Finance the land. Fund the build. Deliver the project.
Ground-up construction loans for new 1–4 unit investment builds land acquisition plus vertical construction in one loan, with draws tied to your build milestones.
Up to 85% Total Loan-To-Cost Up to 70% Loan-To-ARV $200K-$3M Loan Amounts 18-24 Mo Interest Only Terms
Ground-Up Construction
Built for builders
One loan covers your site acquisition (or land refinance) and the full vertical build on entitled, permitted sites within metro markets. Interest accrues only on drawn funds, and your draw schedule is engineered around the project's real milestones — framing, rough-in, finishes, completion.
Renovating an existing structure instead? See Fix & Flip / Renovation — including expansions up to 20% of the existing footprint.
Program Details
Terms at a glance
Leverage
How much we lend
Land advance (day1) | Up to 65% LTV
Initial loan-to-cost | Up to 75%
Total loan-to-cost | Up to 85%
Loan-to-ARV | Up to 70%
Loan size | $200K - $3M
Structure
How the loan works
Base Term | 18 months
Larger Projects (>$1.5M) | 24 months
Extensions| 3-month increments
Payments | Interest-only, drawn balance
Rate | Fixed at closing
Contingency | 10% of budget
Takeovers
Mid-construction refinance
Started a build with another lender? Arcstone can refinance in-progress projects where construction began within the last 180 days — with verified lien waivers, permit checks, and a fresh appraisal to reset the project on solid footing.
Site Requirements
Eligible building sites
Your renovation budget is held back at closing and reimbursed as work completes. A third-party inspector verifies progress on each draw, and the schedule itself is designed around your project's milestones — not a one-size-fits-all template.
Sites should be ready for vertical construction with utilities available and land-use approvals in place. Building permit in hand — or in active application with a documented approval path — at closing. Raw, non-entitled land isn't eligible at this time.
Experience
For proven builders
Ground-up construction is our most specialized program. Qualifying requires prior ground-up experience — at least one completed new-construction project in the last 36 months — alongside your broader investment track record. Your builder resume determines leverage and loan size.
A licensed general contractor leads every project (owner-builders considered with licensed subs for major systems). A third-party feasibility review, Builder's Risk insurance, and assignable construction contracts protect the project — and you.
How It Works
From lot to certificate of occupancy
01
Apply
Submit your site, plans, construction budget, and GC package. A third-party feasibility review validates scope, cost, and timeline.
02
Close
Fund the land advance at closing with your construction budget escrowed and a milestone draw schedule locked in.
03
Build & draw
Draws release at verified milestones framing, rough-in, finishes with interest accruing only on funds released.
04
Complete & exit
Hit certificate of occupancy, release the final draw, and exit through sale or a stabilized rental refinance.
FAQ
Construction lending questions, answered
What does a ground-up construction loan cover?
The land acquisition (or a refinance of existing land debt) plus the full vertical construction budget — hard costs, approved soft costs like plans and permits, contingency, and interest reserves — in one loan with one closing.
How much experience do I need?
Ground-up lending requires ground-up experience: at least one completed new-construction project in the last 36 months, on top of your general investment track record. Builders with two or more recent ground-up completions qualify for our top leverage and loan sizes.
Do I pay interest on the full loan from closing?
No. Interest accrues only on your outstanding drawn balance — the land advance at first, then each draw as it's released. Committed but undrawn construction funds cost you nothing.
How are draws released?
Against completed, inspected work at pre-set milestones — typically framing, mechanical/electrical/plumbing rough-in, finishes, and completion. The schedule is customized to your project with our Construction Management team, and a third-party inspector verifies each stage.
What if my permit isn't issued yet?
You can close with the building permit application submitted and a documented approval path, with a portion of the budget held until the permit is in hand. The permit must be issued before your first construction draw.
Can I build on land I already own?
Yes existing land ownership works as equity in the deal, and seasoned lot equity counts toward your required contribution. We'll appraise the site and structure the construction budget around it.
Do you finance spec homes?
Yes. Spec builds for resale, build-to-rent projects, teardown-rebuilds, and small infill developments on 1–4 unit residential sites are all supported — as long as the site is entitled, permitted, and in a metro market.
What insurance is required?
Builder's Risk covering the remaining project costs is required on every construction loan, along with commercial general liability ($1M per occurrence) and workers' compensation carried by your GC per state law.