Buy, demolish and rebuild
Show the purchase price, demolition cost and new build budget separately. We review the acquisition and construction phases together, including the time needed to obtain permits.
Ground-up construction · Teardown and rebuildConstruction financing.
Construction financing.
Built around your next project.
Capital for builders planning ground-up construction, spec homes and teardown projects. We review your budget, land position and financing request to explore suitable lender options.
The short answer
Construction loans for builders
Stonehaven arranges construction financing through third-party lenders. Qualifying deals may access up to 100% of eligible project costs. The actual structure depends on the budget, land equity, completed value, builder profile and repayment plan. It does not automatically cover every expense or mean zero cash is needed.
- Project review
- Budget, land equity and completed value
- Potential leverage
- Up to 100% of eligible LTC on qualifying deals
- Coverage
- Commercial programs nationwide, subject to state availability
Capital for the way you build
Build on land you own
Land equity may strengthen the structure. Start with your ownership basis, estimated land value and current payoff. Existing debt must be accounted for before equity can support the new loan.
Build to sell or hold
A spec sale and a rental refinance need different exit assumptions. Include comparable sales for a sale exit, or supported rent and expense estimates for a rental plan.
100% LTC and 100% of construction costs are different
Ask what the lender counts as cost before comparing two proposals. A large headline percentage can describe a narrower budget than you expect.
| Measure | What it answers | What to verify |
|---|---|---|
| Loan-to-cost (LTC) | Loan commitment ÷ lender-recognized project cost | Which acquisition, hard costs, soft costs and reserves are eligible? |
| Construction-budget coverage | How much of the approved build budget is financed | Does acquisition or existing debt require a separate contribution? |
| Completed-value leverage | Loan commitment ÷ lender-supported completed value | Which appraisal, value basis and value limit apply? |
| Cash needed | Your required contribution and working cash | Include excluded costs, deposits, draw timing and contingency. |
Transparent assumptions
Example: a $3.5 million teardown and rebuild
Hypothetical planning example, not a closed transaction, quote or approval. All amounts below are assumptions. The lender may recognize a different cost basis.
- Acquisition
- $1,100,000
- Demolition and construction
- $1,800,000
- Design, permits and other soft costs
- $250,000
- Financing and carrying-cost allowance
- $200,000
- Contingency
- $150,000
- Assumed total project cost
- $3,500,000
- Assumed completed value
- $4,800,000
A $3.15M request would equal 90% of the assumed cost and about 65.6% of the assumed completed value. The arithmetic gap is $350,000 before any excluded costs or changes to the lender’s basis.
A $3.5M request would equal 100% of that assumed cost, but only about 72.9% of completed value. Those calculations describe the request, not a lender’s available limits.
If the lender excludes an allowance, advances draws after completed work, or requires additional reserves, the builder can still need cash. A 100% eligible-cost structure must be checked line by line.
Compare the funding schedule, not just the commitment
At closing
Identify what funds acquisition or payoff, which costs have already been paid, and whether your equity goes in before loan proceeds.
During construction
Confirm inspection requirements, draw documentation, reimbursement timing, retainage and treatment of change orders. Keep a working-cash plan between draws. Ask which milestones release funds and whether deposits require your cash before reimbursement.
At completion
Build time for listing, sale or lease-up into the exit. Check maturity, extension conditions and the payoff calculation before relying on a refinance. Match the proposed maturity to construction plus marketing time; get extension conditions, notice deadlines and any costs in writing.
What to send for an initial construction review
- Property location, purchase contract or existing ownership and payoff summary.
- Line-item budget separating acquisition, demolition, hard costs, soft costs, reserves and contingency.
- Plans, permit status and a realistic construction schedule.
- Builder or general contractor background and relevant completed projects.
- Estimated completed value with supporting comparable sales, or a rental operating plan.
- Requested financing, available equity, intended exit and desired closing date.
Questions before you start
Can I get 100% LTC construction financing?
Potentially. Stonehaven has lender relationships that can consider up to 100% of eligible costs on qualifying deals. Eligibility, land equity treatment, leverage limits, liquidity and guarantees depend on the actual lender and file.
Does land equity replace my cash down payment?
It may help, but the lender must accept the value and ownership basis. A mortgage payoff reduces the unencumbered equity, and separate cash may still be needed for excluded costs and construction cash flow.
How do project cost, loan amount and completed value differ?
Total project cost is the budget to acquire and complete the project. The loan amount is the financing requested, and completed value is the supported estimate of what the finished property will be worth. Submit all three separately so the lender can review cost, value and your required contribution.
How does builder experience affect the review?
An experienced builder can show comparable completions. A first-time sponsor should explain the contractor team, oversight and liquidity. Ask which experience requirements apply; this page does not promise a first-time-builder program.
Is interest charged on funds advanced or the full commitment?
Confirm the calculation basis in the proposal. If interest-only payments are proposed, request a sample draw-by-draw payment schedule, including any minimum-interest or unused-funds charges. Interest-only payments do not reduce principal.
How quickly will I get feedback?
We aim to provide initial deal feedback in under one hour after the inquiry reaches our team. That is an initial response, not a credit decision, term sheet or closing commitment. We follow up by text.
Project review
Tell us about your construction project
Share the basics. We follow up by text and aim for initial deal feedback in under one hour. Initial feedback is not credit approval.
Keep account numbers, tax records and private documents out of this public form. We can arrange a secure next step for documents.
Related guides and examples
Company-reported Brookhaven construction closing
Read the reported construction-budget financing example, including the role of land equity.
Explore →Already own the property?
Understand how equity and an existing mortgage payoff fit into the review.
Explore →Renovation instead of a new build
Compare financing for purchase, rehab and resale.
Explore →Sources and editorial standards
The OCC’s CRE handbook explains the role of construction budgets, borrower equity, draw controls and repayment planning. It is banking guidance, not a Stonehaven product sheet or a promise of eligibility. The CFPB overview provides consumer construction-loan background, not eligibility rules for a business-purpose project.
Updated September 20, 2026. Editorial standards · Meet the team
Prepare the next decision
Separate interest reserves, construction contingency and working cash before comparing the total loan commitment with the cash needed during construction.
Acquiring a site, developing a subdivision or financing finished lots? Explore our land development and residential lot financing page to connect acquisition, site work, builder contracts and lot releases in one project review.
If the investment needs improvements, our first rehab loan guide connects the scope, contractor payments and draws with the planned sale or refinance. Use the investment deal checklist before comparing proposals.
For a project in design or approaching construction, the construction financing guide for architects connects plans, scope, budget and the draw schedule. Review it with the client and builder to prepare questions about costs and change orders before seeking financing.