RTL Program

Ground Up Construction Loans for Investors and Builders

Vertical construction financing for experienced residential builders.

FAQ

Ground-Up / New Construction — frequently asked.

Who qualifies for Ground-Up construction financing?

Experienced residential builders with a relevant track record. The program is not designed for first-time builders — sponsor experience is a key underwriting factor.

How does the initial advance work?

At close, an initial advance up to 60% of the land value is funded. Subsequent construction draws reimburse completed work after on-site inspection.

Are Tear-Down / Rebuild projects eligible?

Yes. Tear-down and full rebuild projects qualify under the Ground-Up program alongside new-build vertical construction.

What is the maximum loan-to-cost?

Up to 85% overall loan-to-cost (LTC), with a $2M program ceiling. Final leverage depends on the project, land value, and sponsor tier.

What's the exit strategy?

Common exits include sale at completion, a refinance into permanent financing, or a transition into Constructive's DSCR Rental program once the property is leased and stabilized.

How do draws work?

After the initial advance, you submit draw requests tied to completed construction milestones. An inspector verifies the work, and funds are released — designed to move fast so your build schedule stays on track.