Ground-Up Construction

Construction Loans in Florida

Financing to build from the ground up. Milestone-based disbursements, interest only on drawn funds.

Draw Process

A construction loan works with a draw system: partial disbursements released as the project reaches predefined milestones. You only pay interest on the amount disbursed, optimizing your financing cost.

1

Draw Request

The builder requests a disbursement upon completing a construction milestone (foundation, framing, roof, etc.).

2

Inspection

An inspector verifies that the work was completed according to plans and standards.

3

Approval

Once progress is verified, the fund release is approved.

4

Disbursement

Funds are transferred to cover the costs of the next construction phase.

Project Phases

The 4 typical phases of a ground-up construction project in Florida

1

Land Acquisition

Month 1-2

You purchase the lot and we conduct due diligence: soil, survey, zoning.

2

Permits & Design

Month 2-6

Architectural plans, engineering, and municipal approval.

3

Construction

Month 6-18

From foundation to finishes with draws based on progress inspections.

4

Sale or Refinance

Month 18-24

Certificate of Occupancy, list on market or refinance into a DSCR loan.

Real Deal Example

Single-family home in Cape Coral — new construction

Cape Coral, FL — Lot + SFH 3/2 construction with pool

Land$95,000
Permits & design$28,000
Construction$385,000
Financing costs$60,000
Total investment$568,000
Estimated sale price$700,000
Estimated profit$132,000

Typical Terms

Standard conditions for our construction loans in Florida

Term

12-24 months

Based on project scope

LTC

Up to 75%

Of total project cost

Rate

From 10%

Based on experience and project

Disbursement

Via draws

Interest only on amount used

Frequently Asked Questions

How do draws work?

Funds are disbursed in stages (foundation, framing, roof, etc.). Each draw requires a progress inspection before releasing funds. You only pay interest on the amount disbursed.

Can I build as a foreign national?

Yes, through a US LLC. No SSN or residency required. Many Latin American investors build in Florida using this structure.

What if construction is delayed?

Timelines include buffers. We can extend if there's reasonable justification. The key is communication and transparency about progress.

Can I refinance into a long-term loan when finished?

Yes, many builders refinance with a DSCR loan to keep the property as a rental. This is the build-to-rent strategy.

Do you only finance residential construction?

Primarily single-family and small multifamily (duplex, triplex, fourplex). For larger commercial projects, we evaluate on a case-by-case basis.

Have land or a construction project?

Let's talk about how to finance your build from the first draw to delivery.