Construction Loans for Real Estate Investors
Funding for ground-up new construction on single-family, 1–4 unit properties, released in draws that match your build schedule instead of paperwork holding up your crew.
Construction loans, at a glance
Ground-up new construction, funded around your build
Whether you're building on a vacant lot or replacing a tear-down, a construction loan works differently from a standard fix-and-flip loan: money is released as the work happens, not all at once. You'll provide details on the property itself, such as ownership and zoning, then on the construction budget, timeline, and your experience. Once everything is approved, funds are released on a draw basis, either reimbursing you for money you've spent or funding you against submitted invoices, so a completed milestone doesn't sit waiting on a lender's internal review cycle.
How draws work
- Budget and timeline review.SFI Loans underwrites the full project budget and construction schedule before closing, so the draw plan is set from day one.
- Initial funding at closing.Purchase or lot-acquisition funds close first, along with the first construction draw if work begins immediately.
- Milestone draws as work completes.Each completed phase, foundation, framing, mechanicals, finishes, triggers the next draw, reimbursing money you've spent or funding submitted invoices once the work is verified.
- Final draw at completion.The last draw releases at project completion, ready for sale, refinance, or lease-up.
Construction loan questions, answered
What is a construction loan for investors?
A construction loan for investors funds ground-up new construction on a non-owner-occupied, single-family 1–4 unit property, released in draws as the work is completed rather than as a single lump sum at closing.
Is a construction loan the same as a hard money loan?
They're related but not identical. A hard money loan typically funds the purchase and rehab of an existing structure; a construction loan funds ground-up new construction. SFI Loans underwrites both around the deal, not just personal income.
Do I need a licensed general contractor?
SFI Loans works with investors using a licensed general contractor or an experienced self-managed build team. What matters most is a realistic budget and timeline the draw schedule can be built around.
Ready to break ground on your next project?
Get prequalified before you finalize your budget, so financing is never the reason a build stalls.