--- title: "Ground-Up Construction Loans: What Your Lender Needs to See" description: Plans, permits, budgets, and builder experience. Here is the full list of what a lender needs to fund a ground-up construction loan. --- ![](https://referralprogram.pkcapital.com/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logoipsum.svg) - [PRODUCT](https://referralprogram.pkcapital.com/product) - [PRICING](https://referralprogram.pkcapital.com/pricing) - [RESOURCES](https://referralprogram.pkcapital.com/resources) - [BLOG](https://referralprogram.pkcapital.com/blog) - [ABOUT](https://referralprogram.pkcapital.com/about) SIGN IN GET A DEMO # Ground-Up Construction Loans: What Your Lender Needs to See Plans, permits, budgets, and builder experience. Here is the full list of what a lender needs to fund a ground-up construction loan. [Christian Groomes](https://referralprogram.pkcapital.com/pk-capital-solutions-llc-blog/author/christian-groomes) Sep 30, 2026 --- Ground-up construction is where investors can create the most value, and where lenders ask the most questions. There is no existing structure to fall back on. The loan is secured by land and a plan until the building is finished. That means your package has to show we can trust the plan, the budget, and the people building it. Here is what we need to see, and why. ## The land - **Ownership or contract.** Whether you already own the lot or are buying it with the loan. - **Land equity.** If you own the land free and clear, its value can count toward your equity in the project, reducing the cash you need to bring. - **Zoning and utilities.** Confirmation the lot is zoned for what you plan to build, with access to water, sewer or septic, and power. - **Survey.** Especially for lots with easements, setbacks, or flood zone questions. ## The plans and permits - **Plans and specifications.** Full construction drawings, with engineering where required. - **Permits.** Issued permits, or a clear timeline to get them. At PK, we can close before permits are issued, but they must be in hand before the first construction draw. ## The budget A ground-up budget needs more detail than a rehab budget. Break it into stages: - Site work and foundation - Framing and roofing (dry-in) - Mechanical, electrical, and plumbing rough-ins - Insulation and drywall - Interior finishes, cabinets, and fixtures - Exterior finishes, driveway, and landscaping - Soft costs: permits, impact fees, engineering, builder's risk insurance, utility connections - Contingency This breakdown becomes your draw schedule, so the more it matches how the job will actually be built, the smoother your funding will be. ## The builder - **Experience.** Completed projects of similar size and type, with addresses and photos. - **License and insurance.** Current general contractor license and liability coverage. - **Contract.** A signed construction contract with the GC, including price and schedule. If you are the builder, we will look at your own construction history. If you are hiring a GC, their track record matters as much as yours. ## The value and the exit - **As-complete value.** The appraiser estimates what the finished home will be worth, based on comparable new construction sales. - **Leverage.** Ground-up loans are typically sized on a percentage of total cost and a percentage of as-complete value, with the lower number winning. At PK, ground-up loans can fund up to 100% of construction costs. - **Exit.** A sale to an end buyer, or a refinance into a DSCR loan if you are building to rent. ## Liquidity for the unexpected Construction almost never goes exactly to plan. Weather, inspections, material lead times, and change orders all add time. We look for enough liquidity to cover your equity, carrying costs, and a cushion for overruns. Some loans include an interest reserve so payments are covered during the build. ## How the build is funded Construction funds are released in draws tied to your staged budget. After each stage, an inspector confirms the work and the matching funds are released. Plan to pay for the first stage yourself, and build your schedule around inspection timing. A budget that matches how the house is actually built makes every draw faster. ## Why a builder-led lender helps PK was built by people who build. Our partner Greg Huegel oversees construction and co-owns a building company, and our team reviews every ground-up budget and schedule the way a builder would. We know what a realistic framing timeline looks like, what impact fees run in our markets, and where budgets usually come up short. ## Planning a build? If you have a lot and a plan, send us what you have. Even if permits are not in hand yet, we can review the budget and tell you what the loan would look like. ## Similar posts ### Get notified on new marketing insights Be the first to know about new B2B SaaS Marketing insights to build or refine your marketing function with the tools and knowledge of today’s industry. ![](https://referralprogram.pkcapital.com/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logo-White.svg) Company 1234 5th AVE N. 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