Ground Up Construction Loans
The swift and respectful banking alternative for building new real estate from the ground up.
A Ground Up Construction (GUC) loan finances the creation of a brand-new property from start to finish. This includes funding the land purchase (when needed) and the complete cost of vertical construction such as materials, labor, permits, and inspections. These loans give builders and investors the capital structure needed to bring new developments to life without using large amounts of upfront cash.
At Essential Capital TW, we support ground up construction projects by offering funding solutions that emphasize clarity, speed, and respect for your timeline. Whether you are building your first investment property or expanding your development portfolio, we help make the process smoother, more predictable, and more aligned with your goals.
What Is a Ground Up Construction Loan
Why Investors Choose Ground Up Construction Loans
Ground up construction requires planning, teamwork, and reliable financing. Investors rely on construction loans because they provide structured support and flexible funding throughout each stage of the build.
Key benefits include:
Financing that covers both land and construction
Interest only payments during the construction phase
Capital delivered through draws based on work completed
Loan amounts tied to the project’s future value (ARV)
A structure built specifically for new development timelines
Fast, clear communication from a lending team who supports your vision
You can build confidently knowing that your financing is aligned with your construction schedule.
How Ground Up Construction Loans Work
Construction loans operate differently from traditional mortgages. Instead of receiving all the funds at once, you receive them in stages as construction progresses. This ensures the project stays on track and funds are used efficiently.
Most GUC loans include:
Short term durations of 12 to 24 months
A detailed construction plan and budget
Draws released after third-party inspections confirm progress
Interest only payments on the amount drawn, not the full loan
Final payoff through sale, refinance, or permanent financing
This structure helps preserve cash flow while ensuring that your project receives steady support throughout the build.
Approval Based on Project Potential
Unlike traditional residential loans, construction loans prioritize the potential value of your completed project. Lenders evaluate several important components:
After Repair Value (ARV) of the finished property
Builder qualifications and experience
Detailed architectural plans and scope of work
Project timeline and budget
Land value and planned improvements
By reviewing these factors, lenders gain confidence in the overall project, ensuring the funding aligns with both the property’s value and your development goals.
Common Uses for Construction Financing
Ground up construction loans support a wide range of development projects, including:
Single family new builds
Duplexes, triplexes, and fourplexes
Build-to-rent communities
Multifamily construction for larger scale developments
Small to mid-size commercial builds
Investment properties designed for long term rental income
If you have a clear plan, a qualified builder, and a strong vision for your finished project, construction financing can help bring that vision to life.
Investor-Friendly Terms and Flexibility
Essential Capital TW works with lenders who understand the complexities of new development. You can expect:
Competitive ARV-based loan amounts
Draw schedules that align with your construction milestones
Funding for both land and vertical construction
Options for interest only payment periods
Flexible terms for investors and developers
Support for properties held in investment entities or LLCs
We help you navigate the full process and choose the right structure so your project remains financially stable from start to finish.
Why Work With Essential Capital TW
Investors choose us because we take pride in being direct, responsive, and respectful at every step. Private lending does not have to feel complicated or overwhelming. We communicate clearly, set expectations up front, and help you understand exactly what you need to close your deal quickly.
You will always receive:
Honest timelines
Transparent communication
Straightforward requirements
Support that respects your time and investment goals
We understand that speed matters. Respect matters. Trust matters. And we operate with all three.
Is a Ground Up Construction Loan Right for You
This loan option may be a perfect fit if you:
Are starting a new residential or commercial build
Need financing for both land and construction
Prefer interest only payments until completion
Want loan amounts based on the future value of the project
Have a clear scope of work, timeline, and qualified builder
Want a lending partner who communicates clearly and moves at your pace
If you are ready to build, this loan structure supports every step of the process.
Ready to Move Forward
If you have plans, a property, or even an idea you’re exploring, Essential Capital TW can walk you through the options and help you understand the best path forward. A simple conversation can clarify next steps and position your project for success from day one.