- The usual experience bar is one completed ground-up build in the last three years. Roc and Civic's 90% tier wants three or more similar builds, and a first-time builder usually needs an experienced partner or a capped tier.
- Lenders published 82.5–90% of total cost, capped at 65–75% of the as-completed value. Whichever is lower is the loan; at 85% of cost, you bring 15% plus points, interest and closing costs.
- Permits move the land advance. Roc and Civic advance 75% of the lot when it's permitted and 60% when it isn't, then catch up once plans and permits are approved. Kiavi requires no permits before closing.
- Interest reserves cover the cheap months. On the $450,000 build below, the first four months of interest cost about $1,960 and the last four $11,875.
Ground-up construction loan requirements come in three layers. The builder: a completed project on your record, a contractor the lender approves, credit and liquidity. The project: zoned land, plans, a line-item budget and permits or a clear path to them. The numbers: a loan that fits under both a loan-to-cost (LTC) cap and a cap on the as-completed value. Every figure below is from a lender's own program page as of October 2026, and every one varies by lender.
The checklist: what construction lenders published
| Requirement | Published rule |
|---|---|
| Experience | Usually 1+ ground-up project in the last 3 years; 3+ similar builds for top tiers |
| General contractor | Reviewed in underwriting at Lima One; a valid GC license required at LendSure |
| Credit | 650 at RCN, where Rehab Financial's lowest tier also starts; 660 at LendSure, with no mortgage lates in 48 months |
| Liquidity | The greater of $15,000 or 25% of the construction budget, plus closing costs, at Rehab Financial |
| Land | Properly zoned, with utilities lateral-ready (Lima One); all entitlements (Rehab Financial) |
| Plans and permits | Plans and a line-item budget everywhere; permits not required before closing at Kiavi |
| Loan-to-cost | 82.5–90% of land plus construction |
| As-completed value cap | 65–75% |
| Land advance | 60–75% of the lot |
| Interest reserve | 1-month minimum at Roc and Civic; none required at closing at LendingOne |
| Term | 12–24 months interest-only, with 3- or 6-month extensions at some lenders |
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Experience: a finished build on your record, or a partner with one
Experience moves construction terms more than anything else, and lenders define it in different ways. Several accept fix-and-flip or contractor experience; others want completed new builds only.
| Lender | Experience rule | What it gets you |
|---|---|---|
| Roc Capital, Civic | Ground-Up Program: 1–2 prior ground-up builds; a GC can qualify if permits tie to ground-up work | 85% of total cost, 70% of completed value, 1–2 properties |
| Roc Capital, Civic | Experienced Developer: 3+ similar builds plus heavy rehabs with expansion, as a professional developer or builder | 90% of cost with a financed interest reserve, up to 10 properties |
| LendingOne | At least 1 ground-up project in the past 36 months | Up to 90% LTC, 70% of ARV |
| Lima One | Ground-up experience on title, as a general contractor, or from fix-and-flip projects | Up to 90% LTC, 75% of ARV |
| RCN Capital | Tiers by ground-up projects in the last 3 years | 0 projects: 65% of ARV; 1–4: 70%; 5+: 75% |
| Rehab Financial | 3 completed projects, or 3 flips including at least 1 large rehab | 90% LTC cap; 65–70% of as-completed value |
| LendSure | 3 completed builds, or 2 builds plus a renovation over $200,000 | Up to 65% of the lot cost back at closing |
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If you haven't built before, the paths are narrow but real. Roc and Civic consider guarantors with no experience case by case in their standard program and allow them in the experienced tier only alongside a guarantor who qualifies. RCN has a zero-project tier, capped at 65% of completed value. Lima One counts flips and general contracting. Whichever route you take, document it: addresses, permit numbers, certificates of occupancy, budgets against actual costs and finished photos. Roc and Civic's GC exception turns on permits tied to ground-up work, so pull the permit records before you apply.
Your general contractor is underwritten too
Lima One reviews the general contractor during underwriting. LendSure requires the contractor to hold a valid GC license and asks for contractor agreements at intake. LendingOne doesn't require a GC but says a licensed one with a verifiable track record may improve approval. Licensing itself is set by states and cities: Texas, for example, requires state licenses for electrical, plumbing and air conditioning work.
- License and insurance: the GC's license where one is required, and certificates for general liability and workers' compensation.
- Track record: homes of similar size and finish completed in the last few years, with addresses the lender can check.
- A signed contract tied to the line-item budget, with a schedule by phase and a payment schedule that matches the draws.
- Insurance on the build: ask which policies the lender requires at closing. A structure under construction is normally covered by a builder's risk policy, not a homeowner's policy.
Plans, permits and budget: how ready the project must be
Lenders disagree most on readiness. Kiavi requires no permits before closing, defines permit-ready as full municipal approval of all necessary documents, and lets you include the permit fee in loan proceeds at closing. Roc and Civic will close on unpermitted land but advance less on it. RCN sizes its loans assuming entitlements, permits and approved plans are in place, Rehab Financial requires all entitlements, and LendSure won't release funds until approved permits are issued.
| Item | Published rule |
|---|---|
| Building plans | Required at Lima One and LendSure; RCN's leverage assumes approved plans |
| Line-item budget | Required at Lima One and LendSure; hard costs financed up to 100% at Lima One, Roc and Civic |
| Soft costs | Covered at LendingOne; Kiavi lets you finance the permit fee |
| Zoning and utilities | Properly zoned, municipal utilities lateral-ready (Lima One) |
| Property type | Vertical 1–4 unit construction; Lima One finances no horizontal site work |
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Build the budget the way the lender will draw it: site work, foundation, framing, roofing and windows, mechanical rough-ins, insulation and drywall, finishes, and final grading and landscaping, with permits, plans and engineering on their own lines. Carry a contingency in your own cash as well. The loan is sized on the budget you submit, so an overrun is usually yours to fund.
Sizing: loan-to-cost and the as-completed value cap
Construction loans are sized on two caps, and the lower one wins. Loan-to-cost is a share of land plus construction. The value cap, sometimes called LTV on completion or loan-to-ARV, is a share of what the appraiser or valuation team says the finished home will be worth. Some lenders add a third limit, a land advance plus 100% of hard costs.
| Lender | Max loan-to-cost | Max of completed value | Loan size |
|---|---|---|---|
| Kiavi | 85% of purchase plus construction | 70% | $150K–$10M |
| Lima One | Up to 90% (its FAQ says 85% of blended costs) | 75% | $100K–$5M |
| LendingOne | Up to 90% | 70% | Up to $40M |
| Roc Capital, Civic | 85%; 90% for experienced developers | 70% | $50K–$3M |
| RCN Capital | 82.5–90% by tier | 65–75% by tier | $100K–$2M |
| Rehab Financial | 90% cap | 65% at 650–699 FICO; 70% at 700+ | $100K–$1.25M |
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Credit can move the value cap, not just the rate: Rehab Financial gives a 700+ score 70% of as-completed value and a 650–699 score 65%. Kiavi requires no third-party appraisal and values the project with its own platform; Lima One uses market valuations. Either way, the finished value in the cap is the lender's, so send plans, finish specifications and recent sales of new homes nearby.
Land equity: what your lot is worth to the lender
Land is where most of your equity comes from. Roc and Civic advance up to 75% of the lower of land value or purchase price, or 60% if the lot is unpermitted, and raise the advance to 75% with a catch-up draw once plans and permits are approved after closing. Lima One advances up to 60% of lot cost, LendSure up to 65%, and Rehab Financial up to 70% for experienced builders. Own the lot already? It counts toward your share of cost, and any loan on it is paid off from the advance.
| Rule | Advance at closing | Your cash in the lot |
|---|---|---|
| 75% of the lower of value or price, permitted (Roc, Civic) | $75,000 | $25,000 |
| 70%, experienced builders (Rehab Financial) | $70,000 | $30,000 |
| 65% of lot cost (LendSure) | $65,000 | $35,000 |
| 60%, unpermitted (Roc, Civic) or lot cost (Lima One) | $60,000 | $40,000 |
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These are maximums. When loan-to-cost is the lower cap, the land advance can shrink well below them, as the worked example shows. Kiavi also offers a refinance that restores cash you used to buy a lot, within six months of the purchase.
Interest reserve: who pays the monthly interest during the build
Construction loans are interest-only on drawn funds, so the monthly bill starts small and grows with every draw. Roc and Civic require an interest reserve of at least one month, and financing it is what takes their experienced developers from 85% to 90% of cost. Lima One offers interest reserves. LendingOne requires no reserves at closing. LendSure builds the first four months of interest into the loan and lets the first payment wait up to five months. A financed reserve is borrowed money, so it adds to the balance you pay interest on.
Size a reserve on the draw schedule, not the loan amount. Early months are cheap because little is drawn; the expensive months are at the end, when the full balance is out and you're waiting on a buyer or a refinance.
Draws and inspections: paid by milestone, after the work
Only the land advance funds at closing. The construction budget is released in draws as each milestone is finished and verified; Lima One lists foundation, framing, mechanical systems and interior completion for ground-up projects. Speeds published in October 2026: Lima One wires funds in as little as 24 hours after photos and receipts are reviewed, LendingOne's phone-based virtual draws fund in as little as 2 days, and LendSure verifies each phase with a third-party inspection, with draw fees of about $150–250. Civic allows multiple draws at the borrower's discretion.
The lender's draw inspection is separate from the city's inspections, so schedule both: a lender may want the city's inspection passed before it pays a milestone, and LendSure releases no funds until approved permits are issued. Our guide to the fix and flip draw process covers draw packages, lien waivers and change orders, which work the same way on a new build.
Timelines: closing, term and extensions
| Lender | Term | Extensions |
|---|---|---|
| Kiavi | 12, 18 or 24 months | 3- or 6-month options |
| Roc Capital, Civic | 12 months; up to 24 for experienced developers | To 18 months at lender discretion in the standard program |
| LendingOne | 12–24 months | Not published |
| Lima One | 13, 19 or 24 months | Not published |
| Rehab Financial | 12 months | Two 3-month extensions, with fees |
| LendSure | 12 or 18 months | Not published |
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Published closing times vary widely. Rehab Financial publishes closings in as few as 5–10 business days and LendSure 15–30 days, and Kiavi offers single or dual closes. Lima One sets an exposure limit of up to 10 times your liquidity, valid for six months, which caps how many builds you can carry. Pick the term by adding permit time, the build, the sale or refinance and a buffer, then ask for extension pricing in writing.
Worked example: a $450,000 spec build, sized and scheduled
A builder with two completed spec homes buys a permitted $100,000 lot at closing and builds a single-family home with a $350,000 hard-cost budget. The appraised as-completed value is $600,000. The lender follows Roc and Civic's Ground-Up Program: 85% of total cost, 70% of completed value, and 75% of the lot plus 100% of construction. Interest is 10% on drawn funds and points are 1.5%, both inside New Silver's published construction ranges (9.75–11.25% and 1–2%).
| Limit | Calculation | Amount |
|---|---|---|
| Loan-to-cost | 85% × $450,000 | $382,500 |
| As-completed value | 70% × $600,000 | $420,000 |
| Land plus hard costs | 75% × $100,000 + $350,000 | $425,000 |
| Loan: the lowest | $382,500 | |
| Your equity | $450,000 − $382,500 | $67,500 |
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If the lender funds all $350,000 of construction through draws, the cap comes out of the land: $32,500 at closing, not $75,000. Some lenders apply it the other way, funding more land up front and holding back part of the construction budget; the loan is the same, but the timing of your cash isn't. Note what that means for permits here: the unpermitted 60% land advance ($60,000) would never bind, because loan-to-cost already holds the land advance at $32,500.
| Months | Milestone drawn at the end of the period | Draw | Balance outstanding | Interest |
|---|---|---|---|---|
| 1–2 | Foundation | $52,500 | $32,500 | $542 |
| 3–4 | Framing and dry-in | $105,000 | $85,000 | $1,417 |
| 5–6 | Mechanical rough-ins | $70,000 | $190,000 | $3,167 |
| 7–8 | Insulation, drywall, interior | $70,000 | $260,000 | $4,333 |
| 9–10 | Finishes and final | $52,500 | $330,000 | $5,500 |
| 11–12 | Listing and sale | $382,500 | $6,375 | |
| Total | $350,000 | $21,333 |
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The first four months cost about $1,960 in interest and the last four $11,875. A one-month reserve on the full $382,500 is $3,188, which covers the first four months of this schedule and part of the fifth. Plan to pay the rest from cash or a larger financed reserve.
Cash through the sale: $67,500 of equity, $5,738 in points, $21,333 of interest and about $4,000 of closing costs (assumed) is $98,571. Rehab Financial's liquidity rule, the greater of $15,000 or 25% of the construction budget plus closing costs, would want $87,500 plus those closing costs in the bank at application. Sold at $600,000 with 6% selling costs ($36,000), the build clears $82,929 before income tax.
What changes the answer
- A lower completed value. At $540,000, 70% is $378,000 and the loan drops $4,500. The value cap starts to bind below $546,429.
- More experience. At 90% of cost, the experienced-developer tier with a financed interest reserve, the loan is $405,000, still under the $420,000 value cap, and your equity falls to $45,000.
- A rental exit. A build-to-rent refinance at 75% of the $600,000 value is $450,000, enough to repay $382,500. The debt service coverage ratio (DSCR) lender will test whether the rent covers the new payment, so check rent before you count on it.
Investor construction loans are business-purpose loans for homes you'll sell or rent, which neither you nor your family will live in. To build a home you'll occupy, you need a residential construction mortgage instead.