New Construction Financing
Ground-up construction financing for residential and small commercial projects with experienced builder programs.
Draw-Based
Funds released at each milestone
Project Focused
Plans, permits, and budget driven
Land + Build
Single loan covers the full project
Flexible Exit
Sell or refinance at completion
Construction financing is structured around project milestones. Capital is released as work progresses — keeping your budget aligned with build completion.
Plan
Permits, budget, and builder ready
Foundation
First draw at groundbreak
Build
Draws released at each stage
Complete
Certificate of occupancy issued
Exit
Sell or refinance into DSCR
Loan Overview
New construction financing provides the capital you need to build residential properties from the ground up. Whether you're building spec homes, small multi-family properties, or build-to-rent projects, construction loans are structured around draw schedules aligned with completed milestones.
Ideal For
- Experienced home builders and developers
- Spec home and build-to-rent projects
- Small multifamily new construction
- Land owners ready to build
- Builders with proven track records
Ready to Build?
Submit your project plan and we'll connect you with the right construction capital partner.
New construction financing provides the capital you need to build residential properties from the ground up. Whether you're building spec homes, small multi-family properties, or custom residences, we offer construction-to-permanent financing with competitive terms and experienced builder programs.
Land + Construction Funding
Finance land acquisition and construction costs in a single comprehensive loan.
Experienced Builder Benefits
Streamlined approval and better terms for builders with proven track records.
Flexible Draw Schedules
Construction draws aligned with building milestones and inspection schedules.
Multiple Exit Options
Refinance, sell, or convert to permanent financing upon completion.
Key Benefits
Representative Terms for This Loan Program
These terms are representative only and not a commitment to lend. Actual terms vary by deal, property, borrower, and market conditions.
Strategic Capital.
Structured Right.
Loan Amount
$200K - $5M+
LTC
Up to 80%
Term
18-24 months
Rate
9-12% range
Credit Score
680+ minimum
Experience
Required
Property Type
Residential, multi
Closing Time
14-21 days
Representative only. Final terms subject to underwriting.
Ideal For
Our Process
Submit Project Details
Provide land details, construction plans, budget, timeline, and builder experience.
Underwriting Review
We analyze the project feasibility, builder credentials, and market conditions.
Approval & Closing
Receive approval and close on the construction loan with initial land/pre-development funding.
Construction Draws
Receive funds at key construction milestones following inspections.
Related Resources
New Construction Financing Guide
Complete guide to financing ground-up construction projects from land acquisition to completion.
What Makes a Deal Fundable
Learn the key factors that determine whether your construction project will get approved.
Bridge Loan Alternatives
Short-term bridge financing options for construction and development projects.
New Construction Financing — Common Questions
Answers to questions builders and developers frequently ask before exploring ground-up construction financing.
What is new construction financing?
New construction financing (sometimes called a ground-up construction loan) is a short-term loan that provides capital to build a property from the ground up. Unlike a standard purchase or refinance loan, construction financing is typically disbursed in draws as work progresses through defined milestones rather than as a lump sum at closing. The loan is usually interest-only during the construction period, with the principal repaid upon completion through a sale or a permanent refinance.
What do funding partners usually look for in a ground-up construction deal?
Capital partners reviewing construction loan scenarios typically evaluate the builder's experience and track record, the completeness and realism of the construction budget and timeline, the loan-to-cost ratio, the projected end value of the completed asset, and the intended exit strategy. A detailed scope of work, a licensed general contractor, and permits in hand or in process can all strengthen a submission. Builder experience is weighted heavily in most ground-up programs. First-time builders typically face higher scrutiny.
Can land acquisition and construction costs be part of the same capital plan?
In some loan structures, yes. A single construction loan can cover both land acquisition and the cost to build. Whether a lender will finance land as part of the construction package depends on the deal specifics, the loan-to-cost relative to the completed value, and whether the land is already owned or being purchased simultaneously. If land is already owned free and clear, it may serve as equity in the deal structure. Each scenario is reviewed individually by the capital partner.
How are construction draws typically handled?
Construction draws are the mechanism by which loan proceeds are released to the builder as work is completed. Rather than receiving the full loan amount at closing, the borrower submits draw requests at defined milestones (foundation, framing, rough mechanicals, and so on) and the lender or a third-party inspector verifies the work before releasing funds. Draw schedules vary by lender and project type. Understanding the draw process before closing is important for managing cash flow during construction.
What should investors prepare before submitting a construction financing scenario?
Before submitting, it helps to have a clear project description, the land address or parcel details, a construction budget with line-item detail, a projected timeline, the builder's credentials and prior completed projects, and the intended exit strategy (sale or refinance). If permits are in place or construction plans are finalized, including those materials strengthens the submission. Ascension Private Capital reviews construction scenarios in advance to help assess how a capital partner is likely to evaluate the deal and whether the structure is ready for submission.
Markets We Serve
Ascension Private Capital works with real estate investors across key U.S. markets. Financing availability and deal requirements vary by state and asset type.
View all markets — Financing options are subject to deal review, capital partner availability, and applicable requirements.
Capital Strategy Review
Ready to Get Started?
Submit your deal details and receive a preliminary decision within 24-48 hours. Our team is ready to review your opportunity.
Review Focus
- Deal structure
- DSCR or bridge fit
- Timeline and exit path
- Capital stack risk