Construction Loans That Get Projects Built

Fast, flexible financing for builders, developers, and real estate investors.

What Is a Construction Loan?

A construction loan is short-term financing that provides capital for building or major renovation projects. Unlike permanent loans, construction loans are designed to fund materials, labor, and other costs during the build phase.

These loans are typically interest-only during construction, with repayment structured around project completion or refinancing. Terms usually range from 12–36 months, giving builders time to complete projects, lease-up, or sell.

At Nelson Funding, we structure construction loans for spec home builders, developers, and investors across the U.S. Our network of private lenders, institutional partners, and alternative capital sources allows us to fund projects banks often decline.

Why Choose a Construction Loan?

Ground-Up Builds
Secure capital to develop new residential, commercial, or mixed-use projects.
Spec Home Construction
Finance multiple home builds, even without presales or takeout commitments.
Major Renovations
Fund large-scale property improvements that add value and reposition assets.
Land + Build Financing
Acquire land and roll construction costs into one flexible package.
Bridge to Permanent Financing
Use a construction loan to complete the project, then refinance into long-term debt.

Key Benefits of Nelson Funding’s Construction Loans

Loan Sizes: $1M to $50M+
Terms: 12–36 months, often interest-only
Advance Structures: Draw schedules and renovation reserves available
Leverage: Up to 85% LTC (loan-to-cost), 75% LTV (loan-to-value)
Eligible Projects: Spec homes, subdivisions, multifamily developments, commercial buildings, mixed-use projects
Nationwide Coverage: Builders and developers across the U.S.

Construction Loan Variations

Every project is different, which is why Nelson Funding structures a wide range of construction loans:

[Private Money Lenders for Homebuilders →] —fast, flexible capital from private lenders.
[Spec Home Construction Financing →] — tailored funding for homebuilders building inventory.
[Hard Money Loans for Builders →] — asset-based financing for tough projects.
[Real Estate Development Loans →] — financing for subdivisions, mixed-use, and commercial projects.
[Builder Financing Programs →] — customized capital stacks for builders of all sizes.
[Private Funding for Real Estate Development →] — creative capital sources for non-traditional projects.
[Homebuilder Loan Providers →] — options for builders across residential and light commercial sectors.

We also arrange bridge loans for industrial, retail, and other real estate assets through our nationwide lending network.

How Construction Loans Work

1. Application & Approval

Nelson Funding reviews the project, pro forma, and borrower experience. We match the deal to the right lender.

2. Funding Structure

Loans are typically structured with draw schedules. Borrowers draw funds as the project progresses.

3. Interest-Only Period

During construction, borrowers make interest-only payments, reducing cash outflow while the property is being built.

4. Exit Strategy

Once the project is complete, borrowers refinance into permanent financing, sell the property, or repay the loan with proceeds.

Construction Loans vs. Other Financing Options

vs. Bank Construction Loans

Banks require extensive documentation, presales, and strict covenants.

Nelson Funding’s construction loans move faster and are more flexible.

vs. Bridge Loans

Bridge loans fund acquisitions or transitional assets.

Construction loans fund building and renovation from the ground up.

vs. Hard Money

Hard money is usually faster and more expensive, used for high-risk scenarios.

Construction loans are structured specifically for building, often with better leverage.

Example Scenario

Borrower Profile

Regional homebuilder in Texas

Project

12-unit spec home subdivision in a high-growth market

Challenge

No presales and bank financing required 30% cash equity. The builder needed higher leverage and a fast close to break ground.

Solution

Nelson Funding arranged an $8M construction loan with 80% LTC and a 24-month term. Funds were disbursed through a draw schedule, allowing the builder to start immediately. Once homes were built and sold, proceeds paid off the loan in full.

This deal illustrates Nelson Funding’s ability to structure flexible capital solutions that banks wouldn’t approve.

Why Work With Nelson Funding

Builders and developers across the U.S. choose Nelson Funding because we:

Understand Construction —from spec homes to multifamily developments.
Close Quickly — as little as 2–3 weeks for many projects.
Offer Flexibility — private, institutional, and alternative capital sources.
Provide High Leverage — up to 85% LTC, 75% LTV.
Deliver Results — $100M+ in loans closed across multiple sectors.

“We fund the projects banks won’t — and we do it faster.”

FAQs Bridge Loans

How much equity do I need for a construction loan?

Typically 15–25%, though Nelson Funding structures higher leverage depending on the deal.

How long does it take to get approved?

We can often approve and close within 2–3 weeks, compared to months with banks.

Can I roll land acquisition into the loan?

Yes. Many construction loans include both land purchase and build costs.

Do I need presales or takeout commitments?

Not always. Many private lenders will finance projects without presales, especially in strong markets.

What happens after construction is complete?

Most borrowers refinance into permanent financing or pay off the loan with sales proceeds.

Ready to Build? We’ll Help You Break Ground.

Whether you’re a spec homebuilder, multifamily developer, or commercial investor, Nelson Funding structures construction loans that make projects possible. Fast approvals, flexible terms, and nationwide coverage.