What is the max LTC for Utah construction loans?

Up to 90% loan-to-cost on combined land + hard construction costs, depending on builder experience, project complexity, and exit strategy.

Do I need building experience to qualify?

Yes. Construction loans require demonstrated experience - typically completed builds documented through prior projects, or a qualified GC under contract.

How are construction draws handled?

Draws are released against verified milestones (foundation, framing, dry-in, etc.) following inspection. Each draw is reimbursement-based - you fund the work, then we release funds.

Ground Up Construction Loans Utah | 90% LTC

Q: What is a ground-up construction loan?

A ground-up construction loan finances a new build from raw or improved land through certificate of occupancy. Funds are released in draws as construction milestones are completed and verified by inspection.

What Is a Ground-Up Construction Loan?

A ground-up construction loan finances a new building from undeveloped or improved land through certificate of occupancy. Unlike a fix-and-flip rehab loan, it covers vertical construction - foundation, framing, MEP, exterior, and interior finish. Funds are released in draws tied to verified construction milestones, so capital deploys as the project actually progresses rather than all upfront.

For Utah builders, this is the financing structure that makes new SFR, build-to-rent, and small-subdivision development feasible without tying up an entire equity position in land and hard costs from day one.

Utah Construction Program

Criteria	Details
Loan Amount	$150K - $3M
Max LTC	Up to 90% (land + hard costs)
Term	12-24 months
Funding Structure	Initial advance + draws against milestones
Builder Experience	Required (or qualified GC under contract)
Min Credit Score	680+
Land Status	Owned, under contract, or being acquired with the loan
Exit Strategy	Sale or refinance to long-term hold

How Draws Work

Construction funds are not released all at once. The hard-cost budget is held back and disbursed as work is completed and verified through inspection. A typical SFR draw schedule looks like this:

Draw 1 - Foundation

Excavation, footings, foundation poured.

Draw 2 - Framing

Walls, floors, roof framing complete.

Draw 3 - Dry-In

Roofed, sheathed, windows installed; rough MEP started.

Draw 4 - Interior Finish

Drywall, flooring, cabinetry, MEP complete.

Final Draw - Certificate of Occupancy

Final inspection, CO issued, project ready for sale or refinance into long-term debt.

Draw schedules are tailored to your project's scope of work, GC contract, and timeline.

Qualifying Utah Projects

Single-family infill builds in Salt Lake City, West Valley, Sandy, Murray, Holladay
Build-to-rent SFR communities in Lehi, Eagle Mountain, Saratoga Springs, Herriman
Small subdivisions (2-10 lots) in Davis, Utah, and Washington counties
Custom homes in Park City and surrounding Wasatch Back markets
Multi-family builds (5-9 units) in qualifying MSAs
St. George and Washington County new construction

Construction Loan FAQ

Can I include the land purchase in the loan?

Yes. We can fund land acquisition + vertical construction in a single facility, subject to the combined LTC cap.

How fast can a construction loan close?

Typically 3+ weeks once the file is ready for underwriting. Construction files take longer than rehab loans because of plans, permits, GC vetting, and budget review.

What about take-out / exit financing?

Most builders exit by sale at certificate of occupancy. If you're keeping the property as a rental, refinance into a 30-year DSCR rental loan at completion.

Do you fund spec builds vs. pre-sold?

Both. Spec builds carry slightly more conservative leverage. Pre-sold or pre-leased projects with documented end-buyer/tenant get higher LTC.

Ground-Up Construction Loans in Utah