How Do Ground-Up Construction Loans Work?
How Do Ground-Up Construction Loans Work? Ground-up construction loans are specialized financing options designed to fund the construction of a property from start to finish. Unlike traditional home loans, which finance the purchase of an existing property, ground-up construction loans cover everything from land acquisition to the final touches on the building. Understanding how these loans work can help you navigate the process and make informed decisions for your construction project. What Is a Ground-Up Construction Loan? A ground-up construction loan & Non-Bank Commercial lender is a short-term loan specifically intended for building a structure from the ground up. These loans are often used for residential, commercial, or mixed-use developments. Borrowers can use the funds for a variety of purposes, including purchasing raw land, preparing the site, and constructing the building itself. Unlike a traditional mortgage, which disburses the entire loan amount upfront, ...