New Construction
Loans From The
Ground Up.

A hard money construction loan is a short-term loan used by real estate investors to finance ground-up residential construction or teardown rebuilds. These loans are commonly used for investment properties, not primary residences, and are issued by private lenders rather than banks.

With a new construction hard money loan, a portion of the loan funds the lot acquisition at closing, while the remaining construction funds are held in escrow and released through a draw schedule. Draws are distributed after specific phases of construction are completed and verified by inspection. Once approved, funds are typically released within 24 hours, helping keep projects moving efficiently and on budget.

This structure protects both the investor and the lender while allowing experienced builders to scale projects faster than with conventional construction loans.

Private lenders offer construction loans that are faster, more flexible, and less documentation-heavy than traditional bank construction financing.

Hard money construction loans are primarily based on the value of the project, including the land and the completed property (ARV), rather than personal income or tax returns. While there is no minimum credit score requirement, experience with ground-up construction is essential.

ABL’s private construction loan program can fund:

• Up to 70% of land value
• Up to 100% of construction costs
• Up to 75% of after-repair value (ARV)

With interest rates typically ranging from 9%–11%, terms of 12–24 months, and the ability to close in as little as 10 days, seasoned investors use private construction loans to stay competitive in fast-moving markets.

Hard money construction loans can close significantly faster than traditional construction loans.

At ABL, qualified new construction loans have a closing time of approximately 10 days. This is substantially faster than conventional construction loans, which often take 60 days or more due to bank underwriting, income verification, and layered approvals.

Fast closings allow investors to secure land, lock in contractors, and keep projects on schedule without losing deals to slower financing.

Qualifying for a hard money construction loan is based more on project viability and investor experience than personal financial documentation.

To get started, investors complete a streamlined loan application and speak directly with a loan officer. If the deal fits program guidelines, underwriting will review:

• Prior ground-up construction experience
• Construction plans and scope of work
• Project budget and timeline
• Market and exit strategy

If approved, ABL issues a transparent written term sheet outlining loan terms, rates, fees, and draw structure. The loan then moves quickly through processing and is closed by an attorney, ensuring clarity and speed with no hidden fees.

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.

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.