Ground-Up Construction Loans in California
Land plus 100% of the construction budget for California builders putting up new homes, with up to six months of interest built into the loan.
Anatoliy KanevskyFounder · NMLS #2775380Land plus 100% of the construction budget for California builders putting up new homes, with up to six months of interest built into the loan.
Anatoliy KanevskyFounder · NMLS #2775380A ground-up construction loan is a short-term, interest-only loan that finances the land (or a teardown) and the full construction budget to build new homes. The land portion is funded at closing, construction money is released in draws as each stage is inspected, and the loan is repaid when the homes are sold or refinanced.
Up to 75% of the land price plus 100% of the construction budget, limited to 85% of the total project cost (90% when interest is financed) and 70% of the completed value. The loan is the lowest of those three numbers:
| Example build | Amount |
|---|---|
| Land price (permits approved) | $350,000 |
| Construction budget | $450,000 |
| Total project cost | $800,000 |
| Completed value (ARV) | $1,200,000 |
| 75% of the land + 100% of construction | $262,500 + $450,000 = $712,500 |
| Total-cost cap: 85% of $800,000 | $680,000 |
| ARV cap: 70% of $1,200,000 | $840,000 |
| Maximum loan (the lowest of the three) | $680,000 |
| Funded at closing for the land | $230,000 (the cap trims the land advance) |
| Released in draws for construction | $450,000 |
| Your cash at closing | $120,000 + closing costs and one month of interest reserve |
Illustration only; your terms depend on experience and the project.
Builders with completed ground-up projects. Leverage is the same at every experience level; experience changes the return the finished project must show and where you can build.
| Completed ground-up projects | Leverage | Exit test | Building in a new market |
|---|---|---|---|
| 1–2 | 75% of land / 100% of construction / 85% of cost | Projected ROI of at least 20% | Not available |
| 3–4 | Same | Projected ROI of at least 10% | With a GC contract and 5% less leverage |
| 5+ | Same | Projected ROI of at least 10% | With a GC contract and 5% less leverage |
Same person from the first call to the payoff.
I come from luxury residential development, so I read a build the way a builder does: whether the budget matches the plans, how long permits and construction will really take, what the finished homes will sell for and how much cash you need until they do.
Send me the lot, where the permits stand, the budget and the completed value, and I’ll size the loan before you pay for an appraisal.
Send the lot, the plans or permit status, the budget and the completed value. You’ll get the loan sized before you pay for an appraisal.
Anatoliy Kanevsky reviews investor deals himself. Direct line 310-686-5053
Business-purpose loans only. The programs on this page finance non-owner-occupied investment property purchased or refinanced by an LLC or corporation. They are not available for personal, family or household purposes or for a home you live in. Owners typically sign a personal guarantee. Loans are made or arranged by West Coast Capital Mortgage (NMLS #2817729, CA DRE Corporation License #02440065) and funded by our private lender. Figures are program maximums under current program guidelines as of November 5, 2026. Actual leverage, loan amount, rate, term and eligibility depend on experience, credit, liquidity, the property, the market and underwriting. Some markets receive lower leverage or are not eligible, and programs change without notice. Nothing on this page is an offer of credit, a rate quote or a commitment to lend.