California · Ground-Up Construction
California spec build construction loans.
Financing for spec houses and small residential buildings up to nine units. Up to 85% of cost, interest only on drawn funds, draws released against inspected work, $1M to $5M.
By David Hodara · ·
85% LTC
Max leverage
$1M-$5M
Loan range
24-48h
Term sheet
On inspection
Draws
California ground-up construction market context
A California spec build is an entitlement project with a house at the end of it. The vertical cost is the predictable part; the return depends on how long the jurisdiction takes, what design review asks for, and whether the lot carries a hillside, coastal or historic overlay. We lend up to 85% of cost once permits are issued, and write the term to the realistic schedule.
The loan is also checked against the finished value, and on a build where value is close to cost, that check sets the amount. The exit is usually a sale; a hold is possible where the rent supports a DSCR refinance at up to 80% LTV, which at California prices is the exception.
Non-US sponsors build in California on the same terms as US sponsors, through a US LLC, underwritten on the budget, the contractor and the exit.
Typical loan products for California ground-up construction
Each deal gets routed to the product structure that fits. Most ground-up construction deals in California use one of the following.
Construction loans
Ground-up financing for spec houses, small residential buildings and build-to-rent, up to 85% of cost, interest only on the drawn balance, draws against inspected work.
Bridge loans
Lot or land acquisition while permits and horizontal work are finished, ahead of the first construction draw.
DSCR loans
The hold or the exit: long-term financing qualified on the property's rent rather than personal income, up to 80% LTV.
Buying California ground-up construction from outside the US
We finance ground-up construction in California for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
California ground-up construction FAQ
Is 85% loan to cost available on a Los Angeles spec build?
Yes, on cost, with equity going in first and draws following inspected work. The practical limit is often the value check rather than the cost check.
Do you lend on a spec build before permits are issued?
Not as a construction loan. A bridge can carry the lot through entitlement at lower leverage, converting to construction once permits are in hand.
What does the financing cost upfront?
Nothing. There are no upfront fees. Our fee is 1 to 2% of the loan, paid at closing, and the rate is set on the term sheet by leverage, the business plan and the sponsor's completed projects.
Can a foreign national finance ground-up construction in California?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents borrows on the same terms a US investor receives. You do not have to travel to the United States to close.
Other California asset classes
Got a California ground-up construction deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose investment property financing only.