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Overview
Ground-up construction loans provide the capital to build new residential or commercial properties from scratch. OpenLane Funding works with specialized construction lenders who fund the full build process—from land acquisition through certificate of occupancy. Draws are disbursed in phases tied to construction milestones, so you’re only paying interest on what’s been drawn. If you have the plans, the permits, and the experience, we’ll get you the financing.
Who This Is For
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Experienced builders and developers constructing spec or pre-sold homes
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Investors building rental properties (single-family, multifamily, or mixed-use)
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Developers building small subdivisions or townhome communities
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Builders who need to close on a land purchase quickly while construction plans are finalized
Loan Specifications
Specification
Details
Rates
9.5% – 14% (experienced builders with strong FICO get best pricing)
LTV / LTC
Up to 85–90% of total cost (land + construction); 65–75% of completed value
Min Credit Score
Loan Amounts
Term Length
Closing Timeline
620–700 typical
$75,000 – $10,000,000+
12–24 months (draw schedule tied to construction phases)
14–30 days
Property Types
Single-family, townhomes, small multifamily, mixed-use, commercial
Experience Required
3+ completed projects preferred; first-time builders considered with strong GC
Draw Process
Funds released per completed phase; third-party inspections at each draw
How It Works
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Submit Your Deal — Provide the land details (owned or under contract), construction budget, plans/permits, and completed value estimate. Include your build experience history.
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Feasibility Review — We review your project scope, budget, timeline, and comps to confirm the numbers work. We’ll identify the best lender based on your experience and deal structure.
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Underwriting & Approval — The lender orders an appraisal based on the completed plans (as-completed value). They’ll review your contractor agreements, permits, and construction timeline.
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Close & Initial Disbursement — At closing, the land acquisition (or payoff) is funded. Remaining construction funds are held in escrow for phased draws.
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Construction Draws — As each construction phase is completed (foundation, framing, mechanical, finish), request a draw. A third-party inspector verifies the work, and funds are released within 3–5 business days.
Key Benefits
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Finance up to 85–90% of total project costs including land, hard costs, and soft costs
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Interest-only payments on drawn funds — you don’t pay on money that hasn’t been disbursed
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Flexible draw schedules tailored to your construction timeline
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One-time close options available (construction-to-permanent) to avoid refinancing after build
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Experienced construction lending team that understands builder workflows
Common Questions
Q: How do construction draws work?
Construction loans are disbursed in phases called draws. You submit a draw request when a construction milestone is completed (e.g., foundation poured, framing complete, rough-in done). A third-party inspector visits the site to verify the work matches the approved scope. Once verified, funds are released within 3–5 business days. Most projects have 4–6 draws.
Q: Do I need to own the land already?
Not necessarily. Many construction loans include land acquisition as part of the financing. If you own the land free and clear, its equity counts toward your down payment. If the land is under contract, the lender can fund the purchase at closing alongside the construction hold-back.
Q: What if I’m a first-time builder?
Lenders strongly prefer borrowers with 3+ completed builds. However, if you’re a first-time builder, you can still qualify if you have an experienced general contractor, a strong credit profile (700+), and a well-documented project plan. Expect higher rates and lower leverage on your first build.
Ready to get started? Submit your deal for a fast quote.