Ground-Up Development Loans
Ground-up development loans finance new construction from dirt to completion: land acquisition or payoff, horizontal site work, and vertical construction, released through draws. These are experience-driven loans where the sponsor's track record, the budget's credibility, and the market's demand carry the underwriting.
Best uses
- Building spec homes or small subdivisions
- Build-to-rent projects
- Infill construction on acquired lots
- Small commercial and mixed-use development
Typical borrower profile
- Builders and developers with completed projects
- Investors partnering with experienced builders
- Operators expanding from heavy rehab into new builds
Potential qualification factors
Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:
- Sponsor development track record
- Approved plans, permits, and entitlements
- Budget quality with contingency
- Land equity or cash contribution
- Market absorption and completed value support
Documentation to have ready
- Government-issued ID
- Entity documents (LLC or corporation)
- Purchase contract or payoff statement
- Property details and photos
- Insurance quote or declarations page
- Full plans, specs, and permits
- Line-item development budget with contingency
- Sponsor track record and financial statement
- Feasibility or comparable sales support
Benefits
- Finances land and construction in one facility
- Draw-based funding matches spend to progress
- Experience unlocks stronger leverage over time
Common challenges to plan for
- Entitlement and permitting delays cost real money
- Higher complexity than any other product on this site
- Market shifts during long build cycles affect exit values
Frequently asked questions
Can the loan cover land purchase?
Many programs fund a portion of land cost or pay off a land loan at closing, with the balance as your equity in the deal.
Do I need permits before applying?
You can start conversations earlier, but funding generally requires permits in hand or a clear, dated path to them.
What experience do lenders want?
Completed projects of similar scope. Newer developers can strengthen a file with an experienced builder, partner, or smaller first project.
How is interest handled during construction?
Interest typically accrues on drawn balances, and many budgets include an interest reserve so the project carries itself during the build.
How funding works with Bluejacket
Submit Your Request
Two minutes online with basic details about your goal.
Speak With a Funding Advisor
We review your situation and gather what lenders need.
Review Your Options
Compare structures side by side and pick what fits.
Receive Funding
Complete the lender's process and put capital to work.
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Submit a short request and a funding advisor will follow up with options matched to your situation.