How are construction funds disbursed?

Construction funds are typically released in stages through draw schedules based on completed work.

Can I refinance after construction is complete?

Yes. Many investors refinance into long-term rental financing once construction is completed.

What types of projects qualify?

Eligible projects include single-family homes and small multifamily properties, typically up to four units.

Does Grafton Funding offer DSCR loans for rental properties?

Yes — DSCR (Debt Service Coverage Ratio) loans are our most popular product. We lend on single-family rentals, 2–4 unit properties, short-term rentals (like Airbnb and VRBO), and small multifamily up to 10 units. We qualify the property on its rental income rather than your personal income or tax returns. Minimum DSCR is typically 1.0x, and we lend in TX, FL, GA, NC, SC, and other states.

Does Grafton Funding do fix and flip loans or bridge loans?

Yes. We provide fix and flip loans and bridge loans for non-owner occupied investment properties. Our programs cover the purchase price plus rehab costs, with fast closings. Loan terms are short-term (typically 12–18 months) and are designed around the investor's exit strategy — either sale or refinance.

Can I get a DSCR loan for an Airbnb or short-term rental property?

Yes — we specialize in short-term rental (STR) financing. We use either the property's actual Airbnb or VRBO income history or a market-rate STR income estimate to qualify the loan. You don't need W-2s or tax returns.

Does Grafton Funding offer new construction loans for investment properties?

Yes. We offer new construction loans for non-owner occupied residential investment properties, including spec builds, ground-up construction, and lot + build projects. These are short-term loans that fund in draws as construction progresses.

Does Grafton Funding lend in North Carolina?

Yes — we actively lend in North Carolina, including the Charlotte metro, the Triangle (Raleigh/Durham/Chapel Hill), Wilmington, and Asheville. We offer DSCR rental loans, fix and flip loans, and new construction financing for NC investment properties. Local NC line: (910) 218-1286.

Can I qualify for a loan without showing tax returns or personal income?

Yes — our DSCR loans are underwritten based on the property's rental income, not your personal income or tax returns. This makes them ideal for self-employed investors and business owners. We do require a credit check and down payment, but there's no traditional income verification.

What credit score do I need to get a loan from Grafton Funding?

For most DSCR rental loan programs, we generally look for a minimum credit score in the 660–680 range, though this can vary by program and loan-to-value. Fix and flip loans may have different requirements depending on experience and deal strength.

How much do I need to put down for a DSCR loan?

For DSCR rental loans, we typically lend up to 75–80% loan-to-value (LTV), meaning you'd need 20–25% as a down payment. The exact LTV depends on the property type, DSCR ratio, and your credit profile. We lend exclusively on non-owner occupied investment real estate.

How quickly can Grafton Funding close a loan?

Many of our transactions close in 2–4 weeks depending on the loan type, property, and how quickly documentation is provided. We prioritize responsive communication and efficient underwriting for investors who need to move fast on deals.

Does Grafton Funding work with first-time real estate investors?

Yes — we work with both new and experienced investors. For DSCR rental loans, first-time investors are welcome as long as the property cash flows and the borrower meets our credit and down payment requirements. For fix and flip loans, some experience is preferred but not always required.

New Construction Loans for Real Estate Investors | Ground-Up Financing Nationwide

Q: What is a new construction loan?

A new construction loan provides financing to build residential or small multifamily investment properties from the ground up.

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New Construction Loans
for Real Estate Investors

Ground-up construction financing designed for real estate investors building new residential and small multifamily properties nationwide.

Flexible loan structures. Asset-based underwriting. Financing designed for experienced builders and real estate investors.

What Is a New Construction Loan?

A new construction loan provides financing for investors building residential or small multifamily properties from the ground up.

We provide new construction financing in growth markets across the United States.

Unlike traditional mortgages, construction loans are structured to fund both the land acquisition (if applicable) and vertical construction costs through staged draws as the project progresses.

These loans are ideal for investors building:

Spec homes
Build-to-rent properties
Investment duplexes and triplexes
Small multifamily projects (up to 4 units)

Our ground-up construction loans are designed specifically for real estate investors building residential and small multifamily properties.

Our team works with experienced builders and investors nationwide to structure construction financing aligned with project timelines and budgets.

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How Construction
Financing Works

New construction loans are typically structured with:

Short-term loan terms (12–24 months)
Interest-only payments during construction
Draw schedules based on completed phases
Funding based on projected after-completion value

Funds are released in stages as construction milestones are completed and inspected.

After completion, many investors refinance into our DSCR rental loan programs for stabilized cash-flow properties.

Qualification Overview

While guidelines vary by program, new construction financing for investors typically includes:

Loan-to-cost or loan-to-value structures
Credit score minimums typically 640+
Construction budget review and approval
Licensed contractor preferred but not always required
Experience required
Financing for 1–4 unit residential properties

Minimum loan amounts and property values may vary by program.

Who New Construction Loans Are Designed For

Our construction financing solutions are ideal for:

Real estate developers
Spec home builders
Build-to-rent investors
Small multifamily developers
Investors expanding into new markets

If you are acquiring distressed properties instead of building from the ground up, explore our fix and flip bridge financing programs.

New Construction Loan FAQs

What is a new construction loan?
A construction loan provides staged financing for ground-up residential or small multifamily development projects.

How long are construction loans?
Most programs range from 12–24 months depending on project scope.

Do you fund construction draws?
Yes, funds are released in phases based on completed construction milestones.

Can I refinance after completion?
Yes, many investors refinance into long-term rental loan programs after project stabilization.

Do you finance land acquisition?
Yes, many programs allow financing of land acquisition as part of a ground-up construction loan, depending on experience and project structure.

Do you lend nationwide?
Yes, new construction financing is available across most U.S. states.

From initial loan pricing and application
to final loan closing and funding, we’re here for you

Get Started

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Build-to-Rent

Construction Financing

Build-to-rent has become one of the fastest-growing investment strategies nationwide.

New construction loans allow investors to:

Develop rental inventory
Scale long-term rental portfolios
Control property specifications
Optimize rental demand in growth markets

Upon completion, many investors transition into long-term rental financing solutions structured around property cash flow.

New Construction Loans for Real Estate Investors