A ground-up construction loan is used to finance the entire construction process of a new property—from land acquisition to the final build. Unlike renovation loans, these loans support projects starting from the foundation and structure up.

Approval for these loans focuses on the project’s feasibility, builder’s experience, budget, timeline, and projected property value upon completion. Because the project itself serves as the primary collateral, hard money lenders can fund deals that conventional banks may decline due to timeline complexity or borrower qualifications.