Ground-Up Construction Loans From 10.0% IO — Up to 90% LTC, Any of 20 States

A ground-up construction loan is short-term financing that funds the construction of a new property — from land acquisition (if needed) through site work, foundation, framing, mechanicals, finishes, and final inspection. Unlike a purchase-money mortgage, the property doesn't exist yet in its finished form, so the loan is sized against total project cost (land plus hard costs plus soft costs) — a measure called Loan-to-Cost, or LTC — rather than against a current appraised value.

Funds are disbursed in draws as construction progresses, not all at once. After closing, an initial draw covers land acquisition and early site work. As each phase completes — foundation, framing, rough mechanicals, insulation and drywall, finishes — the builder submits a draw request, and the lender releases funds after a brief inspection confirms the work is complete. Interest accrues only on the funds actually drawn, not the full committed loan amount, which keeps carrying costs low during the early stages of a project.

Ground-up construction financing differs from a renovation or fix-and-flip loan in one key respect: there is no existing structure providing collateral value on day one. That makes builder experience, plan quality, permitting status, and budget realism the central underwriting questions — not the borrower's personal credit history or income documentation. Sab Tera Lending underwrites the deal, not the paperwork, which is why first-time builders with a solid general contractor and a complete plan set are approved alongside seasoned developers running multiple projects at once.

Sab Tera Lending funds ground-up construction loans from its own capital, from 10.0% interest-only, up to 90% LTC, with 12-24 month terms across all 20 states and Long Island. We issue a same-day commitment for complete submissions and move quickly on draw inspections and fundings — because nothing derails a construction project faster than a lender who can't keep pace with your contractors.

Rates and points shown are indicative starting ranges as of 2026 and vary based on project location, builder experience, budget completeness, and exit strategy. Zero upfront fees and no prepayment penalty apply to every tier. Confirm exact pricing for your project with a same-day term sheet.

Example: if your total project cost (land + hard costs + soft costs) is $400,000, a 90% LTC loan from Sab Tera Lending would be $360,000 — you'd bring $40,000 plus any land equity you already have. If the completed home appraises at $550,000, your effective LTV on the construction loan is roughly 65% of completed value — leaving meaningful equity for a refinance or sale once the certificate of occupancy is issued. Builders completing multiple projects a year use that spread to refinance into a Sab Tera Lending DSCR rental loan and recycle capital into the next build without waiting to sell.

*EasyBuild's 48-hour figure refers to initial approval, not full closing. Competitor terms reflect publicly available program information as of 2026 and are subject to change. Confirm current terms directly with each lender.

Every competitor above sets a minimum credit score of 650 or higher and charges some combination of origination points, draw fees, or processing fees — Kiavi and RCN Capital both add per-draw inspection charges on top of origination points, and LendingOne's published borrower reviews cite document-preparation and draw fees stacking on top of standard points. Sab Tera Lending has no credit score minimum, zero upfront fees, and no prepayment penalty on the same up-to-90% LTC leverage that only Easy Street Capital and RCN Capital match. Most competitor sites also publish thinner, brokered-focused program pages that list rate ranges as "varies," without the state-by-state detail, plain-language draw process explanation, or FAQ depth investors and builders actually search for — the content gap this page is built to close.

The most common operational risk in construction lending is the gap between when contractors expect payment and when draw funds arrive. Most contractors expect payment within 30 days of completing their scope of work. Sab Tera Lending moves quickly on draw inspections and fundings specifically to close that gap — because a delayed draw can stall your entire project, push back your timeline, and damage relationships with the trades you'll need on your next build. Interest accrues only on funds actually drawn, so undrawn portions of your committed loan amount don't cost you anything while you wait on permits or plan revisions.

Unlike lenders that outsource draw inspections to a third-party servicer with its own queue and turnaround time, Sab Tera Lending manages draws directly. That means a single point of contact for scheduling an inspection, no hand-off delays between origination and servicing, and no surprise per-draw fees layered on top of your rate — a common complaint investors raise about tech-driven construction lenders that charge $150–$250 per draw request regardless of loan size.

New York & Long Island

Across New York — NYC infill lots, Westchester, the Hudson Valley, Buffalo, and Albany — and on Long Island (Nassau and Suffolk Counties, the Hamptons), ground-up construction is dominated by teardown/rebuild projects and spec single-family homes on infill lots, where land cost is the largest share of total project cost. The 90% LTC ceiling is especially valuable here because high land values mean the equity requirement on a lower-LTC program would be prohibitive for many builders. Long Island's Nassau County submarket in particular sees a steady pipeline of 1970s and 1980s ranch and split-level teardowns replaced with larger, code-modern spec homes, while Suffolk County's East End supports higher-value custom builds where a 90% LTC structure meaningfully reduces the builder's cash outlay on land carrying costs.

New Jersey & Connecticut

In New Jersey — Bergen County, Essex County, Middlesex County, and Jersey City — and Connecticut — Fairfield County, Greenwich, New Haven, and Hartford — builders commonly construct townhome clusters and small multifamily new builds on assembled or subdivided lots. No income verification and no credit minimum make Sab Tera Lending's program accessible to independent builders and LLC-structured development entities common in these markets. Local zoning in many Bergen and Essex County municipalities favors small-lot subdivision, which is why townhome cluster financing — rather than single large parcels — makes up a growing share of construction loan requests we see from the region.

Florida & Texas

In Florida — Miami, Tampa, Orlando, Jacksonville, and Fort Lauderdale — and Texas — Houston, Dallas-Fort Worth, San Antonio, and Austin — new construction activity remains among the highest in the country, with spec home builders and small developers constructing single-family and small multifamily product in fast-growing suburban submarkets. Foreign national eligibility is especially valuable here given significant international capital active in both states' development markets. Builders in Central Florida and the Texas Triangle also benefit from lower soft-cost burdens relative to coastal metros, which improves overall project economics even at standard LTC leverage.

Pennsylvania & Ohio

In Pennsylvania — Philadelphia, Pittsburgh, Allentown, and Harrisburg — and Ohio — Columbus, Cleveland, Cincinnati, Dayton, and Akron — infill construction on vacant lots in established neighborhoods is a common strategy, where new-build product can command a significant premium over the surrounding older housing stock. Lower land costs mean total project costs are often well within reach of investors building their first spec home with 90% LTC financing. Columbus in particular has seen an active infill pipeline tied to continued corporate relocation and population growth, supporting strong absorption for newly built single-family product.

Virginia, Indiana & Michigan

In Virginia — Northern Virginia/DC, Richmond, and Hampton Roads — Indiana — Indianapolis, Fort Wayne, South Bend, and Evansville — and Michigan — Detroit Metro, Grand Rapids, Ann Arbor, and Lansing — builders take advantage of available infill and suburban lots for spec home construction, with strong demand in Northern Virginia's DC-adjacent submarkets and steady absorption in growing Midwest metros like Indianapolis and Grand Rapids. Detroit Metro's continuing neighborhood revitalization has also created opportunities for smaller-scale teardown and infill construction where zero income verification helps independent local builders compete against larger regional developers.

Massachusetts, Kentucky & Tennessee

In Massachusetts — Greater Boston, Worcester, Springfield, and Cape Cod — Kentucky — Louisville, Lexington, and Bowling Green — and Tennessee — Nashville, Memphis, Knoxville, and Chattanooga — high-value teardown/rebuild projects in coastal Massachusetts contrast with the high-growth spec home construction pipeline in Nashville, one of the fastest-growing new construction markets in our footprint. Louisville and Lexington builders frequently combine construction financing with land already owned outright, using existing lot equity to reduce their required cash contribution below the standard 10% minimum.

Mississippi, Louisiana & the Carolinas

In Mississippi — Jackson, Gulfport, Biloxi, and Hattiesburg — Louisiana — New Orleans, Baton Rouge, and Shreveport — North Carolina — Charlotte, Raleigh-Durham, and Greensboro — and South Carolina — Charleston, Greenville, and Myrtle Beach — low land and labor costs make new construction one of the most efficient ways to build equity quickly, particularly in fast-growing Charlotte and Raleigh-Durham submarkets where new-build inventory is in high demand. Coastal Mississippi and Louisiana builders also frequently work with elevated foundation designs suited to flood-zone requirements, a hard cost Sab Tera Lending underwrites as part of total project cost rather than treating as an unapproved change order.

Georgia & Alabama

In Georgia — Atlanta, Savannah, and Augusta — and Alabama — Birmingham, Huntsville, and Mobile — continued population growth supports robust new construction activity, with builders constructing spec homes and small multifamily product in Atlanta's expanding suburban submarkets and Huntsville's tech-driven growth corridor. Atlanta's outer-ring counties in particular have absorbed a steady flow of new single-family and small multifamily construction as continued in-migration keeps resale inventory tight relative to demand.

Single-Family Spec Homes

The most common project we finance: a builder acquires a vacant lot or teardown, builds a single-family home with no committed buyer, and sells or refinances on completion. Spec home construction rewards speed — the faster a builder can move from permit to certificate of occupancy, the less carrying cost erodes the margin. Sab Tera Lending's same-day commitment and fast draw schedule are built around this reality, funding foundation, framing, and finish draws quickly so the build doesn't stall waiting on the lender.

2-4 Unit New Construction

Small multi-unit new builds — duplexes, triplexes, and fourplexes — let investors create rental income or resale product on a single parcel. These projects often carry a higher total project cost than a single-family spec home but benefit from the same up-to-90% LTC leverage, and many borrowers plan from the outset to refinance into a Sab Tera Lending DSCR rental loan once the certificate of occupancy is issued and units are leased.

Small Multifamily (5+ Unit) New Builds

Ground-up construction on 5+ unit properties typically involves a longer 18-24 month term, a larger total project cost, and more detailed underwriting of the general contractor's track record on comparable-scale projects. Sab Tera Lending finances these builds up to 85% LTC and coordinates closely with borrowers on draw timing given the larger number of inspection milestones involved. Larger multifamily new-build requests are cross-referenced against our multifamily loan program to determine the best structure.

Townhome & Condo Developments

Townhome clusters and small condo developments on subdivided or assembled parcels are common in New Jersey, Connecticut, and the Carolinas, where zoning favors smaller-footprint attached product. These projects often close with a phased draw schedule tied to each unit's completion stage rather than a single blended schedule, letting builders sell or lease individual units as they finish rather than waiting on the entire development.

Teardown / Rebuild Projects

Teardown and rebuild projects — demolishing an existing structure to build new on the same lot — are especially common on Long Island, in coastal Massachusetts, and in infill neighborhoods across Ohio and Pennsylvania, where land is scarce but older housing stock has aged past a cost-effective renovation. Demolition costs are underwritten as part of total project cost, and the initial draw typically covers both demolition and the first phase of new construction.

Total project cost on a ground-up construction loan is the sum of three categories: land (if not already owned), hard costs, and soft costs. Hard costs — foundation, framing, roofing, mechanicals, and finishes — typically represent 65-75% of total project cost on a single-family spec home. Soft costs, including architectural plans, engineering, permits, impact fees, surveys, and insurance during construction, typically add another 10-20% on top of hard costs, and a contingency reserve of 5-10% of hard costs should be budgeted to absorb change orders and unexpected site conditions without requiring a separate loan modification mid-build.

First-time builders most often underestimate soft costs, since architecture, engineering, permitting, and insurance line items are easy to overlook when a budget is built primarily around per-square-foot hard cost estimates. A budget that accounts for only the architect's fee and skips civil engineering, surveying, and construction-period insurance can run 10-15 percentage points short of actual total project cost — which is why Sab Tera Lending's underwriting reviews the full line-item budget, not just a headline hard cost number, before issuing a same-day commitment.

Traditional bank construction loans typically require a credit score of 680 or higher, full income and tax return documentation, a 20% or larger down payment, and a personal guarantee reviewed against the borrower's debt-to-income ratio — often taking four to six months from application to closing. Banks also frequently require the borrower to separately qualify for permanent take-out financing before releasing construction funds, adding a second underwriting gate to the process.

Sab Tera Lending underwrites the project instead of the borrower's personal financial profile: no credit score minimum, no income verification, and a same-day commitment for complete submissions. This project-first approach is why independent builders, LLC-structured development entities, and foreign national investors — groups that often struggle to qualify for bank construction financing regardless of the strength of their project — use Sab Tera Lending's ground-up construction program across all 20 states and Long Island. The tradeoff is rate: private construction loans start around 10.0% versus 6-8% for a bank construction-to-permanent loan, a premium builders generally accept in exchange for speed, leverage, and underwriting flexibility on time-sensitive projects.

Most ground-up construction loans are repaid one of three ways once the certificate of occupancy is issued: a sale to an owner-occupant or investor buyer, a cash-out refinance into permanent financing, or a rate-and-term refinance into a long-term rental loan if the plan shifts from build-to-sell to build-to-rent. Because Sab Tera Lending charges no prepayment penalty, builders who sell ahead of schedule keep 100% of the upside without an early-payoff fee eating into proceeds.

Builders who complete a project and decide to hold it as a rental commonly refinance directly into a Sab Tera Lending DSCR rental loan, using the completed property's appraised value and market rent — not personal income — to qualify. This construction-to-rental path lets a builder recycle the equity created during the build into their next ground-up project while converting the completed home or small multifamily property into long-term cash flow, all without a second round of income documentation.

Lima One Capital

Lima One Capital offers new construction loans up to 85% LTC and 70% LTV, with loan amounts from $100,000 to $3 million and a minimum credit score generally around 660. Lima One also offers a Build-to-Rent product that converts a completed construction loan directly into a longer-term rental loan. Builders who value a single-lender path from construction through permanent financing often consider Lima One, though its published LTC ceiling sits below Sab Tera Lending's 90% and its rate-and-fee structure is priced individually per deal rather than published as a flat starting rate.

Kiavi

Kiavi's New Construction & Infill program advertises rates starting near 9.0% interest-only with up to 85% of total project cost financed, a minimum credit score generally in the 640-660 range, and a technology-driven underwriting process that skips a formal appraisal in favor of an internal data-model valuation. Kiavi's speed and digital process appeal to repeat investors running standardized infill projects, though its published leverage tops out below Sab Tera Lending's 90% LTC and origination fees apply on top of the quoted rate.

Easy Street Capital (EasyBuild)

Easy Street Capital's EasyBuild program advertises closings in as little as 48 hours for initial approval, up to 90% LTC, and financing of up to 100% of construction costs for qualified borrowers, with a minimum credit score around 680. EasyBuild matches Sab Tera Lending's 90% LTC ceiling, but its higher published credit floor and rate/fee structure that "varies" by deal make Sab Tera Lending's no-minimum-credit-score, zero-upfront-fee structure a meaningfully different value proposition for borrowers without an established credit profile.

RCN Capital

RCN Capital's ground-up construction program offers loans from $100,000 to $2 million, up to 90% LTC, 12-24 month terms, and a minimum FICO score of 650, with rates starting near 10.99% as of 2026. RCN primarily serves mortgage professionals and brokers rather than working directly with investors, which can add a layer between the borrower and the underwriting decision compared to Sab Tera Lending's direct-lender model with no broker markup.

LendingOne

LendingOne's New Construction Loan program provides up to 90% LTC on loan amounts between $200,000 and $2 million, with a minimum credit score around 650 and rates commonly quoted between 10.0% and 11.25%. LendingOne requires borrowers to have completed at least one ground-up project within the past 36 months, a documented-experience requirement that Sab Tera Lending does not impose — Sab Tera Lending welcomes first-time builders who submit a complete plan set and a qualified general contractor.

Actual timing varies by project scope, jurisdiction permitting speed, and weather — a small spec home may reach certificate of occupancy in as little as 6-8 months, while a small multifamily new build often runs the full 18-24 month term. What stays constant across every project size in all 20 states and Long Island is Sab Tera Lending's same-day commitment on submission and fast turnaround on each draw inspection, so the lender is never the bottleneck in the schedule above.

Every ground-up construction loan requires a builder's risk insurance policy covering the property against fire, weather, theft of materials, and vandalism during the construction period, since a standard homeowner's policy does not cover a property under active construction. Sab Tera Lending requires proof of an active builder's risk policy naming the lender as loss payee before the initial draw releases, and confirms coverage remains active through each subsequent draw inspection.

General liability coverage carried by the general contractor is reviewed alongside the builder's risk policy, particularly on multi-unit or multifamily new-build projects where subcontractor coordination introduces additional site risk. Budgeting for both policies as part of soft costs — rather than treating insurance as an afterthought once construction begins — avoids a last-minute scramble that can delay the closing date.

In renovation and fix-and-flip lending, a slow draw might cost a few days of carrying interest. In ground-up construction, a slow draw can idle an entire crew, push back the framing subcontractor's next job, and cascade into weeks of schedule slippage that far exceeds the cost of the loan itself. That's why Sab Tera Lending built its ground-up construction program around a same-day commitment and fast, in-house draw inspections rather than outsourcing servicing to a third party — because in construction lending, the lender's responsiveness is as much a part of the deal as the rate on the term sheet. Builders across our 20 states and Long Island choose Sab Tera Lending specifically because a delayed draw is the single most common reason a well-budgeted construction project falls behind schedule.

A ground-up construction loan and a fix-and-flip renovation loan both use draw-based funding and interest-only payments, but they're sized against very different collateral. A fix-and-flip loan is secured by an existing structure with a current as-is value, so the lender can size the loan against purchase price plus renovation budget, up to a percentage of after-repair value. A ground-up construction loan has no existing structure to anchor an as-is value — the entire loan is sized against total project cost using LTC, since the property being built has no market value until it's substantially complete.

This distinction matters when a project sits in a gray area — for example, a gut renovation so extensive that only the foundation remains, or a teardown where a portion of the existing structure is preserved for permitting reasons. Sab Tera Lending reviews the scope of work on borderline projects to determine whether the fix-and-flip program or the ground-up construction program fits better, since choosing the right program up front affects both leverage and the draw schedule structure. If your project involves demolishing more than the interior finishes, it's typically a ground-up construction loan; if the structure, foundation, and roofline remain largely intact, a fix-and-flip loan is usually the better fit.

Because a ground-up construction loan has no existing structure as collateral, the general contractor's track record carries significant weight in underwriting — arguably more than it does in renovation lending, where an existing property provides a floor of value regardless of how the rehab goes. A licensed GC with references on projects of similar scope, a realistic fixed-price or cost-plus contract, and a documented history of pulling permits and passing inspections on schedule meaningfully de-risks a project in the eyes of any construction lender, Sab Tera Lending included.

First-time builders without a personal construction track record are not disqualified — but pairing with an experienced, licensed GC strengthens the file considerably. When submitting a project for review, include the GC's license number, a list of comparable completed projects, and contact information for at least one prior client or lender reference where possible. This single step is often the difference between a same-day commitment and a request for additional information that slows the process by a week or more.

Most real estate investors and builders hold projects inside an LLC or corporation for liability protection, and Sab Tera Lending underwrites construction loans directly to these entities without requiring a personal credit pull as a gating condition. Entity documents — articles of organization, an operating agreement, and a certificate of good standing — are reviewed alongside the project plans and budget, and a personal guaranty is typically required from the principal, but no minimum credit score is applied to that guaranty.

Foreign national borrowers — investors and builders without U.S. citizenship or permanent residency — are eligible for the same 90% LTC ground-up construction program in every state Sab Tera Lending serves. Since no income verification is required for any borrower, foreign nationals avoid the common friction point of a lender needing U.S. tax returns or a domestic credit history that doesn't exist. A U.S.-based entity structure and a valid passport or equivalent identification are typically sufficient to move a foreign national's project to a same-day commitment.

Sab Tera Lending is a direct private hard money lender, not a broker — every ground-up construction loan is funded from our own capital and serviced in-house from commitment through final draw. That structure is what makes a same-day commitment and fast draw turnaround possible: there's no warehouse lender, loan committee, or third-party servicer sitting between your project and a funding decision. Combined with no credit score minimum, no income verification, zero upfront fees, no prepayment penalty, and up to 90% LTC, Sab Tera Lending's ground-up construction program is built for builders who need a lender that can move at the pace of an active job site — across all 20 states and Long Island we serve. Whether you're a first-time builder pairing with an experienced general contractor or a developer running several projects at once, the underwriting standard stays the same from state to state: review the project, price the deal fairly, and fund draws fast enough that the lender is never the reason a build falls behind schedule.

Before a construction loan closes, Sab Tera Lending reviews site-level factors that can materially change a project's cost or timeline: soil and geotechnical conditions, flood zone designation, utility availability at the lot line, easements, and any environmental flags tied to prior use of the parcel. A soil report confirming the ground can support the planned foundation type avoids the costly surprise of discovering expansive soils, a high water table, or bedrock only after excavation has begun.

Coastal and flood-zone markets — parts of Florida, Louisiana, Mississippi, and coastal Massachusetts among our 20 states — often require elevated foundation designs or flood-vent construction that add to hard costs but are essential to securing a certificate of occupancy and standard homeowner's insurance once complete. Builders who identify these requirements during initial budgeting, rather than after a permitting office flags them, keep both their timeline and their total project cost on track from groundbreaking to final draw.

Because approval is project-driven, the strength of your general contractor and the completeness of your plan set matter more to underwriting than your personal financial statement. Borrowers who submit a full package on the first pass — survey, stamped plans, permit status, and a line-item budget — routinely receive same-day commitments, while incomplete submissions simply take a follow-up call to close the gaps. There is no cost or obligation to submit a project for review.