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.
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.
| Land advance (day 1) | 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 |
| 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 |
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.
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.
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.
Submit your site, plans, construction budget, and GC package. A third-party feasibility review validates scope, cost, and timeline.
Fund the land advance at closing with your construction budget escrowed and a milestone draw schedule locked in.
Draws release at verified milestones (framing, rough-in, finishes) with interest accruing only on funds released.
Hit certificate of occupancy, release the final draw, and exit through sale or a stabilized rental refinance.
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, all in one loan with one closing.
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.
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.
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.
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.
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.
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.
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.
Send us your site and your plans, and we'll structure construction capital around your build.