Ground-up Construction
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.
Which business is ideal for this type of small business financing?
Ground-up construction loans are ideal for builders, real estate developers, and investors looking to construct new properties, whether it's 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. Developers working on spec homes, infill projects, or large-scale subdivisions also rely on this financing to cover construction expenses and maintain steady project momentum.
Advantages
One of the biggest advantages of ground-up construction loans is that they provide staged funding, ensuring builders have capital available at critical points throughout the project.
These loans also offer flexible terms that align with construction timelines, allowing for repayment options that match project completion and sale.
They enable developers to finance the entire construction process, from land acquisition to final build-out, without tying up personal capital.
Disadvantages
A key disadvantage of ground-up construction loans is that they often come with higher interest rates compared to traditional real estate loans, increasing the overall cost of borrowing.
These loans also require detailed project plans, permits, and cost estimates, which can create delays in the approval process.
Market fluctuations and unexpected construction costs can pose risks, requiring careful budgeting and risk management to ensure a profitable outcome.
Our 3 Step Process
Prequalify Online
To get prequalified, follow the "Apply Now" button and submit some basic business information.
Get Approved
After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.
Get Funded
Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.
Qualifying Criteria
Approval for loans from EJN Financial isn’t based on your credit score alone.
We focus on the overall health of your business.
