A ground-up construction loan is used to finance the entire construction process of a new property—from land acquisition to the final build. Unlike renovation loans, these loans support projects starting from the foundation and structure up.

These loans are ideal for real estate investors, developers, and builders planning to construct residential, commercial, or mixed-use properties. The financing is typically released in phased draws tied to specific construction milestones. Funds are disbursed incrementally as work progresses, ensuring accountability and efficient use of capital. Common uses of funds include grading, excavation, permits, foundation work, framing, plumbing, electrical systems, roofing, and finish-outs.