Ground-Up Construction Loans

We provide ground-up construction loans for investment properties only. This includes single-family homes, 2–10 unit residential properties, and mixed-use buildings where the majority of the space is residential. Projects must be on entitled land with proper zoning, approved permits, and complete construction plans. We do not finance owner-occupied homes, raw land without entitlements, or commercial-only properties. Each project is evaluated individually based on property type, location, and borrower experience.

Construction experience is considered as part of the approval process, but there is no set minimum requirement. We evaluate your overall track record, the qualifications of your construction team, the quality of your project plans, and your financial capacity to complete the build. If you’re newer to construction, partnering with an experienced builder and presenting a well-prepared plan can strengthen your application. Every project is reviewed case by case, with a focus on overall feasibility and borrower readiness.

We can finance up to 90% of the total project cost, depending on the scope and structure of the deal. This typically includes up to 50% of the land acquisition cost, 75% of horizontal development expenses (such as site work and utilities), and 100% of vertical construction costs. Final loan amounts are based on project feasibility, borrower qualifications, and detailed budget analysis.

Yes. For ground-up construction loans, a pre-construction appraisal is required to determine the projected value of the completed property. This “subject to completion” valuation is based on your detailed construction plans, specifications, and comparable sales in the area. The appraisal helps validate project feasibility and is used to determine your loan amount. Turnaround times may vary based on project complexity and local market conditions, and appraisal costs are typically the responsibility of the borrower.

Ground-up construction loans are short-term by design, with typical terms ranging from 12 to 24 months. During the construction phase, payments are interest-only on the drawn funds. The loan is intended to be paid off through either a property sale or a refinance into permanent financing upon project completion. Extensions are available if needed, though they may be subject to additional fees. Term length is determined based on the scope and timeline of your specific project.

Our loan draws are streamlined to keep you on track. Speed isn’t a bonus; it’s built into how we operate. Once your draw request is submitted with the required documentation, we move immediately. Inspections are turned around quickly, approvals happen in-house, and funds are released without third-party delays. We understand that every day counts on a construction site. Crews need to be paid, materials need to be delivered, and momentum can’t stall. That’s why our entire draw process is designed to move at the pace of your project, not the pace of a traditional lender.

No, you don’t need to own the land before applying. Dominion Financial can finance both the land acquisition and the construction, allowing you to secure funding before closing on a lot. We offer pre-approvals so you can shop with confidence, make competitive offers, and be ready to close quickly when the right property comes along. We typically finance up to 50% of the land cost, provided the land is entitled, properly zoned, and suitable for your construction plans.

Yes, refinancing into a long-term DSCR rental loan is a common and strategic exit after completing a ground-up construction project. Dominion Financial offers both the construction financing and the permanent rental loan, making the transition seamless. Once construction is complete and the property is rented, you can refinance into a 30- or 40-year fixed DSCR loan. These loans are based on the property’s rental income (not personal income) and typically offer up to 75% LTV for a cash-out refinance, with no tax returns or pay stubs required. Dominion also offers a DSCR price-beat guarantee, and closings in as little as 10 days. Using one lender for both phases not only simplifies the process but also shortens the timeline, helping you stabilize the property faster and build long-term wealth.

No, there is no prepayment penalty on our ground-up construction loans. You’re free to pay off the loan at any time, whether you finish ahead of schedule, sell immediately, or refinance into long-term financing.

Yes, Dominion Financial does finance spec builds – you don’t need a pre-sale contract to qualify for ground-up construction financing. Many of our borrowers build without a buyer already in place, using market-based appraisals to support the loan. When financing spec projects, we evaluate factors like local market demand, comparable sales, your construction experience, and your financial capacity to complete the project. While pre-sold contracts can strengthen your application, they’re not required.