A Ground-Up Construction Loan, Worked Out
See what 100% land and construction financing looks like in dollars, before you apply.
Sample project
A builder buys a lot for $200,000 and has a $300,000 construction budget. The finished home is projected to appraise at $800,000.
| Item | Amount |
|---|---|
| Land purchase | $200,000 |
| Construction budget | $300,000 |
| Total project cost | $500,000 |
| After-repair value (ARV) | $800,000 |
| Maximum loan at 75% ARV | $600,000 |
| Loan amount (100% of land + construction) | $500,000 |
| Loan to ARV | 62.5% |
| Lender points (2) | $10,000 |
| Interest rate / term | 13% / 12 months |
| Interest if fully drawn, per month | about $5,417 |
| Minimum liquidity (10% of budget + 6 months of payments) | $62,500 ($30,000 + $32,500), plus third-party fees and closing costs |
The loan covers the whole $500,000 cost, so your own cash goes to reserves and closing costs rather than a large down payment. Interest accrues only on funds drawn, so early monthly interest is lower than the fully drawn figure shown.
Run your own numbers
Change the lot price, budget and ARV in our calculator to see your results.
How it works
1. Price it
Enter the lot price, construction budget and after-repair value in our calculator to see leverage, cash to close and monthly interest.
2. Apply
Create your portal account, complete the application, authorizations and experience worksheet, and upload your documents.
3. Build
Once approved and closed, construction funds are released through scheduled draws as work is completed.
Price your project
Run your numbers in about a minute, then start your application. No obligation.
Illustrative only; not a commitment to lend. All loans are business-purpose only, subject to lender underwriting and approval, property and borrower eligibility, and verified liquidity (10% of the construction budget plus 6 months of payments, third-party fees and closing costs). Financing is not available in HI, AK, OR, CA, AZ or NV, or in Baltimore, Philadelphia, New York City or Washington DC. Reduced leverage may apply in some markets. Rates, points and terms may change.
This example excludes Borrowers Capital processing fees, title, insurance and other closing costs, and uses a full-draw interest estimate for illustration.