What is a ground-up construction loan?
Financing that funds a build from land through completion, released in milestone draws verified by inspection rather than as a lump sum. ACP Lending structures amounts generally from $100,000 to $10 million, at up to 85% of total project cost and up to 70% of completed value, with interest charged only on funds actually drawn.
Construction Financing From Land to Completion
ACP Real Estate Lending provides ground-up construction financing for non-owner-occupied residential investment projects. Financing can be structured around the project’s total cost, completed value, construction plan, and exit strategy, with construction funds advanced through controlled draws as work is completed.
What are ACP's construction loan terms?
| Loan amounts | Loan amounts generally from $100,000 up to $10 million, depending on the program and project scope |
| Payments | Interest-only payments during the construction term, charged only on funds actually drawn—not the full committed amount |
| Draws | Construction funds released through milestone-based draws, verified by inspection before each draw funds |
| Leverage | Leverage up to 85% of total project cost and up to 70% of after-repair/completed value on qualifying programs; borrowers with a track record of completed projects can access higher leverage |
| Strategies | Available for build-to-sell and qualifying build-to-rent strategies |
| Experience | New and experienced investors may be considered |
Experience Is Not Automatically Required
Lack of prior ground-up construction experience does not automatically disqualify a project. However, the experience of the borrower, general contractor, or builder can materially affect approval, leverage, pricing, required equity, reserves, and overall program fit—borrowers with a completed-project track record generally access meaningfully higher leverage than first-time builders. A strong construction team and a realistic, well-supported budget remain essential.
What We Review
Each project is reviewed individually, and available terms vary by capital partner. Some programs require a minimum credit score around 650; others weigh the asset and the builder’s experience more heavily than traditional credit and income documentation. Some programs use a standard appraisal-based valuation, while others rely on a technology-based valuation approach instead of a traditional appraisal. Underwriting generally includes the land purchase price or current basis, plans and specifications, permits or permitting status, detailed construction budget, project schedule, completed-value support, borrower credit and liquidity, builder or contractor credentials, contingency reserves, and a clearly defined sale or rental exit strategy.
Eligible Projects
Programs may accommodate single-family spec homes, infill construction, build-to-rent properties, and certain 2–4 unit residential projects. Property type, location, borrower profile, and construction complexity determine the available structure.
Ground-Up Construction Loan FAQ
What loan amounts are available for ground-up construction?
Generally from $100,000 up to $10 million, depending on the program and the scope of the project.
How is construction financing disbursed?
Funds are released through milestone-based draws as work is completed and verified by inspection, rather than in one lump sum. Interest is charged only on funds actually drawn.
Does my experience level affect the leverage I can get?
On some programs, yes. Borrowers with a track record of completed projects can access materially higher leverage than first-time builders, though new investors may still be considered.
Is an appraisal required?
It depends on the program. Some require a standard appraisal-based valuation; others use a technology-based valuation approach instead of a traditional appraisal.
What credit score is needed?
Requirements vary by program—some require a minimum credit score around 650, while others focus more heavily on the asset and the builder’s experience than on traditional credit and income documentation.
Request a Construction Quote
Send the property address, land purchase price or current basis, estimated construction budget, projected completed value, project type, construction experience, estimated credit score, and exit strategy. I will review the project and identify the most appropriate available structure.
Steve Waller | ACP Real Estate Lending | [email protected] | 936-522-8951
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