New Construction Lending
What Is a New Construction Loan?
A New Construction Loan(also known as a Ground-Up Construction Loan) is designed to finance the development of a property from the ground up, including land acquisition (in some cases), hard construction costs, and soft costs and soft costs—see our loan programs for related options.
These loans are structured as short-term, interest-only financingduring construction, with funds released through a draw scheduleas the project progresses.
At Nadlan Financing, we arrange construction loans for residential and commercial projects, including foreign-national investors and LLC structures
Who Can Qualify?
US Citizens
Permanent Residents
Non-Permanent Residents
Foreign Nationals
Individual or LLC ownership
Experienced & transitional investors
Eligible Property Types
| Residential | Commercial |
|---|---|
| Single-Family Homes | Multifamily (5+ units) |
| Townhomes | Mixed-Use |
| 2–4 Unit Multifamily | Retail |
| Small Residential Developments | Offices |
| Industrials | |
| Build-to-Rent Projects |
Lending Criteria – New Construction Loans
Typical Lender Requirements
| Criteria | US Investors | Foreign Investors |
|---|---|---|
| Max LTC (Loan-to-Cost) | Up to 75% | Up to 65% |
| Land Acquisition | Case-by-case | Case-by-case |
| Loan Size | $500K – $50M+ | $1M – $20M |
| Term Length | 12–36 months | 12–24 months |
| Interest Type | Interest-Only | Interest-Only |
| Draw Schedule | Yes | Yes |
| Completion Guarantee | Required | Required |
| Ownership | Individual / LLC | LLC |
| Exit Strategy | Sale or Refi | Sale or Refi |
| Closing Timeline | 30–60 days | 45–75 days |
How Construction Loans Work
Approved plans, budget, and timeline
Loan closes with initial funding
Funds released via construction draws
Interest-only payments during build
Exit via sale or permanent financing
Required Documentation
US Borrowers
- Government-issued ID
- Detailed construction budget
- Plans & permits
- Contractor agreements
- Experience resume
- Financial statements
Foreign Investors
- Passport
- US LLC + EIN
- US bank account
- Proof of liquidity
- Development experience summary
- Exit strategy documentation
How Construction Loans Work
Access to private & institutional construction lenders
Residential & commercial expertise
Draw management support
Foreign-national friendly programs
Exit planning into DSCR or permanent loanss
Frequently Asked Questions (FAQs)
Do construction loans include land purchase?
Sometimes. Land acquisition can be included if purchased recently or contributed as equity.
Are construction loans interest-only?
Yes. Payments are typically interest-only during the construction phase.
Can foreign nationals get construction loans?
Yes. With proper structure, foreign investors can qualifythrough US LLCs.
How are construction funds released?
Through draws, after inspections confirming completed work.
What happens after construction is complete?
The loan is typically refinanced into a DSCR or permanent loanor paid off upon sale.