New Construction Loans for California Builders and Investors

Ground-up construction takes more than a good plan. You need financing that covers the build, releases money as work progresses and doesn’t stall while a bank takes months to decide. Private construction lenders are built for exactly that.

Seth Swenson Mortgage Capital arranges ground-up construction loans from $500,000 to $15 million, with up to 100% of construction costs financed and draws released as each phase is completed.

Talk to Seth: (415) 860-7384

Loan Terms at a Glance

Rates and terms are subject to change and depend on the project, borrower and lender approval. Loans are for business purposes and investment properties only.

How It Works

1. Send Seth the project

Share the site address, your plans, the construction budget, your general contractor and the expected value of the finished property. Seth will tell you quickly whether it pencils out and which lenders fit.

2. Close on the loan

If you already own the land, its equity can count toward your down payment. If you’re buying the lot, the acquisition can be financed as part of the project.

3. Build with draw funding

As each phase of construction is completed, you request a draw. The lender inspects the work and releases funds to pay your contractor. You only pay interest on the money that has been drawn, so payments stay low early in the build.

4. Sell or refinance

When construction is finished, sell the property and pay off the loan, or refinance into long-term financing such as a DSCR rental loan or multifamily loan if you plan to hold it.

Example: How the Numbers Work

Say you own a lot worth $800,000 and plan a build with a $2,000,000 construction budget. Once finished, the property is expected to be worth $3,400,000.

• Total project cost (land plus construction): $2,800,000
• Construction loan: $2,000,000, covering 100% of the build
• Loan-to-cost: about 71%, within the 85% limit
• Loan-to-completed-value: about 59%, within the 75% limit

Your $800,000 in land equity covers your share of the project, so you may not need additional cash for the construction itself.

Figures are illustrative only. Actual loan amounts depend on the appraisal, budget review and lender approval.

Estimate your numbers with our Loan Calculator →

Experience Requirements

Lenders want to know the project is in capable hands. You’ll qualify in one of two ways:

• Your own track record: documented prior construction projects that you have completed
• A qualified partner: working with, or partnered with, a general contractor who has documented construction experience

First-time developers can still qualify by teaming with an experienced general contractor.

Who This Loan Is For

• Builders and developers with a track record of completed projects
• Landowners who want to build using the equity in their lot
• Investors partnering with an experienced general contractor on a first project
• Developers who need faster, more flexible funding than a bank construction loan

Why Work with Seth Swenson Mortgage Capital

Seth has worked in private money lending since 2003, including more than 25 years living and working in the San Francisco Bay Area. As a licensed California broker with access to over 50 private lenders, he matches each project with a lender whose draw process, terms and experience requirements fit how you build.

Frequently Asked Questions

Do I need to own the land already?

No. You can use land you already own, and its equity can count toward your down payment. If you’re buying the lot, the purchase can be financed as part of the construction project.

Do I need building experience?

You’ll need either documented prior construction projects of your own, or a general contractor partner with documented construction experience.

Do permits need to be issued before closing?

Ideally, yes. Some lenders will close when permits are expected to be issued in the near term, so talk to Seth about where your project stands.

How are construction funds released?

In draws. As each stage of work is completed, the lender inspects the progress and releases the next portion of funds.

How do payments work during construction?

Payments are interest-only on the principal balance. As funds are drawn, they’re added to the balance, so your payments start small and grow as the project progresses.

What kinds of projects do you finance?

Single-family spec homes, 2–4 unit properties and larger multifamily buildings with 5 or more units.

What if I’m renovating instead of building new?

For renovations of existing homes, see our Fix and Flip Loans. For apartment buildings, see Multifamily Loans.

Ready to Start Your Build?

Call Seth at (415) 860-7384 or send a message with the site address, construction budget, expected completed value and your general contractor’s details. He’ll tell you quickly whether the project fits.