What Is a New Construction Loan?

A New Construction Loan is a short-term, asset-based loan that provides funding to real estate investors or builders to finance ground-up construction of residential or commercial properties.

Unlike traditional loans, these are based on the project’s total cost and future value, not personal income.

This loan is used to:

  1. Purchase land (optional)

  2. Fund the construction of a new property

  3. Exit via sale or refinance upon project completion

Requirements

  • Approved building plans

  • Contractor agreement or GC resume

  • Detailed construction budget

  • Permits (or plan to secure)

  • Exit strategy (sell or refinance)

  • Experience (preferred but not required)

Ideal Projects

  • New single-family or multi-family builds

  • Infill lot developments

  • Spec homes

  • Townhomes or duplexes

  • Build-to-rent properties

Exit Strategies

  • Sell the completed property for a profit

  • Refinance into a 30-year rental loan (DSCR or conventional)

  • Hold as part of a long-term portfolio

Benefits

  • Build brand-new investment properties with less capital upfront

  • Flexible underwriting with fast approvals

  • Rehab draws keep you funded throughout construction

  • Helps builders and investors scale projects faster

Get Started Today!

type of loans

FIX & FLIP LOAN

Rental property funding based on cash flow, not personal income.

DSCR LOAN

Rental property funding based on cash flow, not personal income.

NEW CONSTRUCTION LOAN

Break ground with confidence.

COMMERCIAL LOAN

For a larger deals and portfolio expansion

LAND LOAN

A land loan finances undeveloped land for future use.

CASH-OUT REFINANCE

Access home equity and get cash in hand

See more >>

R. Wright Consulting

© Copyright | R. Wright Consulting 2025. All Rights Reserved.

Follow