Florida New Construction Loans - Ground Up Development Financing
Get comprehensive construction financing in Florida for ground-up development projects. Our experienced construction lending team provides funding for builders, developers, and investors throughout the development process.
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New Construction Loan Program Details
Loan Structure and Terms
- Loan Amounts: $200,000 to $10,000,000+
- Loan-to-Cost: Up to 80% of total project cost
- Construction Phase: 12-18 months interest-only
- Interest Rate: Competitive rates for construction phase
- Conversion Options: Construction-to-permanent available
- Draw Schedule: Milestone-based funding releases
Project Types We Finance
- Single-Family Spec Homes: Custom and production builds
- Small Multifamily: Duplexes, triplexes, and small apartment buildings
- Mixed-Use Projects: Residential/commercial combinations
- Townhome Developments: Small-scale residential projects
- Renovation/Addition Projects: Major reconstruction and additions
Construction Draw Schedule
Typical construction draw schedule includes:
- Land/Foundation Draw (15%): Site preparation and foundation
- Framing Draw (25%): Structural framing completion
- Roof/Mechanical Draw (25%): Roof and rough-in utilities
- Drywall/Interior Draw (20%): Interior finishes and fixtures
- Final Draw (15%): Completion and certificate of occupancy
Required Documentation
Project Documentation:
- Complete architectural plans and specifications
- Detailed cost breakdown and construction budget
- Licensed general contractor agreement
- Development timeline and schedule
- Site surveys and engineering reports
- Building permits and approvals
Borrower/Builder Requirements:
- Construction experience and completed project examples
- Personal financial statements and credit information
- Proof of down payment and liquidity
- General contractor licenses and insurance
- Subcontractor agreements and bids
Florida Construction Considerations
Weather and Seasonal Factors
- Hurricane Season: June-November construction planning
- Rainy Season: Summer months can delay exterior work
- Material Delivery: Weather-related shipping delays
- Insurance Requirements: Builder's risk and wind coverage
Regulatory Environment
- Building Codes: Florida Building Code requirements
- Wind Resistance: Hurricane impact standards
- Flood Zones: FEMA requirements and elevation certificates
- Environmental: Wetlands and conservation area restrictions
Market Dynamics
- Seasonal Demand: Winter buyer activity peaks
- Tourism Impact: Vacation rental potential in some markets
- Growth Markets: Rapid population growth areas
- Material Costs: Hurricane-related material price volatility
Construction-to-Permanent Loans
Our construction-to-permanent loans provide a seamless transition from construction financing to long-term permanent financing:
- Single Closing: One loan application and closing
- Rate Lock Options: Lock permanent rate during construction
- Automatic Conversion: No re-qualification required
- Cost Savings: Avoid multiple closings and origination fees
Success Tips for Construction Projects
- Detailed Planning: Comprehensive plans reduce change orders
- Experienced Team: Work with proven contractors and subcontractors
- Budget Contingency: Include 10-15% contingency for unexpected costs
- Timeline Buffer: Allow extra time for weather and permit delays
- Quality Control: Regular inspections ensure quality standards
- Market Timing: Plan completion for optimal selling season
Construction Loan FAQs
What is a new construction loan?
A new construction loan provides financing for ground-up development projects. These loans typically have an initial construction phase with interest-only payments, followed by conversion to permanent financing upon completion.
How do construction draws work?
Construction funds are released in scheduled draws based on completion milestones. Typical draw schedule includes foundation, framing, roof, mechanical rough-in, drywall, and final completion stages.
What loan-to-cost ratio can I get?
We can lend up to 80% of the total project cost for qualified builders and developers. The loan-to-cost includes both land acquisition and construction costs.
Do you require construction experience?
While construction experience is preferred, we work with first-time builders who have strong financial profiles and work with experienced general contractors.
Can I act as my own general contractor?
Owner-builder arrangements are possible for experienced developers. However, we may require additional oversight and documentation for projects with owner-builders.
Florida Construction Markets
Start Your Florida Construction Project
Get the construction financing you need to bring your development vision to life. Our experienced team is here to guide you through every step.
Not a commitment to lend. Terms subject to underwriting, market conditions, and borrower experience. All loans subject to credit approval and property evaluation.
Rates and terms vary based on loan type, property type, borrower experience, and market conditions. Contact us for current rates and terms specific to your deal.
This information is for real estate investors and is not intended for owner-occupied properties. Investment properties only.