Ground-Up Construction Loans
From the Ground Up: Your Guide to Financing New Construction Projects
When the stakes rise, so should your standards. Ground-up projects need the right financing partner. That's where construction loans come into play. Unlike traditional mortgages, ground-up construction loans finance the entire building process, from purchasing vacant land to completing the final structure. Whether you're a builder, developer or seasoned investor, these loans provide the flexibility and capital you need to bring new projects into reality.
At Rain City Capital, we specialize in ground-up construction hard money loans. Our team understands the unique challenges of new construction and is committed to supporting you through the process with confidence. If you're ready to break ground on a new project, discover how Rain City Capital can be your trusted partner from start to finish.
How Do Ground-Up Construction Loans Work?
Ground-up construction loans are short-term financing solutions that cover the costs of undertaking a new build, including permits, materials, and labor. With a ground-up construction loan, you receive funding in stages, also known as a draw schedule, rather than as a single lump sum. As construction milestones are reached, like completing the foundation, framing or final finishes, funds are released to cover those specific costs. This method helps ensure that your project stays on track and that funds are used efficiently.
A key concept in ground-up construction financing is Loan-to-Cost (LTC), which measures the percentage of your project's total cost that can be financed. For instance, if your project costs $1,000,000 and your lender offers an 80% LTC, you would be able to borrow up to $800,000. The remaining costs would typically be covered by your own capital or equity.
It's important to know that ground-up construction loans are short-term solutions, usually lasting between 12 and 24 months. When construction is complete, the loan is either paid off through the sale of the property or refinanced into a long-term mortgage.
Whether you're building a single-family home, a multifamily development or a commercial property, ground-up construction loans—and ground-up construction hard money loans—offer the flexibility and control you need to complete your project.
Who Is the Ideal Candidate for a Construction Loan?
Ground-up construction loans are ideal for experienced builders, real estate developers and seasoned investors with a proven track record of successful construction projects. Lenders typically look for borrowers who understand the complexities of new construction and can demonstrate the ability to manage timelines, budgets and contractors confidently.
Ideal candidates for ground-up construction loans often have experience with similar projects, a solid business plan and the financial resources to cover their share of the project costs. A history of successful builds can help you secure favorable terms and streamline the approval process.
These loans are also favorable for investors who want to take on larger or more complex projects that require flexible financing solutions. If you have the experience and you're ready to break ground, a ground-up construction loan could be the perfect tool to help you reach your goals.
The Rain City Capital Advantage for New Construction
When financing new construction, the right lending partner can make all the difference. Rain City Capital is a trusted partner for investors, offering ground-up construction loans, ground-up construction hard money loans and ground-up commercial construction loans. Our team has deep experience in construction financing and a commitment to supporting builders and developers at all stages of the process.
Rain City Capital provides flexible loan terms tailored to your project's unique needs. Our draw process keeps you in charge, allowing you to set your own milestones on reimbursement. We understand that every project is different, which is why we offer personalized service and quick decision-making to help you break ground without unnecessary delays.
With our local market knowledge and hands-on approach, you'll have a partner who understands the challenges and opportunities in your area. From the initial application to the final draw, Rain City Capital is here to make your construction experience as smooth as possible. If you're looking for a lender who values your vision and has the expertise to help you achieve it, Rain City Capital is ready to be your partner in building from the ground up.
Build Your Next Project With Rain City Capital
Every successful construction project begins with the right financing. Whether you're a builder, real estate developer or an investor ready to take on your next big opportunity, Rain City Capital is here to help you turn your vision into reality. With our experience in ground-up construction loans, you'll gain the benefit of our expert advice and flexible solutions.
If you're ready to break ground on your next project, contact our expert team at Rain City Capital to discuss your next steps and learn more about how our construction loan solutions can help you build with confidence. Or, apply now to start.