Construction LoansBuilt for Builders

Construction loans are specialized short-term financing products designed to fund the building of new properties from the ground up. Unlike traditional mortgages that finance completed properties, construction financing provides capital in stages—called draws—as your project progresses through predetermined milestones.

How Construction Loans Differ from Traditional Financing

Traditional mortgages are structured around completed, income-producing or owner-occupied properties. Construction loans are inherently different: they finance an asset that doesn't yet exist. This requires specialized underwriting that evaluates not just the borrower's creditworthiness, but also the viability of the construction project, the builder's experience, and the projected completed value of the property.

Types of Construction Projects We Finance

• Spec Home Construction: Single-family homes built for market sale without a pre-committed buyer
• Custom Home Building: Homes built to a specific buyer's specifications on their lot
• Townhome & Infill Development: Urban and suburban attached-unit projects
• Small Multifamily: 2-4 unit residential buildings
• Large Multifamily: Apartment buildings with 5+ units
• Mixed-Use Development: Combining residential with retail or office space
• Commercial Construction: Retail centers, office buildings, and industrial properties

The Draw Schedule Process

Construction loans utilize a draw schedule—a predetermined timeline that releases funds as specific construction milestones are completed and verified. This protects both the lender and the borrower by ensuring funds are used appropriately and construction progresses according to plan.

A typical draw schedule might include: land acquisition and closing costs, site preparation and foundation, framing and structural completion, mechanical/electrical/plumbing rough-ins, interior finishing, and final completion with certificate of occupancy. Each draw request triggers an inspection to verify work completion before funds are released.

Why Developers Choose Private Construction Lenders

Traditional banks offer construction financing, but their processes are often slow, inflexible, and heavily documentation-intensive. Private construction lenders like The Leffridge Companies offer significant advantages for experienced builders and developers:

• Speed: Close in 14-21 days versus 60-90+ days with banks
• Flexibility: Creative deal structures for complex projects
• Experience-Based Underwriting: Your track record matters more than perfect credit
• Responsive Service: Direct access to decision-makers throughout the project
• Draw Efficiency: Fast draw processing to keep your project moving