Private Money Lenders for Ground-Up Construction: Top 9

Table of Contents

• Quick Comparison: Top Private Money Lenders for Ground-Up Projects
• How We Evaluated These Lenders
• Hard Money Construction Loans: What You're Actually Borrowing
  • Loan-to-Cost vs. Loan-to-Value: Why Both Numbers Matter
  • Hard Costs, Soft Costs, and What Gets Financed
• New Construction Loans for Investors: The 9 Best Private Money Lenders
  • 1. Kala Group Capital
  • 2. Foundation Specialty Finance
  • 3. LendSure Mortgage Corp.
  • 4. PML (Private Money Lender)
  • 5. Spreo Capital Partners
  • 6. Roc Capital
  • 7. CV3 Financial Services
  • 8. Lima One Capital
  • 9. Ridge Street Capital
• Requirements for Private Money Ground-Up Construction Loans
  • Track Record, Liquidity, and Collateral
  • Pre-Construction Checklist: Permits, Plans, and Site Development
• Asset-Based Lending in Real Estate: How Draw Schedules Actually Work
  • Typical Draw Phases for a Residential Ground-Up Build
  • Risk Mitigation Strategies for First-Time Builders
• Interest Rates, Origination Fees, and the True All-In Cost
• Which Private Money Lender for Ground-Up Is Right for You?

Last Updated: July 31, 2026

Finding the right private money lenders for ground up construction separates deals that close from deals that collapse. At Kala Group Capital, we work with real estate investors and developers who need fast, flexible financing for new builds. The lender you choose determines your draw schedule flexibility, all-in cost, and whether your project stays on timeline. Below, we've evaluated nine of the strongest private money lenders for ground up construction in 2026, covering loan-to-cost ratios and how draw schedules work in practice.

Hard money construction loans vary dramatically in use thresholds, FICO requirements, draw mechanics, and underwriting speed. The wrong fit can stall your build mid-phase.

Quick Picks:

• Best for Speed: Kala Group Capital, credit decisions in 30 seconds, closings in as little as 3 days
• Best for High LTC: Ridge Street Capital, up to 90% LTC with 100% construction financing
• Best for No Income Docs: LendSure Mortgage Corp., BPO-based loans with no income verification
• Best for Smaller Deals: CV3 Financial Services, loans starting at $200,000 with full interest reserves

Quick Comparison: Top Private Money Lenders for Ground-Up Projects

How We Evaluated These Lenders

We focused on direct lenders with in-house underwriting, since broker-intermediated deals introduce delays when timing is critical. We weighted transparency highly, lenders who publish LTC caps, FICO minimums, and loan ranges clearly earned higher marks. Opaque pricing and hidden origination fees are common in hard money construction loans, and investors deserve clarity upfront.

Hard Money Construction Loans: What You're Actually Borrowing

Hard money construction loans are asset-based loans secured by the real property being built, structured to disburse funds in phases aligned with construction milestones. The capital stack includes the land, construction budget (hard and soft costs), and an interest reserve covering debt service during the build period.

Loan-to-Cost vs. Loan-to-Value: Why Both Numbers Matter

Loan-to-cost (LTC) is the loan amount relative to total projected build costs, including land, hard costs, and soft costs. Loan-to-value (LTV) measures the loan against the after-completion property value.

Both constrain different parts of your capital structure. An 85% LTC caps borrowing relative to spending. An 85% LTV underwriting against finished value is typically more favorable for experienced developers with strong comparable sales. Spreo Capital Partners offers up to 85% LTV and 100% of vertical costs, a materially different proposition than an 85% LTC cap.

Always calculate both ratios before shopping lenders. Bring a detailed cost breakdown and defensible after-completion value.

Hard Costs, Soft Costs, and What Gets Financed

Hard costs are direct construction expenses: labor, materials, site development, and mechanical systems. Soft costs are indirect: architectural fees, permits, engineering, and legal.

Most private money lenders finance hard costs readily. Soft costs are trickier. Some lenders roll soft costs into the total project budget for LTC purposes but won't advance draws against them. Foundation Specialty Finance explicitly covers land acquisition, horizontal improvements, and vertical construction.

New Construction Loans for Investors: The 9 Best Private Money Lenders

1. Kala Group Capital, Best for Speed and Operational Efficiency

Kala Group Capital delivers credit decisions in 30 seconds and preliminary term sheets in under 5 minutes. The 3-day closing window for loans from $500K to $2 million genuinely separates it from competitors. Most hard money construction loans take 7-14 days minimum. Kala Group Capital also covers Fix & Flip, DSCR loans, and Ground-Up Construction, allowing investors to consolidate lending relationships.

Pros:

• Credit decision in 30 seconds
• Term sheets in under 5 minutes
• 3-day closings for $500K-$2M loans
• Covers ground-up, fix & flip, and DSCR

Best for: Experienced investors and developers needing fast, reliable capital without process friction.

Apply Here

2. Foundation Specialty Finance, Best for SFR Developers Needing High LTC

Foundation Specialty Finance targets experienced developers building single-family investment properties, offering up to 85% LTC with coverage spanning land acquisition, horizontal improvements, and vertical construction. Their ACHIEVE platform handles draw management, reducing administrative friction on active builds. Closing in 7-14 days puts them mid-range for speed, but high LTC and comprehensive project coverage make them worth the extra days for developers needing maximum capital efficiency.

Pros: 85% LTC, fast underwriting, proprietary draw platform Watch out for: Focused on residential investment properties; commercial construction won't qualify

3. LendSure Mortgage Corp., Best for Builders Without Traditional Income Documentation

Self-employed developers whose tax returns don't reflect actual cash flow face barriers with most lenders. LendSure solves this with BPO-based loans requiring no income documentation; underwriting is driven by the asset, not the borrower's W-2. The delayed first payment option, available for up to five months, provides cash flow relief during pre-construction and early build phases.

Pros: No income docs, delayed first payment, comprehensive project financing Watch out for: Primarily designed for experienced builders; first-time developers may not qualify

4. PML (Private Money Lender), Best for Absolute Speed

PML funds loans in as little as 48 hours. As a direct lender with in-house underwriting, there's no intermediary slowing the process. Ground-up construction loans include interest reserves built into the loan structure, and draws are funded in 48 hours with no construction-progress audits required before the first draw.

Pros: 48-hour funding, simplified draws, direct lender Watch out for: Rates start at 8.99%; factor this into your project pro forma carefully

5. Spreo Capital Partners, Best for Maximum LTC on Residential Projects

Spreo Capital Partners offers one of the most aggressive LTC structures: up to 85% LTV and 100% of vertical costs financed. For investors maximizing capital efficiency on single-family or multi-family non-owner-occupied residential builds, this structure reduces equity required to get vertical. Loan amounts range from $500,000 to $8,000,000. Low FICO requirements with no income verification make this accessible to a broader range of investors.

Pros: 100% vertical cost financing, low FICO threshold, wide loan range Watch out for: Business/commercial purpose only; no owner-occupied properties

6. Roc Capital, Best for 1-4 Unit Residential Builds

Roc Capital's ground-up program focuses on 1-4 unit residential properties, with up to 75% of land value or purchase price (60% if unpermitted) plus 100% of construction costs financed. This works well for developers building small residential projects where construction cost coverage matters most.

Pros: 100% construction cost coverage, supports smaller residential developments Watch out for: Lower LTC on unpermitted land; secure permits before applying

7. CV3 Financial Services, Best for Full Interest Reserve Financing

CV3 Financial Services structures ground-up construction loans from $200,000 to $5,000,000 with full-term interest reserves financed into the loan, up to 85% LTC including the reserve. This eliminates out-of-pocket debt service payments during construction, improving cash flow management on longer builds. Available terms of 12, 18, and 24 months on an interest-only basis give developers flexibility to match the loan term to realistic build timelines. Minimum FICO of 680 is a clear threshold.

Pros: Financed interest reserves, flexible terms up to 24 months, wide loan range Watch out for: 680 FICO minimum is a hard floor

8. Lima One Capital, Best for Build-for-Rent and Subdivision Strategies

Lima One Capital specializes in vertical construction financing on infill, shovel-ready, fully entitled land. Experienced developers with entitled land ready to go vertical will find Lima One's program well-suited to both build-for-rent and build-for-sell strategies, including medium-level subdivisions.

Pros: Supports small through medium subdivisions, fast capital distribution, strong investor focus Watch out for: Some marketing is Texas-focused; confirm your state is covered before applying

9. Ridge Street Capital, Best for Maximum LTC with Prior Build Experience

Ridge Street Capital offers up to 90% LTC with 100% construction financing, the highest LTC structure reviewed here. Closing in as little as 10 business days puts them mid-range for speed. Rates run from 10.99% to 11.99%, and the program requires prior building or heavy rehab experience.

Pros: 90% LTC, 100% construction financing, 10-business-day closing Watch out for: Higher rates and experience requirement; poor fit for first-time builders

Requirements for Private Money Ground-Up Construction Loans

Private money ground-up construction loans are underwritten on the asset and the borrower's track record, not tax returns. This is the fundamental difference between asset-based lending and bank financing.

Track Record, Liquidity, and Collateral

Most private money lenders evaluate three things: what you've built before, how much liquidity you have, and what collateral you're offering. A borrower with two completed ground-up projects and strong liquidity accesses better terms than a first-timer with identical credit. Liquidity requirements vary by lender, but you need enough cash reserves to cover cost overruns and carry costs during draw delays. Collateral is the land and improvements being built; the lender holds a first-lien position throughout construction.

Pre-Construction Checklist: Permits, Plans, and Site Development

Before approaching any lender, have these items ready:

• Signed purchase contract or proof of land ownership
• Approved building permits (or permit application status)
• Architectural plans and engineering drawings
• Detailed construction budget with hard costs and soft costs itemized
• General contractor agreement with licensed GC
• Site development plan including utilities and grading
• Comparable sales supporting your after-completion value
• Proof of liquidity (bank statements, brokerage statements)
• Prior project history with documentation

Lenders offering 48-hour funding still need this documentation. Speed comes from simplified underwriting, not skipped due diligence.

Asset-Based Lending in Real Estate: How Draw Schedules Actually Work

Asset-based lending in real estate construction works through a draw schedule: a predetermined disbursement plan tied to verified construction milestones. The lender holds the full loan commitment but releases funds incrementally as each phase is completed and inspected.

Typical Draw Phases for a Residential Ground-Up Build

Each draw typically requires inspection by the lender's inspector or a third-party. PML waives construction-progress audits before the first draw, accelerating early-phase funding. Most lenders require inspection sign-off before releasing each draw.

Risk Mitigation Strategies for First-Time Builders

First-time builders face steeper paths to private money construction financing, but obstacles are manageable with proper preparation. Budget 10-15% contingency on top of hard costs to demonstrate realistic planning and reduce mid-project capital shortfall risk. Partner with an experienced general contractor with a verifiable track record. Lenders sometimes accept a strong GC relationship as a partial substitute for the borrower's own history. Start with a lender whose minimum loan size matches your project scale.

Interest Rates, Origination Fees, and the True All-In Cost

The advertised rate on a hard money construction loan rarely reflects the all-in cost. Origination fees, draw fees, inspection fees, extension fees, and prepayment terms all affect total capital cost. Rates in this comparison range from 8.99% to 10.99%-11.99%. An 8.99% loan with two origination points and $500 per-draw inspection fees may cost more than an 11% loan with one point and free draws, depending on build timeline and draw frequency.

The right question: "What is the total all-in cost if I close on this date, draw on this schedule, and pay off at month 12?" Get that number in writing before committing.

Which Private Money Lender for Ground-Up Is Right for You?

Choosing among private money lenders comes down to three variables: your timeline, your LTC needs, and your experience level.

If speed is the constraint, Kala Group Capital's 30-second credit decisions and 3-day closing for loans from $500K to $2M is the strongest option. If maximum LTC is the priority, Ridge Street Capital's 90% LTC with 100% construction financing offers the highest structure reviewed here. For developers needing income-documentation flexibility, LendSure's BPO-based approach removes the biggest barrier self-employed builders face. For deals where a financed interest reserve is essential to cash flow, CV3 Financial Services structures that directly into the loan.

The right private money lender for your ground-up project is the one whose program structure matches your deal, not just the one with the lowest advertised rate.

Ground-up construction financing is complex, and the wrong lender can stall a project at the worst possible moment. Kala Group Capital delivers credit decisions in 30 seconds, term sheets in under 5 minutes, and closes loans from $500K to $2M in as little as 3 days, built specifically for investors who can't afford to wait. Apply Here at kalagroupcapital.com and get your term sheet before your competition does.

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