New Construction
Loans From The
Ground Up.

Most hard money lenders require prior ground-up construction experience to qualify for a new construction loan.

At ABL, qualifying experience generally includes a project that:

• Was completed and sold or refinanced within the last 36 months
• Was completed within 36 months from start to finish
• Meets ABL’s definition of a new construction project
• Lists the borrower as the Sponsor on title

Experience is verified through underwriting due diligence to ensure the borrower has successfully managed comparable construction projects.

A new construction investment property typically involves ground-up residential development on a vacant lot or a teardown where an existing structure is demolished and rebuilt.

Projects may also qualify as new construction if they involve a major addition that increases the property’s gross living area by more than 100% of the original square footage. Heavier renovations that meet this threshold may be underwritten as new construction rather than a fix-and-flip loan.

All projects must align with ABL’s underwriting standards and be reviewed for feasibility, market demand, and completion timeline.

A hard money construction loan is a short-term loan used by real estate investors to finance ground up residential construction or teardown rebuilds. A portion of the loan funds the lot acquisition at closing, while construction funds are held in escrow and released through a draw schedule as phases are completed and verified by inspection.

New construction loans fund the project in two parts: land or lot acquisition at closing, then construction costs released in draws as work progresses. With Asset Based Lending, draws are approved after inspection and funds are typically released within 24 hours, keeping crews on schedule from foundation to final walkthrough.

Qualification centers on project viability and builder experience rather than personal income documentation. Asset Based Lending reviews prior ground up construction experience, construction plans and scope of work, project budget and timeline, and the market and exit strategy, with a minimum FICO credit score of 660.

New construction loans from Asset Based Lending cover up to 75% of the purchase price for land acquisition and 100% reimbursement on construction costs, up to 75% of the completed property’s after repair value. Loan sizes range from $75,000 to $50 million.

Construction funds are held in escrow and released in draws tied to completed phases of work. Borrowers submit a draw request, an inspection verifies progress (often virtually), and once approved, ABL releases funds in as few as 24 hours through its FastDraw process.

Asset Based Lending closes new construction loans in as few as 20 days, compared to 60 days or more for conventional construction financing. Fast closings let builders secure land, lock in contractors, and keep projects on schedule.

Private construction lenders underwrite on the value of the land and completed project rather than personal income or tax returns, with less documentation and faster closings than banks. Because ABL funds and services loans in-house, the draw schedule stays under one roof, and crews are never waiting for outside approval.

Yes. Asset Based Lending finances ground up construction of single-family homes, multi-family properties, and condos for investment purposes, with blanket loans available for builders running multiple projects or multi lot communities.