Submit Scope of Work (SOW)
The borrower sends the SOW through the portal, showing which line items are complete.
New Construction Loans for Investors & Builders
Ground-up residential construction loan financing from $50,000, up to 90% LTC. Draw-schedule funding released as milestones hit. No income verification. Pre-approval in 24–48 hours so your project starts on schedule, not when a bank gets around to it.
$50K+
Loan Amount
12mo
Loan Term
24-48hrs
Pre-Approval
46
States
Construction Loan At A Glance
Loan Amount $50K - $5M+
Eligible Properties 1-4 Unit SFR
Funding Method Up to 90%
Income Verification None Required
Prepayment Penalty None
What Is a Construction Loan?
A construction loan is short-term financing that funds the ground-up building of a property, disbursed in stages ("draws") as milestones like foundation, framing, and finish work are completed, rather than as one lump sum. InstaLend's real estate construction loans are asset-based, so approval is based on the project's loan-to-cost ratio, not personal income.
WHY INSTALEND
Why Builders and Investors Choose InstaLend for Construction Loans
Construction financing is more complex than a standard mortgage and most lenders treat it that way. InstaLend is built differently: asset-based underwriting, fast pre-approvals, and a draw process designed around how construction actually works on the ground.
InstaLend is ranked #727 on the 2024 Inc. 5000 and #99 on the Financial Times' 2025 Americas' Fastest-Growing Companies list, independent recognition of the scale behind every construction loan we fund.
24-48h
Pre-Approval Speed
Get pre-approved within 24-48 hours of submitting your project details, before you finalise land acquisition or contractor agreements.
Zero
Income Docs Required
No W-2s, no tax returns, no employment history. Approval is based on the project's loan-to-cost ratio and borrower experience, not your pay stub.
Draw
Milestone-Based Funding
Funds released in staged draws as construction milestones are hit: foundation, framing, mechanical, finish work. You only pay interest on what you've drawn.
None
No Prepayment Penalty
Sell or refinance early without fees. If the project completes ahead of schedule, you're not penalised for paying off the loan before the 12-month term ends.
RATES & TERMS
New Construction Loan Terms at a Glance
InstaLend's construction loan financing is structured around the project, not the borrower's personal financials. Here's exactly what to expect before you submit your first draw request.
LOAN PARAMETER
INSTALEND NEW CONSTRUCTION LOAN
Loan Amount
$50,000 - $5M+
Loan Term
12 Months (extensions available)
Eligible Properties
1-4 Unit Single-Family Residential
Funding Method
Max LTC Up to 90%
Interest Payments
Interest-only on drawn amount
Income Verification
None Required
Qualification Basis
Loan-to-Cost (LTC) ratio + experience
Borrower Requirement
Licensed GC or prior construction experience
Prepayment Penalty
None
Pre-Approval Time
24-48 Hours
Exit Options
Sell or refinance into long-term mortgage
States
46 States
CONSTRUCTION FINANCING TERMS
Construction Loan Financing Options: Which Structure Fits Your Project?
Ground-Up Hard Money
Construction-to-Perm
Conventional / Bank
Ground-Up Hard Money Construction Loan
Hard money real estate construction loans are short-term, asset-based loans designed for real estate investors and builders who need fast approvals, flexible draw schedules, and no income documentation requirements.
The lender evaluates the project based on loan-to-cost (LTC) ratio and the borrower's construction experience, not personal W-2s or tax returns.
HARD MONEY CONSTRUCTION KEY TERMS
Qualifying basis LTC + experience
Income verification None required
Loan term 12 months
Funding Max LTC Up to 90%
Construction-to-Permanent Loan (Single-Close)
A construction-to-permanent loan, also called a single-close loan, bundles the construction phase and long-term mortgage into one financing package.
You apply once, close once, and pay one set of closing costs. When construction is complete, the loan automatically converts to a 15 or 30-year permanent mortgage.
This structure is most common for owner-occupants building their primary home and for investors who plan to hold the property long-term.
BEST FOR
W-2 employees or borrowers with straightforward income documentation who plan to hold the completed property.
W-2 employees or borrowers with straightforward income documentation who plan to hold the completed property.
CONSTRUCTION-TO-PERM KEY TERMS
Qualifying basis Personal income (DTI)
Income verification W-2 + tax returns
Loan structure Construction → 30yr mortgage
Closings One closing only
Interest rate Lower (long-term)
Approval time 4–8 weeks
Stand-Alone Construction Loan (Conventional / Bank)
A stand-alone construction loan funds the build phase, after which you must apply separately for a permanent mortgage.
This "two-close" structure requires paying closing costs twice.
BEST FOR
First-time homebuilders with W-2 income.
First-time homebuilders with W-2 income.
CONVENTIONAL BANK KEY TERMS
Qualifying basis Personal income (DTI)
Income verification W-2 + tax returns
Min. down payment 5–20%
Approval time 4–8+ weeks
Closings Two (construction + perm)
Investor use Limited / complex
HOW FUNDING WORKS
How Draw Requests Work
Unlike a traditional mortgage where funds are disbursed upfront, InstaLend releases construction loan funds in staged draws as your project hits specific milestones. You only pay interest on the amount drawn at any point, keeping your carrying costs low throughout the build.
01
02
Select Inspection Type
Choose to do a self-inspection or have InstaLend order a third-party inspection.
03
Confirm Wire Details
Receive a DocuSign for the first draw to confirm your wire details securely.
04
Same-Day Fund Release
Funds are released the same day inspection is received, based on completion percentage.
COMMON STRATEGIES
How Builders and Investors Use New Construction Loans
Ground-up construction financing is flexible enough to support several investment and development strategies. Here's how InstaLend's borrowers structure their projects.
Spec Home Building
Build on speculation in a supply-constrained market, then sell at completion for a premium over comparable renovated resales. Milestone draws keep carrying costs low.
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Build-to-Rent
Build new construction to hold as a long-term rental. Use InstaLend's construction loan for the build, then transition into our SFR rental loan at completion.
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Custom Home Building for Clients
Licensed builders constructing a pre-sold or custom home for an end buyer. Draw funding matches disbursements to progress.
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Infill Development
Build on vacant or teardown lots in established neighborhoods where land is scarce but demand is strong. No income verification required.
Teardown and Rebuild
Demolish an outdated structure and build new on the same lot. Financing covers up to 90% of total project cost, acquisition and build combined.
Portfolio Expansion for Builders
Builders managing multiple projects at once can use InstaLend across several sites simultaneously, with no cap on active loans.
How to Qualify
Builder Credentials
Licensed contractors or experienced builders with a proven construction track record.
Project Plans
Submit property details, construction plans, budget, and timeline.
LTC Analysis
Asset-based approval focused on project costs and value not your income.
Property Location
Available in 46 states for 1–4 unit residential construction projects.
No Income Verification
No W-2s, tax returns, employment history, or personal income documentation required.
WHO IT'S BUILT FOR
Who InstaLend's New Construction Loans Are Built For
InstaLend's construction loan financing is designed for builders, developers, and investors, not first-time primary residence buyers. Here's who qualifies and benefits most.
01
Licensed General Contractors and Home Builders
InstaLend requires borrowers to hold a GC licence or demonstrate prior construction experience. If you're a builder who builds and sells, our construction loan financing is purpose-built for your business model: fast approvals, flexible draws, no income docs.
02
Real Estate Investors New Construction for Profit
Experienced investors using new construction as an exit strategy: build in a supply-constrained market, sell at a premium above renovation comps. InstaLend's construction loans for investors require no income verification and no property limit cap.
03
Build-to-Rent Developers
Investors building new construction specifically to hold as long-term rentals. Use InstaLend's construction loan for the build phase, then seamlessly transition into our SFR rental loan at completion. Both products under one lender relationship.
04
Self-Employed Investors and Business Owners
Traditional construction lenders penalise complex income structures. InstaLend evaluates your project on its own merits: LTC ratio, builder experience, and project viability. No W-2s, no tax returns needed regardless of how your income is structured.
05
Out-of-State Builders and Remote Developers
InstaLend lends in 46 states and our digital application process means you don't need to be local to close. Fund construction projects in Georgia, Michigan, North Carolina, and Massachusetts from anywhere in the country.
06
Investors Needing Pre-Approval Before Land Acquisition
Get pre-approved for your residential construction loan within 24–48 hours, before you finalise the land purchase or sign contractor agreements. Pre-approval confirms your loan eligibility and gives you confidence to bid on lots and secure the right builder without financing uncertainty.
SIMPLE PROCESS
How to Apply for a New Construction Loan with InstaLend
01
Submit Your Project Details
Share your lot location, planned build scope, estimated total budget (land + construction), and your builder credentials. No financial documents at this stage.
02
We Evaluate LTC and Project Viability
InstaLend reviews the project's loan-to-cost ratio and your construction experience. No W-2s. No tax returns. The project qualifies, you don't have to.
03
Close and Begin Drawing Funds by Milestone
Receive your term sheet, finalise paperwork, and close. Funds are released on your milestone-based draw schedule from day one of construction.
WHERE WE LEND
Real Estate Investor Loans Across the USA
InstaLend lends in 46 states - invest in the markets with the strongest returns, not just the ones close to a bank branch.
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FREQUENTLY ASKED QUESTIONS
Construction Loan Financing FAQs
Everything builders and investors ask before breaking ground. Answered directly.
What is a new construction loan?
A new construction loan is a short-term financing product used to fund the ground-up building of a residential property, from the initial land purchase through final inspection. Unlike a traditional mortgage, funds are disbursed in stages (draws) as construction milestones are completed, rather than as a lump sum upfront.
Do I need income verification for InstaLend's construction loan?
No. InstaLend's new construction loans are asset-based. Approval is based on the project's loan-to-cost ratio and the borrower's construction experience, not personal W-2s or tax returns. Self-employed builders and investors with complex income structures qualify on the same terms as W-2 earners.
What is a ground-up construction loan?
A ground-up construction loan finances the building of a new structure from scratch, through foundation, framing, mechanical systems, and all the way to a finished, certificate-of-occupancy-ready property. InstaLend specialises in ground-up construction loans for real estate investors and home builders.
What experience do I need to qualify?
InstaLend requires borrowers to be licensed General Contractors or to have demonstrated prior experience with new construction projects. This ensures the build is managed professionally and the project timeline is realistic. InstaLend reviews your build history as part of the application.
Can first-time investors qualify for new construction loans?
Yes. Experience helps, but new investors can qualify by partnering with licensed contractors or bringing strong project plans and detailed budgets to support the application.
What is the difference between a construction loan and a regular mortgage?
A regular mortgage funds a finished, existing property. A construction loan funds the building process, releasing money in draws as work progresses, with interest-only payments on drawn amounts during construction. Once the build is complete, investors either sell or refinance into a long-term mortgage.
How do draw requests work?
The borrower submits a Scope of Work through InstaLend's draw request portal showing which line items are complete, then selects either a self-inspection or a third-party inspection. The borrower also receives a DocuSign for the first draw on every new loan to confirm wire details. Funds are released the same day the inspection is received, based on the project's percentage of completion multiplied by the holdback, minus amounts already released in prior draws. Each wire release carries a $30 wire fee and a $270 inspection fee, deducted from that draw's total.
Can I get pre-approval for a construction loan before buying land?
Yes. InstaLend offers pre-approval for construction loans within 24–48 hours of submitting your project details. Pre-approval confirms your loan eligibility before you finalise land acquisition or contractor agreements, giving you the confidence to bid on lots and negotiate with builders.
Which states does InstaLend offer construction loans in?
InstaLend offers new construction loans in 46 states across the USA. We do not currently lend in North Dakota, South Dakota, Arizona, California, or Utah. Top construction markets include Georgia, Florida, North Carolina, Michigan, Massachusetts, New Jersey, Indiana, and Pennsylvania.
READY TO BREAK GROUND?
New Construction Financing That Moves at Build Speed
Pre-approval in 24–48 hours. No income verification. Milestone-based draw schedule. InstaLend has funded construction projects across 46 states, from spec home builds to multi-unit infill developments.