Draw-based financing for residential new builds. Leverage your lot position with a construction escrow designed around your budget to take a project from start to completion.
Business-purpose financing for licensed builders and developers. Not available for primary or personal residences.
Our ground-up construction financing provides leverage to your finished lot position coupled with a construction escrow designed around your budget to take a project from start to completion. Whether you're building a single-family spec home, a townhome community, or larger tract development, we structure financing that matches your build timeline and budget.
As a combination loan, we provide a day-one advance of capital based on the current value of the lot followed by requested draws against a submitted construction budget. Our draw process is fast, transparent, and predictable through our Asset Management portal.
Our underwriting focuses on the project itself and the experience of the builder behind it. Building your first spec home? See our first-time builder program. Building for resale? See our spec home construction loans.
$150,000 to $5,000,000 per loan. Multi-loan structures available up to $10MM ($20MM case by case).
15-18 months with extension options
As fast as 21 days
As fast as 48 hours
42 states plus Washington, D.C. Top markets: NC, SC, VA, OH, FL, TX.
Tell us about your project and we'll be in touch within one business day. Business-purpose loans only, not for primary or personal residences.
Thank you — our team will be in touch within one business day.
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.
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.
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.
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).
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 GC, 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 limited recourse construction loans are available for qualified borrowers.
Construction loans, builder loans, spec home loans, and new construction financing share the same core requirements.
Ground-up construction financing available in 40+ states. See state-specific builder programs and market details.
See current construction loan rates from 8.875%