GROUND-UP CONSTRUCTION LOANS
Structured financing for real estate development—from land acquisition to project completion.
What Are Construction Loans?
Construction loans provide financing for ground-up real estate development, covering land acquisition, site preparation, and vertical construction through project completion. Unlike permanent mortgages, construction loans disburse capital in draws tied to project milestones, so you only pay interest on what has been advanced.
How they work: At closing, the lender commits the full loan amount. As construction progresses, draws are released against verified completion of defined phases (foundation, framing, roofing, mechanical, finish). Loan terms typically run 12 to 24 months with interest-only payments during construction. At completion, the loan converts to permanent financing or is repaid via sale proceeds.
Typical terms: LTC (Loan-to-Cost) up to 80–85% of total project cost. LTV based on completed value up to 65–70%. Loan amounts from $500,000 to $25,000,000+. Rates vary based on project type, sponsor experience, and market conditions.
Processed through Gloven Capital — These products are originated through Gloven Capital, Glovenco’s dedicated real estate capital division. You can also apply directly at glovencapital.com.
Who this is for:
- Residential developers building single-family, townhome, or condo projects
- Multifamily developers constructing 5+ unit rental properties
- Commercial developers building office, retail, or industrial space
- Mixed-use developers combining residential and commercial uses
- Spec builders acquiring lots and constructing for resale
- Experienced sponsors with defined exit strategies (sale or refinance)
Key Benefits:
- Draws against completion milestones — capital released as work is verified
- Interest-only during construction preserves cash flow
- Finances both land and vertical construction in a single facility
- Can cover 100% of hard construction costs in some programs
- Converts to permanent financing or DSCR loan at stabilization
- Real estate developers
- Builders and sponsors
- Multifamily and residential projects
- Commercial development projects
- Ground-up construction opportunities
- Investors with development experience
- Structured draw schedules aligned with project milestones
- Financing from acquisition through completion
- Flexible underwriting based on project strength
- Ability to scale development projects
- Access to private and institutional capital sources
- Designed for execution and efficiency
⭐ Basic Qualification Requirements
🟢 Development plan and budget
🟢 Construction timeline
🟢 Licensed builder or contractor
🟢 Equity contribution or land ownership
🟢 Defined exit strategy (sale or refinance)
⭐ Common Use Cases
🟢 Residential developments
🟢Multifamily construction
🟢 Commercial building projects
🟢 Mixed-use developments
🟢 Spec construction