Asset Lift Lending

    Build from scratch with confidence. Our construction loans cover land, permits, and vertical build costs so you can focus on delivering a finished product.

    Ground-Up Construction Loans

    AssetLift Lending provides ground-up construction loans for residential builders and investors. Fund land acquisition, vertical construction, and project completion with a single loan from a dedicated construction lender.

    Apply Now Call (929) 639-2284
    Up to 85%
    Loan-to-Cost (LTC)
    Up to 70%
    Loan-to-Completed Value
    12 to 24 months
    Loan Term
    $150,000
    Minimum Loan Amount
    10.5%
    Interest Rates Starting At

    Overview

    Ground-up construction loans are specialized financing products that fund the entire lifecycle of a new residential build, from land acquisition through vertical construction to project completion. Unlike fix-and-flip loans that finance the purchase and renovation of existing structures, construction loans are designed for vacant lots, teardowns, and entitled land parcels where the borrower intends to build a new residential property from the foundation up.

    AssetLift Lending's construction program finances up to 85% of the total project cost, including land purchase, permits, site preparation, and all hard and soft construction costs. Funds are disbursed through a carefully managed draw schedule tied to construction milestones, ensuring that capital is released only as work progresses. This protects both the borrower and the lender by maintaining alignment between the money deployed and the value created at each stage of the build.

    Our construction underwriting team evaluates every project based on the completed value of the finished home, the borrower's construction experience, the qualifications of the general contractor, and the strength of comparable sales in the target market. We finance single-family spec homes, custom builds, townhome developments, and small multifamily projects of up to four units. Projects must be located in markets with demonstrable demand for new construction and sufficient comparable sales data to support the projected completed value.

    Ground-up construction is the most capital-intensive and complex segment of residential real estate investing, but it also offers the highest potential returns. Building a new home allows the investor to create value from raw materials rather than being limited by the existing structure and layout of a renovation property. For experienced builders and investors ready to take on the challenge, AssetLift Lending provides the capital, structure, and support to bring projects from blueprint to certificate of occupancy.

    Key Features

    Land and Construction in a Single Loan

    Finance the land acquisition and the entire construction budget under one loan, eliminating the need to secure separate land financing and a construction line. This simplifies your capital stack, reduces closing costs, and provides certainty of funding from day one through project completion.

    Milestone-Based Draw Schedule

    Construction funds are released according to a pre-agreed draw schedule aligned with key construction milestones: foundation, framing, rough mechanicals, drywall, and final finishes. Each draw is verified by a third-party inspector before funds are released, ensuring accountability and protecting the project budget.

    Interest-Only Payments on Drawn Funds

    You pay interest only on the portion of the loan that has been disbursed, not the full loan amount. In the early stages of construction when only a fraction of the budget has been drawn, your monthly payments are proportionally lower. This preserves your cash flow during the capital-intensive build phase.

    Experienced Construction Underwriting

    Our underwriting team includes professionals with direct experience in residential construction lending. We understand construction timelines, builder risk factors, and market absorption rates. This expertise allows us to structure loans that align with realistic project schedules rather than applying generic timelines that do not reflect the realities of new construction.

    Flexible Exit Options

    Sell the completed home to a retail buyer, refinance into a long-term rental loan if you decide to hold, or roll the finished property into a portfolio refinance. Our construction loans carry no prepayment penalties, giving you full flexibility to choose the most profitable exit based on market conditions at the time of completion.

    Eligibility Requirements

    Construction Experience: Borrowers must demonstrate prior experience managing residential construction projects, either as a licensed builder, developer, or investor who has completed at least 2 ground-up builds. First-time builders are considered on a case-by-case basis if partnered with an experienced, licensed general contractor with a verifiable track record.
    Licensed General Contractor: All projects must be managed by a licensed general contractor with current insurance coverage (general liability and workers compensation) and a portfolio of completed residential builds. The GC's qualifications are underwritten alongside the borrower's profile, and their experience level directly impacts loan approval and pricing.
    Approved Plans and Permits: Architectural plans, engineering drawings, and all required building permits must be obtained or in active review before the loan closes. Projects that have not yet begun the permitting process may be approved with a delayed closing contingency that holds the rate and terms while permits are finalized.
    Minimum Credit Score: A FICO score of 660 or higher is required for the primary borrower or guarantor. Credit scores above 700 qualify for preferred pricing. The credit review also includes an examination of the borrower's construction-related liabilities, outstanding liens, and any history of contractor disputes or project defaults.
    Down Payment and Reserves: A minimum equity contribution of 15% of the total project cost is required. This can be in the form of cash, land equity (if the lot is already owned), or a combination. Borrowers must also demonstrate liquid reserves sufficient to cover 3 to 6 months of interest payments as a cushion against construction delays.

    How It Works

    1

    Project Submission and Feasibility Review

    Submit your project package including architectural plans, a detailed construction budget, the general contractor's credentials, and comparable sales for the target market. Our team conducts a feasibility review within 48 hours, evaluating the project's completed value, market demand, and overall risk profile before issuing a term sheet.

    2

    Underwriting and Due Diligence

    Upon term sheet acceptance, we commission a full appraisal based on the proposed plans and specifications, review the title report and zoning compliance, verify the general contractor's license and insurance, and complete a background and credit review of the borrower. This phase typically takes 10 to 14 business days.

    3

    Closing and Initial Funding

    At closing, the land acquisition cost (if applicable) and initial soft costs (permits, architectural fees, site preparation) are funded. The remaining construction budget is held in a controlled escrow account and released through the draw process. You begin construction immediately after closing with full certainty that the remaining funds are committed.

    4

    Construction Draws and Project Completion

    As each construction milestone is reached, submit a draw request with supporting documentation (invoices, photos, lien waivers from subcontractors). A third-party inspector verifies the completed work, and funds are released within 3 to 5 business days. Upon project completion, you obtain a certificate of occupancy and execute your exit strategy: sale, refinance, or lease.

    Who Is This For?

    Spec Home Construction

    Build a new single-family home on a vacant lot for resale to a retail buyer. Spec homes in high-demand submarkets with limited new inventory can command premium pricing and sell quickly, generating returns that exceed typical renovation projects because every element of the home is new and under warranty.

    Teardown and Rebuild

    Purchase a functionally obsolete home on a valuable lot, demolish the existing structure, and build a modern home that aligns with current buyer preferences and neighborhood comps. Teardown-rebuild projects are common in established neighborhoods where land values are high but existing housing stock is outdated.

    Infill Development

    Develop underutilized lots within established neighborhoods, building new homes that fill gaps in local housing supply. Infill projects often face less competition than greenfield development and benefit from established infrastructure, school zones, and neighborhood amenities that support premium pricing.

    Small Multifamily New Construction

    Build duplexes, triplexes, or fourplexes in markets with strong rental demand. New construction multifamily properties command top-of-market rents, require minimal near-term maintenance, and appraise favorably for refinancing into long-term DSCR loans after completion and lease-up.

    Frequently Asked Questions

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    Apply for Ground-Up Construction Loans - Finance New Builds from the Ground Up