Ground-Up Construction Loans for Investors and Builders
A new construction loan funds building a property from the ground up, on a lot you already own or one you are buying. It is short-term financing for investors and builders who plan to sell the finished property or refinance it into long-term financing. Kala Lending LLC shops construction options across multiple lenders.
How Construction Financing Works
- Lenders review your plans, budget, and timeline before approval
- Some programs can also finance part of the lot purchase
- Construction funds are released in draws as work passes inspection
- With many programs, interest is charged only on the funds drawn so far
- The loan is repaid when you sell the property or refinance it
Projects We Can Help Finance
- Single-family homes built to sell or rent
- 2-4 unit properties
- Townhomes and small residential projects
What Lenders Typically Look For
- Plans and permits: approved or in progress
- Budget and timeline: a detailed cost breakdown and schedule
- Builder experience: your track record or your contractor’s
- Land equity: what you own in the lot
- Exit plan: a sale or a refinance into long-term financing
Frequently Asked Questions
Can my land count toward the down payment? Often, equity in a lot you own can count toward your contribution. It varies by lender.
Do I need to be a licensed builder? Not always, but many lenders want a licensed general contractor on the project.
What happens when construction is finished? You sell the property or refinance it, for example into a DSCR loan if you keep it as a rental.
Run Your Construction Scenario
Contact Kala Lending or submit your deal.
Kala Lending LLC is a mortgage broker and not a direct lender. Loans are offered through third-party lenders. Loans are for business or investment purposes only and are not for personal, family, or household use. All loans are subject to underwriting approval. Rates, terms, leverage, and availability vary by lender, borrower, property, and state. This is not a commitment to lend or a rate quote.
Related pages: Bridge Loans | Land Acquisition Loans | Fix and Hold Loans | Fix and Flip Loans | All Loan Programs