plans and permits, or permit timeline
- GC contract and credentials
- Bank statements and LLC documents
-
4
Closing
Close & start building
The land or lot is funded at closing, with the approved construction budget available through a controlled draw structure.
You get
- Land or lot funded at closing
- Draws after inspection and sign-off
- Exit by sale or DSCR refinance
No traditional employment‑income documentation: tax returns, W‑2s, or employment verification.
Get Started Online →No application fee. No obligation to proceed.
Questions investors ask before they build.
A construction loan is short-term financing for ground-up builds. Instead of funding all at once, it funds the land or lot at closing and releases the construction budget in draws as each phase is completed and inspected. Payments are interest-only on funds that have been drawn, and the loan is repaid when you sell or refinance the finished property.
Financing may be available up to 85% of total project cost (LTC) and up to 70% of as-completed value (LTARV). The lower applicable limit generally determines the maximum loan amount. Actual leverage depends on the project, appraisal, builder experience, liquidity, and exit strategy.
Funds release in stages called draws. As each phase of the build, such as foundation, framing, and interior, is completed and passes inspection, the corresponding draw can be released. Your draw schedule is set in your term sheet based on project scope and budget, and you pay interest only on funds that have been drawn.
Once a phase passes inspection and the draw request is approved, funds can be released to keep your subcontractors paid and your build moving. Draw timing for your project is outlined in your term sheet.
First-time builders may qualify when working with an experienced general contractor. The GC’s track record can help satisfy project experience requirements, subject to underwriting, and LGV Capital provides hands-on guidance through your first draw schedule.
No traditional employment-income documentation is required, such as tax returns, W‑2s, or employment verification. Underwriting focuses on the project: the budget, plans, as-completed value, and exit. You’ll still provide bank statements and entity documents, and credit is reviewed.
Ground-up residential construction: single spec homes, 2–20+ unit multifamily, townhome rows, and phased subdivisions. All projects are non-owner-occupied and built for investment, either to sell or to hold as rentals.
Loan amounts range from $150K to $5M, with 12 to 24 month terms. Payments are interest-only during construction, and extension options are available on larger builds.
Yes. The land or lot can be funded at closing as part of total project cost, with the approved construction budget available through a controlled draw structure.
You exit the construction loan by selling the finished property or refinancing into long-term financing. Projects up to 11 units can refinance into an LGV Capital DSCR loan to hold as a rental, with one lender from ground-up through stabilized hold.
To start: lot or land details, plans and the construction budget, and your general contractor and build timeline. During underwriting: plans and permits (or your permit timeline), the GC contract and credentials, bank statements, and LLC documents.
Yes. LGV Capital lends to LLCs and other business entities, so you can build and hold projects the way you already structure your business.
Still have questions?
Built for the people building what’s next.
“The thing that mattered most on my spec build was draw speed. Other guys had me waiting weeks to get reimbursed and my subs were getting antsy. LGV kept the draw process moving and helped us stay on schedule.”
Funded: $620K Spec Home · Austin, TX“This was my first ground-up project and I was nervous about financing. LGV walked me through the whole draw process with my GC and made it feel manageable. They looked at the project and the numbers instead of making me jump through unnecessary hoops, and I’ll be back for the next one.”
Funded: $410K First Build · Boise, ID“We build townhome rows and needed a partner who understood phased releases — sell a unit, release the lien, keep building. Most lenders couldn’t structure it. LGV did, and the partial-release setup kept our capital working the whole project.”
Funded: $2.8M Townhome Development · Nashville, TN