Ground-Up Construction Loans for Developers | REIF Loans
Finance your next ground up development with flexible construction loans. Structured draws, interest reserves, and expert project guidance.
Ground-Up Construction Loans for New Development Projects
At REIF Loans, we specialize in financing new commercial and mixed-use projects through structured ground-up construction loans. From the first shovel to the final completion certificate, our programs support investors and developers who want flexible capital, clear draw schedules, and reliable access to funds.
Whether you’re building a retail plaza, a multifamily community, or an industrial facility, REIF Loans helps you move confidently through every stage of development.
What Is a Ground-Up Development Loan?
A ground-up development loan finances the construction of a new property from the ground up covering land acquisition, building materials, labor, and soft costs.
It’s designed for investors who create value through new construction rather than purchasing existing buildings.
Key features include:
- Flexible draw schedule linked to construction milestones
- Built-in interest reserve to reduce monthly cash flow pressure
- Loan-to-Cost (LTC) ratios funding up to 85% of total project cost
- Disbursement of final funds after receiving the completion certificate
These loans are tailored for investors and builders ready to transform land into profitable income-producing assets.
How the Construction Loan Process Works
Ground-up financing involves multiple stages each designed to balance funding access and project accountability. REIF Loans guides you through every step.
Loan Approval & Budget Review
We analyze your plans, cost breakdown, and timeline to confirm feasibility and align the loan with your budget.
Draw Schedule Setup
Funds are released based on progress inspections to ensure every dollar goes toward completed work.
Interest Reserve Management
Your interest reserve covers loan payments during construction, freeing up working capital for on-site needs.
Completion & Conversion
After receiving thecompletion certificate, we help convert your short-term construction loan into permanent DSCR or commercial financing.
Ground-Up Loan Terms, LTC, and Qualification Requirements
Loan terms are structured to match project scale, timeline, and borrower experience. Typical criteria include:
- Loan-to-Cost (LTC): Up to 85%
- Credit Score: 680+ preferred
- Equity Requirement: 15–25% cash in
- Experience: Demonstrated construction or development background
- Interest Reserve: Optional inclusion for smoother cash flow
- Completion Certificate: Required before final disbursement or refinance
Once the project stabilizes, REIF Loans can refinance your build into a DSCR or commercial term loan for long-term performance.
Benefits of Partnering with REIF Loans
When you work with REIF Loans, you get more than just capital you get an experienced partner who understands construction timelines and investor priorities.
Here’s what makes our ground-up construction programs stand out:
- Transparent draw and inspection process
- Dedicated advisor for every project phase
- Access to nationwide commercial lenders
- Flexible LTC structures with optional interest reserves
- Conversion to permanent financing upon completion
From Blueprint to Completion Certificate
Every successful construction project follows a path from planning to profitability. REIF Loans helps you manage each step with clarity and precision.
Pre-Construction Planning
We assist with feasibility, cost review, and optimal loan structure before the first draw.
Active Construction Phase
Funds are released in stages, ensuring capital aligns with verified progress.
Final Completion Certificate
When construction concludes, a completion certificate confirms code compliance and project readiness triggering the last loan disbursement and permanent conversion options.
Frequently Asked Questions About Ground-Up Construction Loans
What’s the difference between a construction loan and a renovation loan?
A renovation loan funds improvements to an existing property, while a ground-up loan finances entirely new builds from land to finish.
How do draw schedules work?
Draws are paid in stages typically foundation, framing, mechanicals, and completion after verified inspections.
Can interest be rolled into the loan?
Yes. Most projects include an interest reserve so you don’t have to make out-of-pocket payments during construction.
Do I need a completion certificate?
Yes. It verifies your project meets all design and safety standards, required for the final disbursement.
Can I refinance into a DSCR loan after construction?
Absolutely. Once the property is leased and stabilized, we can structure long-term DSCR or commercial financing.
Ready to Finance Your Ground-Up Development?
Building from the ground up takes expertise, planning, and reliable funding. REIF Loans provides structured financing to help investors turn empty lots into income-generating assets.
Whether your project is multifamily, mixed-use, or commercial, we’ll help you design the right loan strategy from start to finish.