A clear approach to residential ground-up construction.
● Terms structured around scope, experience, and delivery.Rates starting at 8.99%Ground Up Construction Financing
Ground-up construction loans are designed to support borrowers building one-to-four-unit residential properties from initial development through completion. This program offers flexible structures and competitive terms tailored to project scope, experience level, and execution timeline, allowing borrowers to fund construction efficiently while maintaining clarity and control throughout the build process.
Ground Up Program
Loan-to-Cost (LTC)
Financing available up to 75% of the lesser of land value or acquisition price, or up to 60% for unpermitted projects, plus up to 100% of approved construction costs. Total financing is capped at 85% of total project cost. A post-closing draw may be available to increase the initial advance to 75% upon approval of required plans and permits.
Loan-to-Value (LTV)
Maximum leverage available up to 70% of projected after-completion value.
Recourse Structure
All loans are originated with full recourse.
Reserves & Escrows
An interest reserve is required, with a minimum of one month held at closing.
Borrower Experience
Prior ground-up development experience of one to two completed projects is required. General contractor experience may be required when permits are tied to prior ground-up projects. Guarantors without direct experience may be considered on a case-by-case basis.
Loan Amount
Loan amounts range from $50,000 to $3,000,000.
Loan Term
Standard loan term of 12 months, with extensions up to 18 months available at lender discretion.
Property Count per Loan
Each loan may include a minimum of one property and a maximum of two properties.
Eligible Property Types
Qualifying assets include non-owner-occupied residential properties with one to four units, townhomes, and condominium units.
Ineligible Property Types
The following property types are not eligible:
– Mixed-use properties
– Multifamily properties with five or more units
– Condotels
– Cooperative units or TICs
– Commercial properties
– Log homes
– Properties subject to oil or gas leases
– Operating farms, ranches, or orchards
– Vacation or seasonal rental properties
– Rural properties
Experienced Developer Program (3+ Similar Past Projects)
Loan-to-Cost (LTC)
Financing may be structured up to 75% of the lesser of land value or acquisition price, or up to 60% for projects without approved permits, in addition to funding up to 100% of qualified construction costs. Total leverage may reach up to 90% of total project costs when an interest reserve is financed, or up to 85% when the interest reserve is not financed. A post-closing advance may be available to increase the initial funding level to 75% upon approval of required plans and permits.
Loan-to-Value (LTV)
Maximum leverage available up to 70% of projected after-completion value.
Recourse Structure
All loans are originated with full recourse.
Reserves & Escrows
An interest reserve is required, with a minimum hold of one month.
Borrower Experience
Borrowers must demonstrate prior development experience, including three or more comparable ground-up construction projects and/or substantial rehabilitation projects with expansions. Professional builders or developers are required. Guarantors without direct experience may be considered when paired with an experienced guarantor meeting these criteria.
Loan Amount
Loan amounts range from $50,000 to $3,000,000.
Loan Term
Loan terms ranging from 12 to 24 months are available.
Property Count per Loan
Each loan may include a minimum of one property and up to ten properties.
Eligible Property Types
Permitted property types include non-owner-occupied residential properties with one to four units, townhomes, and condominium units.
Ineligible Property Types
The following property types are not eligible:
– Mixed-use properties
– Multifamily properties with five or more units
– Condotels
– Cooperative properties or TICs
– Commercial properties
– Log homes
– Properties subject to oil or gas leases
– Operating farms, ranches, or orchards
– Vacation or seasonal rental properties
– Rural properties
The Blackgrid Process
Submit Your DealShare your project details and supporting information for a thorough, experience-driven review focused on structure, risk, and execution.
01
Receive a Clear DecisionWe provide a definitive approval decision with clearly defined terms and next steps, typically within days, so you can move forward confidently.
02
Close and ExecuteFinalize documentation, coordinate closing, and receive funding through a streamlined process aligned with your project timeline.
