Investor financing

Ground-up construction loans

For investors building a rental or spec property from the ground up, not remodeling a house they live in.

Construction programs for investment properties review the project, the builder, and the exit as much as the borrower.

Outside Virginia, Rockhouse Mortgage arranges business-purpose loans on non-owner-occupied investment property only.

How it works

A ground-up construction loan funds the build according to a budget, plans, and inspection draws. Interest is typically charged on funds as they are disbursed.

The exit may be a sale, a refinance into a DSCR or other rental loan, or another take-out. Construction-to-permanent structures exist on some programs; others are construction-only.

Rockhouse Mortgage compares investor construction programs. Owner-occupied one-time-close construction is a different product and is covered on our Virginia home-loan construction page.

What lenders look at

Plans, budget, and builder experience
Land, permits, and project feasibility
Borrower or sponsor experience with similar builds
Credit, reserves, and contingency
The planned exit after completion

Eligible properties

Investment properties being built to rent or sell
Projects that will not be the borrower’s primary residence or second home

Case study

One-Time-Close Construction in Loudoun County, VA

A construction file that closed in a single structure. Investor ground-up programs can differ from owner-occupied one-time-close loans.

Read the case study →

Want help comparing programs?

Rockhouse Mortgage compares wholesale lender programs for the scenario in front of us. Start with a call or an online application.

Schedule a Call Apply Online

Frequently asked questions

Is this the same as a one-time-close construction loan for a home I will live in?

No. Owner-occupied construction and renovation loans are a separate Virginia home-loan product. This page is for business-purpose investment construction.

Do you finance the land and the build together?

Some programs can include land and construction in one facility. Others expect the land to be owned. It depends on the lender and the project.

How are funds released?

Construction loans typically use inspection-based draws as work is completed. Exact draw schedules vary by program.

What happens when the house is finished?

You may sell, refinance into a DSCR or other take-out loan, or use a construction-to-permanent structure if the program offers one.

Review a build before you break ground

Share the plans, budget, and whether this is a rental or a spec sale. We can compare investor construction structures.