GROUND UP CONSTRUCTION LOANS

Non-Owner Occupied Single-Family Properties; Condos; Townhomes

Ground Up Construction FAQs

  • A ground-up construction loan is a short-term loan that provides funding to purchase the land (or refinance it) and cover the costs of building a new investment property from scratch — from the foundation to the final inspection.

  • Yes. We can finance:

    • The purchase or refinance of the land

    • The full construction budget ( in draws)
      As long as the deal fits within acceptable loan-to-cost (LTC) and after-completion value (ARV) guidelines, we’ll structure it to fit your needs.

  • We fund ground-up construction for:

    • Single-family homes

    • Small multifamily (2–4 units)

    • Larger multifamily (up to 9 units)

    • Spec homes and build-to-rent projects
      Let us know your end goal — resale, rental, or refinance — and we’ll guide you to the right structure.

  • Most ground-up construction loans require 20%–30% down based on the total project cost (land + construction).
    You’ll also need to show proof of reserves and have funds available to get the project started until your first draw is released.

  • Construction funds are released in phases (draws) as work is completed and inspected. You’ll submit a draw request, and once verified, we release the next portion of funds. We’ll walk you through how to prep for smooth inspections and fast releases.

  • Here’s what we’ll typically ask for:

    • Construction budget and scope of work

    • Construction timeline or schedule

    • Plans, permits, and specs (when available)

    • Lot purchase contract (or proof of ownership if refinancing)

    • Builder resume or GC info

    • Entity docs if using an LLC

    • Bank statements for down payment & reserves

    • ID + insurance quote

    We don’t need tax returns or W2s — just a solid plan and a viable deal.

  • No — you don’t need to be a licensed builder or contractor yourself, but you do need a solid team in place.

    Most lenders (including us) require you to hire a licensed general contractor (GC) with experience completing similar projects. If you’ve done previous deals, that helps — but even first-time developers can qualify as long as:

    • The numbers work

    • The contractor is reputable and licensed

    • The project plan and timeline are clear

    We’re here to help you structure it right and avoid common mistakes — even if this is your first build.

  • Yes — this is one of the smartest long-term wealth strategies out there.

    Many investors use a ground-up construction loan to build a rental property, then refinance into a DSCR loan once the build is complete and the property is rented. This allows you to:

    • Pay off the short-term construction loan

    • Lock in long-term financing

    • Start generating passive cash flow

    We’ll help you plan both phases — from blueprint to cash flow — and line up the refinance so there’s no downtime between finishing construction and pulling income.

  • We can typically close in 21-30 business days, depending on how quickly we receive your documents and how ready your project is.

    Here’s what speeds things up:

    • Your budget and scope of work are complete

    • You’ve selected a licensed general contractor

    • Plans, permits, and insurance quotes are ready or in progress

    • Your entity docs and proof of funds are in hand

    The more prepared you are, the faster we can move — and we’ll guide you every step of the way to avoid delays.

Let’s get this conversation started.

For immediate needs, text:
470.202.8412

info@abundantpathcapital.com

Atlanta, GA