Ground-up construction loans, funded direct.
Buy the lot and build with one lender: up to 80% of the purchase price, 100% of construction released in draws, up to 92.5% of total cost and 75% of the after-repair value. Rates from 9.85%*, loans up to $4.5M, up to 24 months.
On every construction and fix & flip loan
Ground-up construction terms.
| Term | What we offer | What it means |
|---|---|---|
| Loan amount | Up to $4.5M | New 1–4 unit residential construction, non-owner-occupied. |
| Land purchase | Up to 80% | Of the lot’s purchase price, advanced at closing. |
| Construction | 100% in draws | Of the construction budget, held at closing and released as each phase is done. |
| Total cost (LTC) | Up to 92.5% | Of land plus construction. |
| After-repair value | Up to 75% | Of the appraised value of the finished property. |
| Rate | From 9.85%* | Set by experience, credit, leverage and the project. |
| Origination | 1.25 points | 1.25% of the loan amount. |
| Term | Up to 24 months | Extend for 0.5 points per three months if the build runs long. |
| Monthly payments | Can be financed | No monthly payments out of pocket while you build. |
For 5 to 30 units, see construction loans for 5–30 unit buildings.
Sizing a build, step by step.
At closing, $155,000 goes toward the lot (you bring $45,000 plus costs), and $400,000 is held for construction draws. Origination at 1.25 points: $6,937.50. Example figures, not a quote.
From lot to certificate of occupancy.
Appraisal
The lot’s value today and the finished property’s value.
Close on the lot
The land advance funds at closing; the construction budget is held for draws.
Build & draw
Request each draw in the portal, inspected virtually or on-site, and funded in minutes once approved.
YS Capital is the best direct lender I’ve ever dealt with! Fast and efficient — it’s worth the try, you won’t regret it!
Ground-up construction questions
How much can I borrow for ground-up construction?
Up to 80% of the lot’s purchase price and 100% of the construction budget, capped at up to 92.5% of total cost and 75% of the after-repair value, whichever is lowest. Loans go up to $4.5M on 1–4 units.
Do you finance the land?
Yes. Up to 80% of the lot’s purchase price is advanced at closing, and the construction budget is held for draws.
What are your construction loan rates?
Starting at 9.85%* for experienced, well-qualified builders. Your rate depends on experience, credit, leverage and the project.
What do you need for a ground-up loan?
Typically the lot’s purchase contract or deed, the plans, the permits or where they stand, the builder’s contract, a line-item budget, your entity documents and bank statements.
How are construction draws paid?
You request each draw in our online portal with photos and invoices; the inspection is virtual or on-site, and approved draws are funded in minutes. How our draws work.
Do I make payments during construction?
The interest can be financed, so there are no monthly payments out of pocket while you build.
Do you lend on 5 or more units?
Yes. Our 5–30 unit construction loans go up to $15M. See the terms.
Can I refinance into a rental loan when the build is done?
Yes, into a 30-year DSCR loan with us once the property is leased.
Send us the build. We’ll send back the structure.
The lot, the budget and the finished value. We answer with the land advance, the draw budget and the rate.
*For business-purpose loans on non-owner-occupied investment property only. Not available for personal, family or household purposes. All loans subject to credit approval, underwriting and property eligibility. Rates, leverage and terms are indicative, change without notice, and not all borrowers will qualify; not a commitment to lend. YS Capital Group · NMLS ID 2609746 · Equal Housing Lender.