Ground-Up Construction

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Build from the ground up with fast, flexible financing designed for builders, developers, and investors ready to

Bring New Construction Projects to life

What is a Ground-up Construction Loan?

A ground-up construction loan is a short-term financing solution designed for builders and developers who need funding to construct new residential or commercial properties from scratch. Unlike traditional real estate loans that finance existing structures, these loans cover land acquisition, construction costs, and sometimes even soft costs like permits and architectural plans.

The funds are typically disbursed in stages as construction progresses, ensuring that builders have the necessary capital at each phase of development. With tailored terms and flexible repayment options, ground-up construction loans provide the financial support needed to turn raw land or teardown properties into valuable real estate assets.

What is a Ground-Up Construction Loan, and how does it differ from traditional real estate loans?
A Ground-Up Construction Loan is a short-term financing solution designed for builders and developers to fund the construction of new residential or commercial properties from scratch. Unlike traditional real estate loans that finance existing structures, these loans cover land acquisition, construction costs, and sometimes even soft costs like permits and architectural plans.
Ideal candidates include builders, real estate developers, and investors aiming to construct new properties, whether single-family homes, multifamily units, or commercial buildings. These loans benefit those with shovel-ready lots or teardown projects, enabling them to fund new developments without waiting for traditional bank approvals.

EJN Financial offers several benefits:

  • Staged Funding: Funds are disbursed in stages as construction progresses, ensuring capital is available at critical points.

  • Flexible Terms: Loan terms align with construction timelines, allowing for repayment options that match project completion and sale.

  • Comprehensive Coverage: Financing covers the entire construction process, from land acquisition to final build-out, without tying up personal capital. 

Potential challenges include:

  • Higher Interest Rates: Compared to traditional real estate loans, these may have higher interest rates, increasing the overall cost of borrowing.

  • Detailed Requirements: Loans require detailed project plans, permits, and cost estimates, which can create delays in the approval process.

  • Market Fluctuations: Unexpected construction costs and market changes can pose risks, necessitating careful budgeting and risk management.

EJN Financial follows a streamlined 3-step process:

  1. Prequalify Online: Submit basic business information through the “Apply Now” button.

  2. Get Approved: After processing your submission, the underwriting team will discuss the options you qualify for.

  3. Get Funded: Upon approval and accepting the offer, funds are deposited directly into your business bank account for immediate use.