How does residential ground-up construction financing work?

Lenders fund land (if needed) plus construction draws based on inspection milestones, then convert or refinance to permanent financing at completion. Builder experience, plans/specs, and contingency reserves are heavily scrutinized.

Do I need a general contractor already under contract?

Almost always. Licensed GC agreements, budget, and timeline are core underwriting items. Owner-builder programs exist but are rarer and tighter.

Investor & Bridge

Construction

Ground-Up Construction (Residential)

Name: Elite Fundings — California Mortgage Team
Address: 552 E Badillo St, Covina, CA, 91723, US
Telephone: (626) 833-7449
Price range: $$

Construction financing for spec builders or owner-occupant new builds.

Available throughout Southern California through Francisco Williams, CCIM, NMLS #1858674.

Apply for this program (626) 833-7449

680

Min FICO

80%

Max LTV

Ideal borrower

Spec builders or owners building a custom home.

Program highlights

Land + construction in one loan
Interest-only during construction
Draw schedule tied to build phases
Spec and owner-occ variants

Typical uses

New-construction spec
Custom home build

Frequently asked questions

How does residential ground-up construction financing work?: Lenders fund land (if needed) plus construction draws based on inspection milestones, then convert or refinance to permanent financing at completion. Builder experience, plans/specs, and contingency reserves are heavily scrutinized.
Do I need a general contractor already under contract?: Almost always. Licensed GC agreements, budget, and timeline are core underwriting items. Owner-builder programs exist but are rarer and tighter.

Program details shown are representative guidelines and subject to individual lender overlays and CFPB / agency requirements. Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.