What is the maximum leverage on a construction loan?

New construction loans are available up to 90% of loan-to-cost (LTC) and 75% of the loan-to-after-repair-value (LTARV). Leverage depends on borrower experience, credit score, and the overall project profile.

Ground-Up Construction Loans: 90% LTC, From 9.00%

How It Works

Lot Advance on Day One, Draws as You Build

A ground-up construction loan funds a new residential build in stages. Ledger advances against the finished lot on day one, then funds construction draws against the approved budget as work is inspected. Interest accrues on drawn funds only. Up to 90% LTC, rates from 9.00%.

We lend on the finished lot plus a construction escrow sized to your budget. Single-family spec homes, townhome communities, small multifamily (2 to 4 units), and build-to-rent all fit. Leverage is sized on loan-to-cost (LTC) and LTARV: up to 90% of total project cost and 75% of the finished value.

Draw terms

The draw schedule is set at closing from your Schedule of Values, so there are no surprises mid-build.
Submit draw requests through our Asset Management portal. A third-party inspector verifies work in place.
Approved draws fund in as fast as 48 hours. Most builds use 4 to 6 draws.
Interest-only on the drawn balance during the build. We can size an interest reserve into the loan.
No prepayment penalty. Sell the home or refinance into a DSCR rental loan when the build is done. Holding the home? See how the build to rent loan pairs this loan with the rental refinance.

See a sample draw schedule with the interest-only math. Building your first spec home? Your GC's track record can qualify the deal through our first-time builder program. Building for resale? See our spec home financing for builders. Running several lots at once? See builder line of credit vs project-based construction loans.

Get Started

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Tell us about the project and we'll reply within one business day with terms. Business-purpose loans only, not for primary or personal residences.

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Project Overview

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Ground-Up Construction Loan Summary: Ledger Trade & Capital funds ground-up construction loans from $150K to $5M (multi-loan structures up to $10M+). Up to 90% loan-to-cost and 75% LTARV. Rates from 9.00%. Terms of 15 to 18 months with extension options. Close in as fast as 21 days. Draws funded in as fast as 48 hours, interest-only on the drawn balance, no prepayment penalty. Minimum 680 credit score (700+ for 90% LTC) and 5 completed projects in the last 3 years, or a first-time builder with an experienced GC. Business-purpose only, not available for primary residences. Available in 45 states plus Washington, D.C.

Eligibility

What You Need to Qualify

We underwrite the project and the builder behind it. Licensed builders, experienced developers, and investors building spec homes, custom homes, or build-to-rent all qualify.

Eligible

680+ credit score (700+ unlocks 90% LTC)
Single-family new construction
Duplex, triplex, fourplex and townhome builds
Teardowns, infill and scattered-site projects
Spec homes and build-to-rent
Loans from $150K to $5M (residential only)
Entity borrowers (LLC, Corp)
First-time builders with an experienced GC

Not Eligible

Owner-occupied primary residence
Commercial, mixed-use, or hospitality
Apartments or projects over $5M
Raw land with no build plan
Modular, prefab, manufactured, mobile, tiny, barndominium, kit, or container homes (stick-built only)
Credit score below 680
No exit strategy or budget

Program Details

Ground-Up Construction Loan FAQ

Our construction loans are designed for builders with experience completing residential projects. You should have a clear scope of work, an itemized budget, and a realistic timeline. Whether you're building your 5th home or your 50th, we structure terms that make sense for where you are in your business.

No. These are business-purpose 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.

New construction loans are available up to 90% of loan-to-cost (LTC) and 75% of the loan-to-after-repair-value (LTARV). Learn the difference between LTC, LTV, and LTARV. Leverage depends on borrower experience, credit score, and the overall project profile. Funds are released through a draw schedule tied to construction milestones.

The minimum credit score for new construction loan programs is 680. We evaluate the full picture including the project, the builder's track record, and the market when making lending decisions.

Construction loan borrowers should have completed at least 5 residential construction or renovation projects within the last 3 years. Builders with deeper experience may qualify for improved leverage and pricing. Building your first spec home? See our first-time builder construction loan program.

Yes, limited recourse options are available on new construction loans for qualifying borrowers and projects. Standard carve-outs apply. Our team can walk you through the limited recourse structuring process.

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.

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.

Yes. Ledger Trade & Capital is a national construction lender. We fund construction loans and builder loans across 45 states plus DC for single-family, townhome, and multi-unit residential projects.

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.

Ground-Up Construction Loans