Business-Purpose Ground-Up Construction Financing.

Financing for Ground-Up Construction and Development Projects.

This is business-purpose financing for builders and developers constructing new residential, multifamily, or small commercial projects. Purchase-and-build, refinance of land already owned, or construction-to-permanent structures may be available, subject to underwriting and program requirements.

GROUND-UP CONSTRUCTION FINANCING FOR BUILDERS AND DEVELOPERS

Ground-up construction financing is built for builders and developers who need capital to take a project from land or teardown to a finished, income-producing or sellable property. Representative scenarios include:

Infill Single-Family Builder

A builder acquiring a vacant infill lot to construct a new single-family investment property for sale or lease.



Small Multifamily Developer

A developer building a new small multifamily or townhome project on land already owned or under contract.



Spec Commercial Builder

A business owner or investor constructing a small commercial or mixed-use building for lease or eventual sale.

GROUND-UP CONSTRUCTION FINANCING STRUCTURE

Ground-up construction financing may be structured in two ways depending on the project and the borrower's long-term plan:

Ground-Up Construction Loan

Short-term financing to fund land or lot cost (when applicable) and vertical construction, with the loan typically repaid at sale or through a separate refinance once construction is complete.



Construction-to-Permanent Financing

A structure that may allow the construction phase to transition into longer-term financing, such as a DSCR rental loan, once the project is completed and stabilized, subject to underwriting and program requirements.

Program Highlights

Leverage on Cost — Financing may be available for up to a stated percentage of land and construction cost, subject to underwriting and program requirements.

Draw-Based Funding — Construction funds are typically released in draws as project milestones are completed and verified.

Interest-Only Structures — Interest-only payments during the construction period may be available depending on the program.

Experience-Based Terms — Leverage and terms may vary based on builder or developer experience and project scope.

Eligible Projects and Geographic Availability

Eligible Property Types

  • New single-family investment construction
  • Small multifamily and townhome projects
  • Spec and build-to-rent homes
  • Small commercial or mixed-use buildings

Geographic Availability

HML4Investors offers nationwide business-purpose construction financing, subject to program and state availability. Contact our team to confirm eligibility for your project's location.

Documentation Typically Requested

Every construction project is different, but most builder and developer submissions include the following categories of documentation:

Builder and Entity Information — borrowing entity documents and builder or developer experience history.

Site and Plans — site plan, architectural plans, and permit status.

Construction Budget — a detailed line-item budget covering site work, materials, and labor.

Property and Land Documentation— purchase contract or existing land ownership documentation, and preliminary title information.

Financial Information— borrower financial statements and evidence of available funds for the required contribution, subject to program requirements.

How Construction Underwriting and Draws Work

1. Project Review — Our team reviews the site, plans, budget, and builder experience to assess project feasibility.



2. Underwriting — The project is underwritten against the budget, plans, and available funding-source guidelines.



3. Closing and Initial Funding — Once approved, financing closes and initial funds are disbursed for the applicable phase of the project.

4. Draw Requests and Inspections — As milestones are completed, draw requests are submitted and typically verified through inspection before additional funds are released.

Ground-Up Construction Financing FAQs

  • Does HML4Investors fund the full construction budget?

    Financing may cover a stated percentage of construction costs, subject to underwriting, budget review, and program requirements; the remaining contribution is typically the borrower's responsibility.

  • How are construction funds released?

    Funds are typically released in draws tied to completed and verified project milestones rather than as a single lump sum.

  • Can I use construction financing if I already own the land?

    Yes, in many cases; land already owned may be used as part of the project cost basis, subject to underwriting and program requirements.

  • Is construction-to-permanent financing available?

    In some cases, a completed construction project may transition into longer-term financing, such as a DSCR rental loan, subject to underwriting and program requirements.

  • What experience do I need to qualify?

    Builder and developer experience is one factor in underwriting; both first-time and experienced builders may be considered depending on the project.
Construction budget spreadsheet and site plan on a desk with a hard hat

Prepare Your Project With the Construction Budget Checklist

Before submitting a construction project for review, use our Construction Budget Checklist to organize your site plans, budget line items, and builder documentation in advance.

Ready to Discuss Your Construction Project?

Tell us about your build and explore financing options, or apply now if you're ready to move forward.

Financing offered by HML4Investors, a division of Dr. Michael Aaron & Associates LLC, is for business-purpose, non-owner-occupied investment and commercial properties only. This is not a commitment to lend. Terms, programs, and availability may change and are subject to underwriting and applicable state, appraisal, title, insurance, and funding-source requirements.