Lender · Alexandria, VA · Member since 2014 · 13 posts · 3 votes
Hey all,
I’m looking ideas for finding a direct lender to fund a ground-up, non-owner-occupied SFR project. My client has strong FICO & liquidity, but the challenge is transitioning from fix & flip to new construction—no prior ground-up experience.
Any recommendations on lenders who work with first-time builders in this situation? Appreciate any insights!
I’m looking ideas for finding a direct lender to fund a ground-up, non-owner-occupied SFR project. My client has strong FICO & liquidity, but the challenge is transitioning from fix & flip to new construction—no prior ground-up experience.
Any recommendations on lenders who work with first-time builders in this situation? Appreciate any insights!
Hey @Mike Douglas, welcome to the BP Forum! Most HMLs have become more picky with new construction developers needing experience. I suggest partnering with an existing builder to gain the experience.
I’m looking ideas for finding a direct lender to fund a ground-up, non-owner-occupied SFR project. My client has strong FICO & liquidity, but the challenge is transitioning from fix & flip to new construction—no prior ground-up experience.
Any recommendations on lenders who work with first-time builders in this situation? Appreciate any insights!
Hi Mike,
I’ve helped borrowers get approved for their first ground-up construction projects before. Since your client has strong credit and liquidity, they’re already halfway there!
The key now is: An experienced contractor with a solid track record and a well-prepared Scope of Work.
Permits in hand—many lenders won’t seriously consider the deal until permits are pulled.
Lenders have become more strict about not reviewing ground-up loans until the project is shovel-ready since so many deals fall apart during the permitting stage.
If you’d like any guidance on structuring the deal or finding a lender who works with first-time builders, feel free to reach out—I’d be happy to help!
Don't hesitate reach out to me if you need some help with this.
That transition from F&F to GUC is a tricky one, but there are a few programs that can help you with that as long as you have some extra reserves/liquidity and are working with a good builder.
Are you looking around Virginia or are you working somewhere else?
Mike - I was a builder for 20 years before becoming a full time lender almost 6 years ago. We love new construction and can assist you with this project! will need to have a qualified, licensed GC to build the house.
Thank you all for your responses—I truly appreciate the insight! I'll be gathering additional details from my client, and once I have more information, I may reach out to explore how we can work together to assist my client. Looking forward to staying in touch!
I’m looking ideas for finding a direct lender to fund a ground-up, non-owner-occupied SFR project. My client has strong FICO & liquidity, but the challenge is transitioning from fix & flip to new construction—no prior ground-up experience.
Any recommendations on lenders who work with first-time builders in this situation? Appreciate any insights!
I’m looking ideas for finding a direct lender to fund a ground-up, non-owner-occupied SFR project. My client has strong FICO & liquidity, but the challenge is transitioning from fix & flip to new construction—no prior ground-up experience.
Any recommendations on lenders who work with first-time builders in this situation? Appreciate any insights!
MIke Im sure you found a great lendere here , I still wanted to add value. For a client with strong credit and cash but no build history, the fix is usually on the GC side: a licensed, experienced general contractor with a fixed-price contract, a detailed budget, and a draw schedule. Many ground-up lenders will accept the GC's track record in lieu of the borrower's, often at slightly lower leverage (e.g., 80–95% of cost). Permits in hand helps a lot.