A flip is a house that already exists. Ground-up is dirt, a set of plans, and a build that has to get out of the ground on someone else’s calendar. The loan is different because the collateral is different: you are funding land and vertical construction, not a cosmetic rehab on a standing property.
We broker that file. Funded Funding is a private-money brokerage — not a bank, not NMLS-licensed, not a consumer mortgage shop. Borrowers close in an LLC (or another business entity). If you still need the entity conversation, start with why investors fund through an LLC. This post is the construction product.
What a ground-up construction loan is
A construction / ground-up loan funds a new build. Typical use: you control (or are buying) the land, you have a scope, and you need capital staged through the project so the dirt becomes a finished asset you can sell or hold.
The live product points on the site — the ones we will not invent past — are:
- Up to 90% of land + 100% of construction
- Flexible draw schedules
That is the published box. Your quote still depends on the land, the budget, the projected value, the entity, and the lender. We will not fake a term length, a rate, or a “we fund every state” line to make this sound bigger than it is.
Why the build sits in your LLC
Same rule as Fix & Flip and DSCR: this is a business-purpose loan to an entity. The LLC takes the land, the construction funds, and — when you are done — the finished property. You are not walking this in as a primary-residence construction mortgage.
We are not lawyers. We will not tell you which state to form in or how to register as a foreign entity. We will tell you the loan will not close in your personal name as a consumer. Get the entity right before you ask a lender to fund a foundation.
What the money is for
Land and construction. On the application the ground-up branch asks for land cost, build cost, projected ARV, build timeline in months, and permit status (ready, in progress, or not started). Those are the bones of the file.
What it is not: a Fix & Flip with a bigger rehab line. If the structure is already there and you are renovating, that is usually the flip product — up to 95% of purchase and 100% of rehab, 6–24 months, rehab draws. If you are building, stay on this page. Mixing the two stories in one application is how files sit.
It is also not a loan for the house you plan to live in. Investor property. Entity close.
How flexible draws work on a build
“Flexible draws” means the schedule can follow the project instead of a one-size consumer construction product. It does not mean the full build cost shows up in your account at the dirt-work meeting.
Funds release as work is in place — site, foundation, framing, mechanicals, finishes, final — against inspections or milestones the lender agrees to. That is how construction capital is supposed to move. Budget your GC, your deposits, and your contingency as if the next draw has to be earned. If permits are “not started,” do not expect the vertical money to run ahead of the paper.
We cannot write your draw schedule in a blog post. We will not pretend there isn’t one.
What we look at on a construction file
- Land and build cost. Two numbers, not one blob called “the project.”
- Projected ARV. What this is worth finished, with a reason — not a round number that makes the spreadsheet green.
- Timeline. Months, not “ASAP.” The loan has to outlast the build with room to spare.
- Permits. Ready, in progress, or not started. Honesty here is faster than optimism.
- The entity. LLC (or other business entity) that can hold land and a construction loan.
- Experience, credit, liquid funds. They matter and they vary by lender. A first build is a different conversation than a fifth. We will not invent a score floor that is not on the site.
When the file is complete, we move. Fast approvals are the point of private capital versus a bank committee. Incomplete plans and a shrug on permits are not a speed problem. They are a file problem.
How construction sits next to Fix & Flip and DSCR
Same desk, different job:
- Construction / ground-up — land plus the build, flexible draws, entity close.
- Fix & Flip — standing property, purchase plus rehab, 6–24 months, rehab draws. Use that when you are renovating, not starting from dirt. See Fix & Flip loans for LLC investors.
- DSCR — for a finished rental that pays for itself. After you build and lease it, some investors refinance into a DSCR hold so the construction loan is not a forever note. Read how DSCR works before you assume that exit.
Bridge and GAP live here too: a short bridge toward permanent financing, or a gap between what the first piece of capital covers and what the project costs. If you are stacking sources, say that in the deal story. Do not hide a second lien and hope nobody asks.
Mistakes that stall a construction file
- Calling a gut rehab “ground-up” (or the reverse). Use the product that matches the dirt. The application has separate branches for a reason.
- No budget split. Land cost and build cost are different lines. Lump them and we cannot place the leverage the site advertises.
- Permits as a future problem. “We’ll pull them when we’re funded” is how you sit in interest and wait. Tell us the real status.
- Timeline that only works if nothing goes wrong. Weather, inspections, and change orders exist. Give the loan enough months to be a construction loan.
- Personal-name thinking. You close in the LLC. If that sentence is still a debate, you are not ready to break ground on this capital.
How to put a build in front of us
- Entity that can close. LLC or other business entity. Title and loan in the entity’s name.
- The five numbers and facts. Land cost, build cost, projected ARV, timeline in months, permit status. Plus the address and what you are building.
- Apply on the same form we use live at Funded Funding, or start here: the application. Questions before you fill it out: (520) 552-7065.
Process from there is the same as the rest of the desk: apply → pre-approve → finalize terms (leverage, rate, term, draws) → close in the entity and fund the work in stages.
Frequently asked questions
Do I need land already, or can the loan buy the lot?
The product is written as land plus construction — up to 90% of land and 100% of the build. Whether your file is an acquisition of the lot, a lot you already hold, or both is a deal-specific question. Put the land cost and the situation in the application instead of assuming one structure.
What if permits are not started?
Then that is the status. Some files can still be discussed. Pretending they are ready is worse. We are not a permit expediter, and we will not give you legal or municipal advice. We will not send a lender a story that falls apart on the first call to the city.
Can I live in the house when it is done?
These programs are business-purpose loans on investor property, closed in an entity. If your plan is to occupy it as a home, this is the wrong product and the wrong broker. We will not stretch a construction file into a consumer mortgage we are not licensed to do.
Is this available everywhere?
No. Not available in every state. Terms vary by lender, property, and borrower entity. Ask before you spend money on plans we cannot finance.
Ready to get funded?
If you have an LLC, a piece of land or a lot under contract, and a build you can put in numbers, send the file. Construction, Fix & Flip, DSCR, bridge, and GAP all come through the same intake. We will tell you which one the deal is.
We will not quote you a fake funded-loan count to get the click. We will read what you sent.
Ready to get funded?
If you have an LLC and a deal, apply here. Same intake form as the live site.