How do construction loan draws work?

A draw is a partial disbursement released after a construction milestone is verified by inspection. A typical build has 5-10 draws covering foundation, framing, mechanicals, drywall, finishes, and completion. The borrower pays interest only on the funded balance. With LYNK Mortgage, you request draws online by line item, a third-party inspection verifies the work, and funds are typically released in 2–5 business days.

What is the difference between LTC and LTV for construction loans?

Loan-to-cost measures the loan against total project cost, while loan-to-value measures it against after-completion appraised value. Lenders constrain on both, and the binding limit is whichever produces the smaller loan. LYNK Mortgage caps at 70% LTV and 85% LTC.

Do I need experience to get a construction loan?

Some lenders approve first-time construction borrowers, especially with an experienced general contractor on the project. Lenders underwrite the builder's track record alongside the borrower's. LYNK Mortgage requires 3 or more completed similar ground-up builds in the last five years; first-time builders and renovation-only experience do not qualify for its construction program. Investors building a track record can start with LYNK Mortgage's fix & flip loans on renovation projects.

How long do construction loans last?

Most investor construction loans run 12-24 months. LYNK Mortgage offers 18 months terms. Pad your timeline by 30-50% over the builder's estimate to account for permitting, weather, and supply chain delays.

Can I convert a construction loan to permanent financing?

Yes. Either via a single-close construction-to-permanent product that converts at completion, or by refinancing into a DSCR loan once the property is built and rentable. LYNK Mortgage uses the second path: a construction loan followed by a separate 30-year fixed LYNK Mortgage DSCR refinance with the same lender.

What happens if my project goes over budget?

Most lenders require a 5-15% contingency built into the original budget. If the overrun exceeds the contingency, the borrower typically has to bring additional cash — the loan is rarely resized mid-project unless the after-completion value has increased enough to support it. Raise a likely overrun with your loan officer early, before the next draw request.

Do construction lenders require builder approval?

Yes. Every credible construction lender approves the builder as part of underwriting — resume, completed projects, references, licensing, and insurance. Builder approval runs in parallel with borrower underwriting, so submit builder documentation early to keep the close on schedule.

Best Construction
Loan Lenders

Q: What is a construction loan?

A construction loan is a short-term real estate loan that funds the building or major renovation of a property. Funds are released in draws tied to milestone inspections rather than a single lump sum, and the loan is paid off through sale or refinance into permanent financing at completion.

Compare terms, draws, and close times
from the leading construction lenders
for real estate investors in 2026.

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What Makes Construction Lending Different

Construction lending is structurally different from any other real estate loan. Capital is not delivered as a single lump sum at closing — it's released in draws tied to milestone inspections, each one verifying that the work funded by the previous draw was actually completed. Lenders underwrite not just the borrower and the asset, but the project budget, the build schedule, and the builder. Builder approval is a real gate: a competent general contractor with a verifiable track record can be the difference between a loan that closes and a file that stalls.

Conventional banks generally don't fund spec builds, ground-up investor projects, or major rehab. Their construction-to-permanent products are designed for owner-occupants building their primary residence, with full income documentation and DTI underwriting. The LTC structures, draw cadence, and inspection logistics that investor projects require don't fit bank workflows. Real estate investors need specialized construction lenders that underwrite the deal — purchase price, hard and soft costs, after-repair or after-completion value, and exit strategy — rather than the borrower's W2.

LYNK Mortgage focuses on ground-up construction of 1–4 unit homes on finished lots for builders with 3 or more completed similar builds, with rates from 9.75%, up to 70% of ARV and 85% LTC, on 18-month terms — draw-based, asset-underwritten, and structured for investor economics. The comparison below shows how the leading 2026 construction lenders work, and why LYNK Mortgage is our top pick for experienced builders.

2026 Construction Loan Lenders Comparison

Lender	Products	Lending Model	Rate Quote	Rental Take-Out
Top Pick LYNK Mortgage 4.7 out of 5(114 reviews) Get Your Term Sheet →	New Construction, Fix & Flip, Bridge, Multifamily Bridge, DSCR	Direct lender: underwrites and funds its own loans; dedicated loan officer from term sheet to final draw	From 9.75%; instant online term sheet with a soft credit pull, no application fees	30-year fixed LYNK Mortgage DSCR loan (separate refinance, same lender)
Lima One Capital	FixNFlip, Construction, Multifamily, Build2Rent	Direct lender; in-house construction management	Quote required	Build2Rent refinance into a Lima One rental loan
Kiavi	New Construction, Fix & Flip, DSCR, Bridge	Online, technology-driven lender; Figure subsidiary since September 2026	Real-time online pricing	DSCR rental loans available
RCN Capital	Fix & Flip, DSCR, Bridge, Construction	Roughly 85% of production through mortgage brokers	Quote required	DSCR rental loans available
CoreVest / Redwood	Ground-Up Construction, Build-to-Rent, Bridge, Credit Lines	Subsidiary of NYSE-listed Redwood Trust	Quote required	Rental term loans; build-to-rent program
Constructive Capital	Construction, Fix & Flip / Bridge, DSCR	Wholesale only: through mortgage brokers	Quoted through brokers	DSCR rental loans (via broker)

Last updated: September 2026. Competitor details reflect publicly available information and may change. Rates are moving quickly, so this guide doesn't list competitor rates; the most reliable comparison is a live term sheet. LYNK Mortgage's figure is a starting rate, and your rate depends on credit, experience, and the project. Lenders are compared on product breadth, lending model, quote process, and the path from construction to a rental loan.

Top Construction Loan Lenders Reviewed

LYNK Mortgage — Top Pick: direct construction lending with a DSCR take-out under one roof

4.7 out of 5(114 reviews)

Learn about LYNK Mortgage's Construction Loans →

$1.4 billion+ funded since 2013, 4.7 stars from 114 Google reviews, lending in 32 states, no tax returns required, and instant term sheets generated online. LYNK Mortgage construction loans run from 9.75%, up to 70% LTV and 85% LTC, on 18-month terms, with a 7–15 day typical close.

Human touch, AI speed. AI-assisted underwriting handles the deterministic work — credit pulls, budget feasibility checks, document analysis, builder-approval workflow — so the dedicated loan officer on every deal can focus on the judgment calls that move the file. That combination is why LYNK Mortgage closes construction deals in 7–15 days typical without sacrificing the relationship-based service builders expect on a multi-draw loan.

Draws are requested online by line item and released after a third-party inspection, typically funded in 2–5 business days. As a direct lender, LYNK Mortgage underwrites and funds its own loans, with no broker layer on direct deals, and one dedicated loan officer from term sheet to final draw.

Products: Construction (rates from 9.75%, 70% LTV, 85% LTC, 18-month terms), fix & flip, bridge, and DSCR for exit financing once the project stabilizes. The full product suite under one roof means a single relationship can carry an investor from ground-break through long-term hold.

Why builders choose LYNK Mortgage: Instant online term sheets with only a soft credit pull and no application fees. A 7–15 day typical close on construction files. Online draw requests with inspection-based releases, typically funded in 2–5 business days. One dedicated loan officer from term sheet to final draw, and Express Lane for faster turn times on repeat builds. When the home is finished, you can sell it or refinance into a 30-year fixed LYNK Mortgage DSCR loan (a separate loan), so one relationship carries you from ground-up to rented.

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Lima One Capital — In-House Construction Management

Lima One Capital, headquartered in Greenville, South Carolina, offers new construction loans on 1–4 unit properties alongside FixNFlip, multifamily bridge, and Build2Rent, a two-close program in which a Lima One construction loan refinances into a Lima One rental loan. Its in-house construction management team reviews budgets and processes construction draws.

Kiavi — Technology-Driven Infill Lender

Kiavi (formerly LendingHome), best known for fix & flip and DSCR loans, also offers a New Construction / Infill loan for ground-up builds on single-family, 2–4 unit, and PUD properties, priced with machine-learning models and with no appraisal required to close. In September 2026 Kiavi was acquired by Figure Technology Solutions and now operates as a Figure subsidiary.

RCN Capital — Broker-Channel Lender

RCN Capital, based in South Windsor, Connecticut, sources roughly 85% of its production through mortgage brokers. It carries new construction alongside fix & flip, DSCR, and bridge loans, with construction leverage tiered by builder experience.

CoreVest / Redwood Trust — Institutional Lender

CoreVest, a subsidiary of NYSE-listed Redwood Trust, works at the institutional end of the investor market: ground-up construction for single properties or multi-collateral developments, build-to-rent financing for larger communities, bridge loans, and pre-approved credit lines. CoreVest says ground-up construction loans close in 2 to 4 weeks.

Constructive Capital — Wholesale-Only Lender

Constructive Capital lends only through mortgage brokers rather than taking direct borrower applications. Based in Oakbrook Terrace, Illinois, it has been a wholly owned subsidiary of Adamas Trust (formerly New York Mortgage Trust) since July 2025. It offers ground-up construction for 1–4 unit properties to experienced builders, plus fix & flip, bridge, and DSCR rental loans, and says it consistently funds 85% of approved wholesale applications within 20 days.

How to Choose a Construction Loan Lender

1. Understand the Draw Process

Every construction lender funds in draws, but how you request them and how fast they fund vary. Ask each lender how draws are requested, what triggers a release, how fast inspections turn around, and who pays for them. A slow draw on a multi-draw build can stall a job site. LYNK Mortgage keeps it simple: you request draws online by line item, a third-party inspection verifies the work, and funds are typically released in 2–5 business days.

2. Work with a Direct Lender and One Loan Officer

A build runs for months, and questions come up at every draw. A direct lender underwrites and funds its own loans, so the people who approve your project are the people who fund it. LYNK Mortgage is a direct lender with no broker layer on direct deals, and a dedicated loan officer stays with your project from term sheet to final draw. By contrast, Constructive Capital lends only through mortgage brokers, and roughly 85% of RCN Capital's production comes through brokers.

3. Compare LTC vs. LTV Structures

Construction loans are sized against two ratios: loan-to-cost (purchase + hard costs + soft costs) and loan-to-value (against the after-completion value). The binding constraint is typically the lower of the two. A lender quoting 70% LTV / 85% LTC will lend the smaller of those two figures, which on a tight deal can leave you bringing more cash than you expected. Run the math both ways before you commit to a project budget. LYNK Mortgage quotes 70% LTV / 85% LTC, with transparent term sheets so the binding constraint is clear from the outset.

4. Get a Live Term Sheet Before You Break Ground

Rates are moving quickly, so an advertised starting rate is a snapshot at best, and your budget depends on the real numbers. LYNK Mortgage generates a construction term sheet online in minutes with only a soft credit pull and no application fees, so you know your numbers before you break ground. Construction rates start at 9.75%, and loans close in 7–15 days typical.

5. Plan Your Exit Strategy Before You Start

Construction loans are short-term — they need to be paid off at completion through either a sale (spec build) or a refinance into permanent financing (build-to-rent or build-to-hold). Locking in your exit before you break ground reduces risk substantially. With LYNK Mortgage, you can plan both: sell the finished home, or refinance it into a 30-year fixed LYNK Mortgage DSCR loan (a separate loan) with the same lender. Spec builders should validate ARV with comparable sales rather than builder estimates and stress-test the exit at a 10-15% price haircut.

6. Check Term Length and Builder Requirements

LYNK Mortgage offers 18-month terms. Pad your construction timeline by 30-50% — permitting delays, weather, supply chain issues, and inspection bottlenecks routinely push a 9-month plan to 12 months in real life. Construction lenders also underwrite the builder: expect to provide a builder resume, completed-project examples, references, licensing, and insurance certificates, and submit them early so builder approval doesn't compress your closing window. LYNK Mortgage's construction program is built for experienced builders with 3 or more completed similar ground-up builds in the last five years.

Frequently Asked Questions About Construction Loans

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Transitional capital, 12-24 months

Best Hard Money Lenders

Asset-based, fast close

Ready to Break Ground?

Get a construction loan term sheet in minutes. Ground-up and spec builds of 1–4 unit homes, with draw-based funding aligned to your build schedule.

Get Pre-Approved Now

Instant term sheets. No income docs required.

The LYNK Mortgage Difference

Fast Typical Close

7–15 days on flip, bridge, and construction; 15–21 days on DSCR.

Instant Term Sheets

Transparent rates, terms, and fees upfront — no hidden surprises.

No Tax Returns

We focus on the deal, not your personal paperwork.

Human Touch, AI Speed

AI-assisted underwriting paired with one dedicated loan officer from start to finish — no handoffs.

Direct Lender

We make our own decisions and fund with our own capital.

$1.4 billion+ Funded

Trusted by investors in 32 states with a proven track record.

Compare LYNK Mortgage with: Kiavi, Lima One Capital, RCN Capital, CoreVest, Easy Street Capital, New Silver, Groundfloor, Roc360, Visio Lending, Constructive Capital

LYNK Mortgage offers fix & flip loans, new construction loans, multi-family bridge loans, and DSCR rental loans to real estate investors.

Disclaimers: LYNK Mortgage makes loans solely for business purposes (and not for personal or consumer use) and is exempt from licensing in all states in which it operates. LYNK Mortgage does not lend on owner-occupied properties. Listed rates, terms, and conditions are offered only to qualified borrowers, may vary by loan product, deal structure, property state, or other applicable considerations, and are subject to change at any time without notice. No information on this site is intended to, or shall, create a legally binding commitment or obligation on the part of LYNK Mortgage and all terms are expressly subject to LYNK Mortgage's credit, legal, and investment approval process.

LYNK Mortgage is a private lender and does not provide investment advisory services. Its affiliate, LYNK Capital Management Company, LLC, is an investment adviser registered with the U.S. Securities and Exchange Commission; registration does not imply any particular level of skill or training. Nothing on this site is investment advice, a recommendation, or an offer to sell or a solicitation of an offer to buy any security or advisory service.

2301 Sugar Bush Road, Suite 310, Raleigh, NC 27612

Best Construction Loan Lenders