Construction Loans for Builders from 8.875%

Why Builders Choose Ledger for Construction Loans

Close in 21 Days We underwrite fast because we fund our own loans. No waiting on committees.
48-Hour Draw Turnaround Fast, predictable draws through our Asset Management portal. No surprises.
Up to 90% of Construction Costs Day-one lot leverage plus construction escrow based on your budget.
No Junk Fees Transparent pricing. No hidden costs at closing. Non-recourse available.
Repeat Builder Programs Scaling your pipeline? We offer streamlined processing for repeat borrowers.

Get Your Custom Rate

We respond within one business day. Business-purpose loans only, not for primary or personal residences.

How It Works

How Construction Loans Work

A construction loan (also called a builder loan or new construction loan) is short-term financing that covers the cost of building a new home or developing a residential property. Unlike a traditional mortgage, construction loan funds are disbursed in stages as construction progresses.

Draw-based funding

Construction loans don't fund all at once. Your total loan is held in escrow and released in draws as you complete each phase of the build: foundation, framing, mechanical, finish. This protects the lender and keeps your project funded on schedule.

LTC and LTARV explained

Loan-to-Cost (LTC) measures how much of your total project cost is covered by the loan. Loan-to-After-Repair-Value (LTARV) measures the loan against the finished property value. We lend up to 90% LTC and 75% LTARV, meaning experienced builders can finance up to 90% of total project cost, covering all vertical construction costs.

Timeline and terms

Construction loan terms are typically 15 to 18 months, with extension options if needed. You pay interest only on the amount drawn, not the full loan amount. Once the build is complete, you sell the property or refinance into a permanent loan (DSCR or conventional).

Who qualifies

Licensed builders, experienced developers, and real estate investors building spec homes, custom homes, or build-to-rent properties. We evaluate the borrower, the project plan, and the local market. First-time builders can qualify by partnering with an experienced third-party general contractor, a program most private construction lenders don't offer.

How Ledger is different: We are a direct private construction lender, not a broker. Our capital comes from institutional sources, which means faster decisions, flexible draw schedules, and no middleman markup. We fund ground-up construction loans, builder loans, spec homes, new builds, and build-to-rent projects across 40+ states. There is no prepayment penalty, and non-recourse construction loans are available for qualified borrowers.

Eligibility

What You Need to Qualify for a Construction Loan

Construction loans, builder loans, spec home loans, and new construction financing share the same core requirements.

Eligible

680+ credit score
Single-family new construction
Townhomes and 2-4 unit builds
Spec homes and build-to-rent
Loans from $150K to $5M (residential only)
Entity borrowers (LLC, Corp)
First-time builders considered

Not Eligible

Owner-occupied primary residence
Commercial, mixed-use, or hospitality
Apartments or projects over $5M
Raw land with no build plan
Mobile or manufactured homes
Credit score below 680
No exit strategy or budget

Pricing Tool

Estimate Your Rate in 60 Seconds

Use our free calculator to see your estimated rate, loan amount, and costs — no login required.

Ground-Up Spec

$350K lot · $450K budget
720 FICO · 10+ deals

Rate: 9.250% · Loan: ~$600K

Fix & Flip

$250K purchase · $80K rehab
740 FICO · 5 deals

Rate: 9.750% · Loan: ~$295K

Bridge

$500K property
750 FICO · 10+ deals

Rate: 9.250% · Loan: ~$425K

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Common Questions

Construction Loan FAQs

Construction loans close in as fast as 21 days from completed application. We self-fund, so there's no waiting on third-party approvals or committee decisions. Repeat borrowers with clean builder loan files often close even faster.

No. These are business-purpose construction loans for builders and developers constructing homes for resale or rental. We do not finance primary or personal residences, or any home the borrower intends to occupy. Borrowers close in an LLC, LP, or corporation.

We underwrite the project and the builder. While experience matters for construction loan pricing, we evaluate the full picture: your track record, the project plan, and the market. First-time ground-up borrowers with strong plans are considered through our builder loan program.

Submit construction loan draw requests through our online Asset Management portal. We process draws in as fast as 48 hours. The draw schedule is set at closing based on your construction budget, so there are no surprises mid-project.

Minimum 680 FICO for most construction loan programs. Stronger credit scores unlock better construction loan rates and higher leverage. We look at the complete borrower profile, not just one number.

Yes. Ledger Trade & Capital is a national construction lender. We fund construction loans and builder loans across the country for single-family, townhome, and multi-unit residential projects.

Yes. Non-recourse construction loans are available for qualified borrowers with strong experience and project fundamentals. Discuss builder loan eligibility with our team when you submit your project details.

Construction loan rates depend on borrower experience, credit score, leverage, and project type. Experienced builders with strong credit and lower leverage typically receive the best builder loan pricing. Try our construction loan calculator to estimate your rate.