New construction loans that fund the build, draw by draw.
A new construction loan is short-term, draw-based financing for ground-up builds — releasing capital in stages as each phase passes inspection. LGV Capital works with builders and developers to fund the project based on its scope and completed value — not your personal income.
- Up to 85% of cost financed. Land, materials, and labor across the full build.
- Draws release on schedule. Funds clear within days of each inspection, not weeks later.
- Built for builders and developers. Spec homes, multifamily, townhomes, and subdivisions.
- Asset-based underwriting. LGV Capital lends on the project, not your tax returns.
Your capital releases as you build.
Construction loans don't fund all at once — they release in draws as each phase completes. Tap a stage to see how your capital flows from closing to completion.
Land acquisition & closing
We fund a portion of your land or lot at closing and set aside the full construction budget in a controlled draw account. You start the build with capital already committed — not chasing approvals mid-project.
Draw structures vary by project scope, builder experience, and loan size. The stages above illustrate a typical ground-up residential build — your actual schedule is set in your term sheet.
Construction Loan Requirements & Eligibility
These are the standard parameters used to evaluate ground-up construction projects. Final terms vary based on project scope, builder experience, and exit strategy.
Finance land plus the full construction budget — labor and materials included.
Leverage based on the completed, after-built value of the finished project.
From single spec homes to multi-unit and subdivision developments.
Interest-only during construction, with extension options on larger builds.
Funds release as each phase passes inspection — typically within days of sign-off.
Experienced developers and first-time builders with a qualified GC both qualify.
Why builders choose LGV Capital for construction loans
A construction loan from LGV Capital funds ground-up builds in inspection-based draws, with leverage on total project cost rather than personal income. From single spec homes to full subdivisions, financing is structured around the project in front of you — select a build type to see how it works.
Single spec homes, lot to listing
Build to sell. LGV Capital funds the lot and the full construction budget for detached spec homes, releasing draws as each phase clears so your subs stay paid and your build stays on schedule.
What you get
- Up to 85% loan-to-cost on land plus vertical construction.
- Interest-only payments during the build. Pay on drawn funds only.
- Exit by sale, or roll into a DSCR loan to hold as a rental.
Spec Home Parameters
Ground-up multifamily, structured for scale
Build 2–20+ unit projects with financing sized for larger budgets and longer timelines. Qualification is based on completed value and project economics, not your personal income.
What you get
- Larger loan sizes up to $5M for multi-unit ground-up builds.
- Extended terms with extension options for complex builds.
- Exit to a DSCR multifamily loan and hold the income.
Multifamily Parameters
Townhome rows & subdivision phases
For developers building multiple attached units or releasing lots in phases, LGV Capital structures financing that funds the whole project while letting you sell or refinance units as they complete.
What you get
- Phased draw structures aligned to multi-unit build timelines.
- Partial release options as individual units sell or close.
- Capital that scales with the development, not against it.
Subdivision Parameters
First-time & owner-builders, with the right team
Newer to ground-up? You can still build with LGV Capital. With a qualified general contractor and a solid project, first-time builders qualify for the same draw-based financing as seasoned developers.
What you get
- Licensed GC requirement stands in for builder track record.
- Hands-on draw guidance through your first build.
- Conservative leverage that protects you on your first project.
Owner-Builder Parameters
LGV Capital vs. Bank Construction Loans
| Factor | LGV Capital Construction Loan | Bank Construction Loan |
|---|---|---|
| Qualification basis | Project & asset strength | Personal income + financials |
| Income verification | Not required | Full tax returns & W-2s |
| Time to close | ~2–3 weeks | 45–90+ days |
| Draw turnaround | Days after inspection | Often 2–4 weeks |
| Entity / LLC vesting | Yes — fully supported | Rarely allowed |
| First-time builders | Yes, with qualified GC | Usually declined |
| Max leverage | Up to 85% LTC | Typically 70–75% |
| Best for | Builders who need speed | Long-term bank clients |
For builders breaking ground.
Financing that funds the project the way you actually build it — phased, fast, and structured around the work, not the paperwork.
How to fund your build with LGV Capital
From first conversation to first draw — a process built for builders who need to break ground, not battle paperwork.
Submit Your Project
Share the lot, your budget, and your build plan. Takes just a few minutes — no documentation to start.
Project Review
We evaluate the build, the budget, and the projected completed value to size your loan and draw schedule.
Term Sheet Issued
You receive your leverage, draw structure, and terms in writing — typically within 24 hours.
Close & First Draw
Close, fund your lot, and break ground with construction capital committed from day one.
Common construction loan questions
Straight answers on how ground-up financing works with LGV Capital.
A construction loan releases funds in stages called draws, rather than all at once. As each phase of the build completes and passes inspection — foundation, framing, finishes — the corresponding draw is released to reimburse the work. You only pay interest on funds that have actually been drawn.
LGV Capital finances up to 85% of total project cost (loan-to-cost) and up to 70% of the after-built value (loan-to-ARV), whichever is the limiting factor. Final leverage depends on project scope, builder experience, and exit strategy. Request a term sheet for numbers specific to your build.
Yes. First-time and owner-builders can qualify when paired with a licensed, experienced general contractor. The GC's track record stands in for builder experience, and LGV Capital provides hands-on guidance through your first draw schedule.
Once a phase passes inspection and the draw request is submitted, funds typically release within a few business days — not the two to four weeks common with bank construction loans. Fast draws keep your subcontractors paid and your timeline on track.
At completion you exit the construction loan one of two ways: sell the finished property, or refinance into a long-term hold. Many investors roll directly into an LGV Capital DSCR loan to keep the property as a rental — one partner from ground-up through stabilized hold.
No. Our construction loans qualify on the project — the build budget, the completed value, and the strength of the deal — not on your personal W-2s or tax returns. LGV Capital works with investors and builders, including those vesting in an LLC or entity.
LGV Capital funds ground-up residential and small commercial builds: single spec homes, 2–20+ unit multifamily, townhome rows, and phased subdivisions. All projects are non-owner-occupied and built for investment — sale or rental hold.
Still have questions about your build?
Trusted by builders and developers
"The thing that mattered most on my spec build was draw speed. Other guys had me waiting weeks to get reimbursed and my subs were getting antsy. LGV turned draws around in days. That alone kept the project on schedule."
Funded: $620K Spec Home · Austin, TX"This was my first ground-up project and I was nervous about financing. LGV walked me through the whole draw process with my GC and made it feel manageable. They funded on cost, not on hoops, and I'll be back for the next one."
Funded: $410K First Build · Boise, ID"We build townhome rows and needed a partner who understood phased releases — sell a unit, release the lien, keep building. Most lenders couldn't structure it. LGV did, and the partial-release setup kept our capital working the whole project."
Funded: $2.8M Townhome Development · Nashville, TN