Apply for a Construction Loan

A Guide by Dylan Cleland and Lance Gebhart
Surfside Properties 🤝 Groves Capital
  1. Apply for a Construction Loan
  2. Application
    1. Approval Timeline Expectations
  3. Core Construction Programs
    1. 🏠 One-Time Close (OTC) Construction Loan
    2. 💰 Hard Money Bridge Loan
    3. 🏠 Build-to-Rent Program
  4. Construction Financing
    1. 🏗️ Infrastructure Financing
    2. 🛠️ Construction Line of Credit
    3. 🗺️ Lot Loan
    4. 🔄 Blanket / Cross-Collateral Loan

Application

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Credit Authorization form

Approval Timeline Expectations

Pre-Approval: Possible same-day/one business day with complete application, credit report, and documentation.

Full Approval: Typically 7-30 days, depending on choice of loan program, third-party providers, and timely document submissions.

Core Construction Programs

🏢 Comprehensive Construction Financing Solutions — From Dirt to Done!

Our construction financing programs are designed for investors, builders, and homeowners who want flexible funding options with competitive terms. Whether you’re building a primary residence, taking on a fix-and-rent project, or scaling an investment portfolio, we provide tailored loan solutions to help you move confidently from plans to completion.

🏠 One-Time Close (OTC) Construction Loan

Combines construction financing and permanent financing into a single loan up to $1.29M or higher, so you only need one closing. Typically offers lower rates than traditional construction loans.

Details
  • Documentation: Full documentation required. Wage earners must provide paystubs and W-2s; self-employed borrowers must provide tax returns.
  • Loan Limits: Up to $1.29M (conventional/USDA programs). VA loans have no maximum.
  • Down Payment: 5% for primary residences; 20% for investment properties.
  • Property Type: Primary residences, second homes, and investment properties.
  • Benefits: One set of closing costs, potential to “float down” to a lower rate during construction, smooth transition to permanent financing.
  • Considerations: Stricter qualification guidelines; slower draw releases due to third-party inspections and contractor approvals.

💰 Hard Money Bridge Loan

Fast, flexible financing designed for investment properties only. Offers high leverage (up to 90% of total project cost) and competitive rates for projects that need quick funding.

Details
  • Documentation: No income documentation required. Approval based on contractor experience and project feasibility.
  • Loan Limits: Finance up to 90% of the total project cost.
  • Close Time: Typically 14–30 days; can be faster in some cases.
  • Property Type: Residential, multi-unit, mixed-use, commercial, and industrial properties.
  • Benefits: Quick approvals, minimal documentation, self-build options allowed, no prepayment penalties, and interest-only payments on drawn funds.
  • Considerations: Higher interest rates and shorter terms compared to conventional loans. Most terms run 12–24 months with a balloon payment.

🏠 Build-to-Rent Program

Designed for investors planning to hold properties after construction. Similar to a one-time close but tailored for long-term rental strategies.

Details
  • Qualification: Approval based on projected DSCR (Debt Service Coverage Ratio) and completed property value.
  • Loan Structure: Single closing; converts to DSCR loan after construction, qualifying off projected rental income versus monthly payment.
  • Close Time: Approximately 15–30 days, depending on permits, plans, budgets, and blueprints.
  • Property Type: Investment properties only.
  • Benefits: Only one set of closing costs, streamlined process, ability to lock in financing before construction is complete, seamless conversion to long-term rental loan.
  • Considerations: Rates are higher than standard DSCR loans, but lower than most hard money or bridge loans.

Construction Financing

Tailored programs designed to meet the unique needs of builders, developers, and investors working on projects of every scale—from single-lot purchases to $200M+ developments.

🏗️ Infrastructure Financing

Financing built for large-scale developments exceeding $200M in total project cost with only $4M liquidity required.

Details
  • Loan Structure: Competitive rates, no down payment requirement, no maximum loan amount. Minimum $4M liquidity required.
  • Benefits: Simplifies access to substantial capital, with easier ongoing draws that reduce the need for repeated approvals.

🛠️ Construction Line of Credit

Flexible credit facility for experienced builders and contractors managing multiple projects securing up to $8M credit line.

Details
  • Loan Size: $5M–$8M credit line, covering 100% of construction costs for California lots (after initial land purchase).
  • Requirements: Full documentation required, plus a resume showing completion of 20+ projects within the last 5 years.
  • Benefits: Streamlined funding across multiple builds without needing separate loans for each project.

🗺️ Lot Loan

Financing designed for clients purchasing land for future development.

Details
  • Documentation: Available with both full documentation and alternative documentation programs.
  • Close Time: Typically 7–21 days.
  • Benefits: Provides liquidity for initial engineering and planning expenses. Down payment requirements range from 35–50%. with a balloon payment.

🔄 Blanket / Cross-Collateral Loan

Uses equity from existing properties to fund new construction or acquisitions, eliminating the need for cash down payments.

Details
  • Documentation: Commonly structured with alternative documentation; flexible underwriting.
  • Close Time: Typically 14–30 days.
  • Benefits: Lower rates than hard money or bridge loans, helps preserve liquidity, and allows clients to leverage existing portfolios for expansion.