Construction financing
Construction Loans for Real Estate Investors
Financing for ground-up residential construction once the foundation is in, covering up to 100% of hard costs, with draws wired the same day you send photos of completed work.
Eligibility
Both conditions must be met before closing.Land owned free and clear
No outstanding liens or mortgages on the land. Wisdom Capital does not finance land acquisition.
Foundation poured and set
The foundation must be in place before closing. Pre-foundation stages are not financed.
Reimbursed at closing
At closing, Wisdom Capital can reimburse a portion of your land cost and the full cost of the foundation, applied to closing costs or advanced at the table.
Construction terms
Wisdom Capital program guidelines. Subject to underwriting and final approval.| Loan amount | $100,000 – $3,000,000 |
|---|---|
| Property | 1–14 unit residential |
| Construction coverage | Up to 100% of hard costs |
| Rate | 10.99% for qualified investors |
| Structure | 1-year, interest-only; 3-month minimum, then month-to-month up to 12 months |
| Draws | Photo or video of completed work, same-day wire. No receipts, no on-site inspections |
| Borrower | LLC or corporation |
What construction underwriting looks at
- Plans and approvals. Architectural plans, zoning compliance, and permit status or a realistic path to permits.
- The budget. A detailed hard- and soft-cost budget, ideally with a contractor bid, and a contingency line.
- The builder. The general contractor's license, insurance and completed projects of similar scope.
- The land and foundation. Wisdom Capital requires the land owned free and clear and the foundation poured before closing.
- The completed value. What the finished property should sell or appraise for, supported by comparable new construction.
- The timeline. Construction schedule plus time to sell or refinance, with room for inspection and weather delays.
How construction draws work
You submit your scope of work at closing. As you complete each phase, commonly framing, rough mechanicals, close-in and finishes, you send Wisdom Capital photos or videos of the finished work, and draw funds can be wired the same day. There are no receipts to collect and no on-site inspections to schedule. Because draws follow completed work, the builder still needs working capital to start each phase.
Local approvals in the tri-state area
New construction in New York, New Jersey and Connecticut runs through municipal zoning and building departments, and approval timelines vary widely from town to town. In New York City, work is permitted through the Department of Buildings. Build approval time into your schedule and your interest budget, and confirm requirements with your architect and attorney for the specific municipality.
Construction loan FAQ
Can Wisdom Capital finance the land purchase?
No. For ground-up construction, the land must already be owned free and clear and the foundation poured before closing. At closing, a portion of your land cost and the full foundation cost can be reimbursed.
Can the land be part of my equity?
Yes, in effect. Wisdom Capital can reimburse a portion of your land cost and the full cost of the foundation at closing, and apply those funds to closing costs or advance them at the table.
Is a construction loan different from a rehab loan?
They work similarly, with draws against a budget. Construction loans involve larger budgets, plans and permits, and longer timelines, so underwriting focuses more on the builder and approvals. For lighter renovations, see acquisition + rehab financing.
Next step
Have a Project in Planning?
Share the site, plans, budget and builder, and let’s review how the construction financing could be structured.
Helpful to include
- Site address and confirmation the land is owned free and clear
- Foundation status (poured and set)
- Plans, permit status and construction budget
- Your builder and their completed projects
- Estimated completed value and target timeline