Construction financing for architects.
Build a workable capital plan.
Connect the drawings, construction budget and borrower’s funding needs before the build starts. Stonehaven reviews business-purpose construction scenarios through third-party lenders, subject to state and program availability.
What does a lender need beyond the architectural plans?
A construction financing review connects the property, borrower, scope, cost and repayment plan. Architectural drawings explain what will be built, but they do not establish the amount a lender will advance. Stonehaven helps owners and builders organize the financing request for ground-up construction, spec homes, teardowns and substantial improvement projects.
Start with the version of the plans actually being priced. A change in square footage, foundation design or finish schedule can change the budget and requested loan. Identify unresolved decisions before comparing financing proposals.
Separate the construction price from the full project budget
- Land or acquisition: purchase price or current ownership basis, existing payoff and acquisition-related costs.
- Hard costs: demolition, site work, utilities, structure, labor, materials and contractor pricing for the defined scope.
- Soft costs: architecture, engineering, surveys, permitting and other professional costs, with paid and unpaid amounts separated.
- Financing and carrying costs: proposed loan expenses, interest, insurance, taxes and costs during the sale or refinance period.
- Contingency: a specific allowance for project uncertainty, kept separate from planned upgrades and the developer’s expected profit.
Confirm who prepares estimates and who updates them. AIA’s guidance on designing to budget explains that those responsibilities depend on the owner-architect agreement. The financed budget should be reconciled with the contractor’s current scope.
Up to 100% eligible LTC still needs a cash plan
Some of Stonehaven’s lending partners can consider up to 100% of lender-eligible project costs for qualifying business-purpose transactions. Loan-to-cost (LTC) compares the loan with the cost basis the lender accepts. It does not mean 100% of the finished property’s value or that every expense will be funded.
Ask which costs are eligible, what must be paid before closing and when construction proceeds become available. Land equity, sponsor experience, value and other requirements can affect the structure. Reserves, excluded costs, overruns or the gap before a draw may still require borrower cash. See our broader construction loan guide for cost and value distinctions.
Show the property’s actual readiness
- Site control: owned property, a purchase contract or another documented arrangement, plus any existing mortgage.
- Design stage: concept, schematic, construction documents or an identified revision with its pricing date.
- Approvals: what is approved, submitted or still proposed, including demolition, zoning and building permits where relevant.
- Delivery team: builder or general contractor, relevant experience, proposed contract and construction schedule.
- Exit: intended sale, rental hold or another repayment source, with supporting assumptions.
Already owning the land does not automatically settle the equity contribution. Ask how the lender values it, treats the payoff and recognizes documented costs already incurred.
Map the draw schedule against the payment schedule
A useful review compares three dates for each major item: when the supplier or contractor needs payment, when the draw request can be submitted, and when funds may be released. Ask the lender how inspections, invoices, title updates, lien releases, retainage and approval steps affect that timing.
For example, a supplier may require a deposit before an item is installed. Identify who funds that deposit and whether the proposed loan permits an advance or later reimbursement. Do the same for the first construction invoice and any change order. A loan commitment is not the same as money already available in the project account.
The OCC’s CRE lending handbook explains construction monitoring and disbursement controls for supervised banks. Individual lender procedures and private lending structures differ.
Construction financing questions from architects
Can a client get a review before permits are issued?
Yes, for an initial discussion. State exactly which approvals remain outstanding. A preliminary review does not confirm that the lender will close or release construction funds before permits.
Will the loan reimburse earlier architecture fees?
Possibly, if the lender accepts the documented cost and its timing. Keep invoices and proof of payment, but do not promise reimbursement or make the design contract dependent on an assumed loan.
Does this apply to a client building their own home?
Owner-occupied construction requires a separate consumer-lending review. Use residential lending for properties in Georgia, Alabama, Tennessee, Florida, North Carolina or South Carolina. The business-purpose LTC discussion above is not a residential offer.
What if the project is still a development concept?
Start with development financing for architects to separate site, approvals, feasibility and future construction stages. For the introduction process, see architect financing partners.
Review a construction financing scenario
Share the property state, ownership status, project value, build budget, requested amount and target closing date. Tell us the drawing and permit stage. We follow up by text.
No active project yet? Share your contact details and the types of projects your firm designs. Project figures can be left blank.
Use your own contact details. Start with a general project summary and obtain client permission before sharing their information. Keep client names, financial records and private documents out of this form.
For a client who will live in the home, use our residential inquiry.
Sources and editorial standards
Primary sources explain budget responsibilities and lending concepts. The lender must confirm eligible costs, leverage, conditions and draw procedures for the actual project.
- AIA: The architect’s obligation to design to budget
- AIA: Managing the contingency allowance
- OCC: Commercial Real Estate Lending handbook
Updated September 20, 2026. Editorial standards · Meet the team