# New Construction Loans for Real Estate Investors: How to Finance Your Build Canonical HTML: https://capitalpartnerloans.com/blog/new-construction-loan-for-real-estate-investors Source site: Capital Partner Loans New Construction Loans for Real Estate Investors: How to Finance Your Build New construction loans fund ground-up builds on a draw schedule. 660+ credit, up to 82.5% LTC, no appraisal to close. Here is how investors qualify. ## What is a new construction loan for real estate investors? A new construction loan for real estate investors is a short-term, draw-based loan that funds ground-up residential builds from lot acquisition through certificate of occupancy. Unlike a bridge loan, which finances the purchase and renovation of an existing structure, a new construction loan disburses capital in stages after each construction milestone is inspected and verified. Capital Partner Loans offers construction financing at 10.90% to 12.90%, up to 82.5% LTC, with no appraisal required to close. ## What credit score do I need for a new construction loan? Capital Partner Loans requires a minimum 660 credit score for new construction loans. This is higher than the 600 minimum for bridge loans because ground-up construction adds execution risk on top of borrower risk. A higher credit score reflects payment reliability and often improves your rate. Investors with scores below 660 but with a strong construction track record and solid deal fundamentals should still submit the deal, as lenders evaluate the full picture. ## How do construction loan draws work? Construction loan funds are not released as a lump sum. They are disbursed in stages tied to verified construction milestones. After closing, you submit a draw request when a construction phase is complete. The lender orders an inspection to confirm progress. If the inspection passes, funds are released within 48 hours. Common draw stages include site preparation and foundation, framing, rough-in trades (plumbing, electrical, HVAC), drywall and finishes, and final completion. ## Can I get a new construction loan as a first-time builder? New construction loans from Capital Partner Loans require prior ground-up or closely related construction experience. First-time builders without a documented track record will generally not qualify under this program. Investors with extensive large-scale renovation experience may be considered case-by-case. If you are new to building, starting with a fix and flip bridge loan is the best path for building your experience record before applying for ground-up construction financing. What is the difference between a construction loan and a bridge loan? A construction loan funds a ground-up build from raw land through certificate of occupancy, with funds released in draws as milestones are verified by inspection. A bridge loan funds the purchase and renovation of an existing structure, typically with fewer disbursement requirements and faster closings. Bridge loans are more accessible to newer investors and close faster. Construction loans require more documentation, more experience, and more lender coordination, but they fund true ground-up projects that bridge financing cannot cover. ## New Construction Loans for Real Estate Investors ## Real estate investors and residential developers How to get a new construction loan for real estate investors ## Submit your project summary and deal details Complete Capital Partner Loans' online deal review with your project address, total build budget broken down by phase, LLC entity information, GC license and insurance, and any permits already filed or approved. ## Receive your term sheet and confirm your budget Capital Partner Loans reviews the project and matches it to the right institutional construction lender. A term sheet with rate, LTC, total loan amount, and draw schedule outline is typically issued within 24 to 48 business hours. ## Close without an appraisal and break ground No appraisal is required to close. Once documents are signed and title is cleared, the loan closes and the first construction draw is funded. You break ground immediately. ## Request milestone draws as construction progresses Submit a draw request when each construction phase is complete. The lender dispatches an inspector to verify progress. If the inspection passes, funds are released within 48 hours. ## Exit via sale or refinance at certificate of occupancy At completion, either sell the finished property and repay the construction loan from proceeds, or lease the property and refinance into a 30-year DSCR rental loan for a long-term hold with no income verification. New construction loans fund ground-up residential builds using draw-based disbursements tied to verified milestones. Capital Partner Loans requires 660+ credit, prior construction experience, and an LLC entity for new construction financing. Rates run 10.90% to 12.90% on interest-only terms; maximum LTC is 82.5% of total project cost. No appraisal is required to close, removing a major bottleneck compared to conventional construction lending. At completion, investors exit via a property sale or refinance into a 30-year DSCR rental loan for a long-term hold. ## What Is a New Construction Loan for Real Estate Investors? ## New Construction Loan Rates and Terms for Q2 2026 New Construction vs Bridge Loan vs Conventional: How They Compare ## How to Apply Through Capital Partner Loans Minimum 660 credit score. Higher than the 600 minimum for bridge loans because construction risk layers on top of borrower risk. A stronger score typically improves your rate. Prior ground-up or closely related construction experience required. Lenders need documented evidence of completed projects. Large-scale renovation experience may qualify case-by-case, but first-time builders generally do not qualify. LLC entity ownership required. All new construction loans must close in the name of an LLC or other business entity. Single-member and multi-member LLCs are both eligible. Personal guarantees may be required. Plans, budget, and permits. Architectural or engineering drawings, a fully itemized construction budget covering hard costs and soft costs, and permits that are filed or already approved. General contractor documentation. The GC must be licensed and insured. A signed contract between borrower and GC with a payment schedule tied to construction milestones is required. Residential properties only. Single-family homes, 2-4 unit multifamily, and townhome projects qualify. No commercial or mixed-use ground-up builds. ## New construction loan program terms and parameters ## Up to 82.5% of total project cost ## Up to 80% of land value at closing ## Appraisal Required to Close New construction loan vs bridge loan vs conventional construction comparison ## Existing structure (acquisition and renovation) ## Appraisal to Close ## Speed to Term Sheet A new construction loan for real estate investors is a short-term, draw-based loan that funds ground-up residential builds from lot acquisition through certificate of occupancy. Unlike a bridge loan, which finances an existing structure, a new construction loan disburses capital in stages after each milestone is inspected. Capital Partner Loans offers construction financing at 10.90% to 12.90%, up to 82.5% LTC, with no appraisal required to close. Capital Partner Loans requires a minimum 660 credit score for new construction loans. This is higher than the 600 floor for bridge loans because ground-up construction adds execution risk on top of borrower risk. A stronger credit score typically improves your rate. Investors with strong construction track records but lower scores may still be considered with compensating factors. Construction loan funds are released in stages, not as a lump sum. After closing, you submit a draw request when a construction phase is complete. The lender dispatches an inspector to verify the work. If the inspection passes, funds are released within 48 hours. Common phases include foundation, framing, rough-in trades, drywall and finishes, and final completion prior to certificate of occupancy. New construction loans from Capital Partner Loans require prior ground-up or closely related construction experience. First-time builders without a documented track record will generally not qualify. Investors with extensive large-scale renovation experience may be considered case-by-case. If you are new to building, starting with a fix and flip bridge loan is the better entry point for establishing your track record. A construction loan funds a ground-up build from raw land through certificate of occupancy, with funds released in draws as milestones are verified by inspection. A bridge loan funds the purchase and renovation of an existing structure, typically with fewer disbursement requirements and faster closings. Bridge loans are more accessible to newer investors. Construction loans are for experienced builders taking on true ground-up projects that bridge financing cannot cover.