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Construction Loans for Investors, Builders, and Developers
Construction financing for investors, builders and developers, placed with private investors and specialty construction lenders.
- Ground-up and heavy rehab
- Draw-funded, interest-only
- 12–24 month terms
On select programs, subject to lender approval. Not all applicants will qualify.
Blue Fox Capital lends on select ground-up construction and heavy rehabilitation programs for real estate investors, builders, and developers. These are business-purpose loans, and projects outside our own programs we place through a network of private investors and specialty construction lenders.
Loan Highlights
- Loan Purpose: Ground-up construction, heavy rehabilitation, and completion financing on stalled projects
- Property Types: Single-family and 1–4 unit residential investment, multifamily, mixed-use, and select commercial
- Structure: Interest-only during construction, funded by draw against completed work
- Leverage: Advance rates on land, hard costs, and total project cost vary by market, sponsor experience, and lender
- Term: Typically 12–24 months, with extension options on select programs
- Exit: Sale, or refinance into permanent or DSCR financing at certificate of occupancy
- Availability: Business-purpose and commercial financing available nationwide through our lender network, subject to lender approval.
How Construction Draws Work
Construction money is not handed over at closing. The lender funds the land or acquisition piece up front, then reimburses hard costs in stages as work is completed and inspected. You or your general contractor submit a draw request, an inspector verifies the work in place, and funds are released against that verified progress.
This is where inexperienced sponsors get into trouble. If your contractor expects to be paid before work is done, you need working capital to bridge the gap between spend and reimbursement. We will tell you what that gap looks like before you close, not after.
What Lenders Underwrite
- The sponsor. Completed projects of comparable scope carry more weight than anything else in the file
- The budget. Line-item hard and soft costs, with a contingency the lender considers realistic
- The general contractor. License, insurance, bonding where required, and track record
- Entitlements and permits. Shovel-ready files price and close materially better than pre-entitlement land
- The exit. Supported as-completed value, or a rent roll that services permanent debt
- Liquidity. Cash to cover draw timing, cost overruns, and carry through completion
Common Scenarios We Finance
- Ground-up single-family or small-lot infill in an established market
- Small multifamily and townhome development
- Tear-down and rebuild on an acquired lot
- Heavy rehab where the scope exceeds what a standard fix-and-flip lender will fund
- Completion financing on a project a prior lender walked away from
- ADU and multi-unit additions on investment property
What Slows a Construction File Down
Being honest about this saves everyone time. Permits not yet issued, a budget with no contingency, a contractor without a license or adequate insurance, no comparable completed projects, or a plan that depends on an as-completed value the appraiser will not support. Any one of those turns a two-week approval into a two-month conversation. Bring them up front and we will structure around them or tell you to fix them first.
How It Works
- Scenario review. Send the address, the budget, the plans, and your track record. We will tell you quickly whether it is financeable and roughly where.
- Term sheet. Structure, leverage, term, and draw mechanics in writing.
- Diligence. Appraisal with as-completed value, budget and plan review, contractor vetting, and title.
- Close and fund. Initial advance at closing, then draws against inspected progress.
- Exit. We line up the permanent or DSCR refinance before you need it, not after.
Construction Loan FAQ
Can I get a construction loan as a first-time builder?
It is harder and it costs more, but it is possible with a strong licensed general contractor, a conservative budget, real liquidity, and a straightforward project. A first-time sponsor attempting a complex build is where lenders say no.
Do you finance the land purchase too?
Often yes, on a shovel-ready parcel. Raw, unentitled land is a different and much more limited financing conversation.
How fast can a construction loan close?
Faster than a bank, slower than a bridge loan. The variable is usually how complete your budget, plans, and permits are when you come to us.
What happens if I go over budget?
You cover it, or you renegotiate with the lender from a weak position. This is why lenders require contingency and verify your liquidity before closing.
Are these consumer loans?
No. These are business-purpose loans on investment and commercial property. If you are building or renovating your own primary residence, that is a consumer transaction and a different conversation — see our Home Loans page.
Get a Construction Loan Quote
Send us the project and a loan advisor will respond within one business day.
Related Programs
Construction loans described on this page are business-purpose loans secured by investment or commercial real estate and are not consumer credit transactions. Blue Fox Capital Corporation lends on select DSCR, fix-and-flip and construction programs and arranges other financing as a mortgage broker through private investors and third-party lenders. Programs, terms and availability vary by loan and are subject to approval. CA DRE 01527288 | NMLS 1840487. Daniel Eckhouse, NMLS 217328 | CA DRE 01977403. Leverage, terms, draw structures, and availability vary by market, property type, sponsor experience, and lender guidelines, and are subject to change without notice. All financing is subject to underwriting review, appraisal, and lender approval. Approval is not guaranteed. Not all applicants will qualify. Equal Housing Opportunity.