A new construction loan can cover both the cost of acquiring the lot and the vertical construction of the project. Adkins & Williams Advisors provides financing for ground-up new builds and tear-down/rebuild projects. Horizontal construction is not included, meaning the land must be properly zoned and have municipal utilities available and ready for connection to qualify.

Construction financing is best suited for investors with experience in ground-up projects, whether as a property owner, general contractor, or through fix-and-flip experience. Our team works closely with clients to review their background and determine eligibility. By completing the borrower underwriting process upfront, we’re able to streamline approvals and move qualified construction loans to closing more efficiently.

Preapproval for a new construction loan can begin with or without a project that is ready to break ground. First, borrowers must demonstrate relevant experience with new construction either as a property owner, general contractor, or through prior fix-and-flip projects.

Second, borrowers must show sufficient liquid assets so a maximum credit exposure limit can be established. This limit is valid for up to six months and may be applied to a single project or multiple projects.

Finally, borrowers will consent to a soft credit inquiry during the preapproval stage. A hard credit pull will only be required once a loan is formally submitted.

For highly experienced builders, financing may cover up to 85% of the total blended project costs, including up to 100% of construction costs and up to 60% of lot acquisition costs. Borrowers with less construction experience should expect to contribute a larger upfront investment at the start of the loan.

A construction-to-permanent loan is designed for build-to-rent projects. The initial construction loan finances the build, and once the property is completed and a tenant is in place, the borrower refinances into a DSCR loan to hold the property as a long-term rental. This structure allows investors to move seamlessly from construction to stabilization, with a streamlined transition into permanent rental financing and no required seasoning period between loans

To move forward with a new construction loan, borrowers must submit building plans, a detailed line-item construction budget, and supporting project documentation as part of the property application. Our in-house team carefully reviews the budget to ensure it is realistic, complete, and aligned with the scope of the project. As part of the underwriting process, a review of the general contractor is also conducted to confirm qualifications and project readiness.

New construction loans typically offer a standard term of 13 months, with extended 19-month terms available for qualifying projects.

Yes, foreign nationals may qualify for ground-up construction loans, even without an established U.S. credit score. Eligibility is evaluated based on borrower qualifications and project details, and our team can guide foreign nationals and permanent resident aliens through the underwriting requirements.

For additional questions about ground-up construction loans and financing options, please refer to our detailed FAQ section for more information.