Financing New Construction With Hard Money

Bridge, Rental and Build

The short version, then the substance.

Why builders use it. Construction lending at banks is slow, covenant-heavy, and allergic to small builders. Asset-based construction money funds the lot and the vertical on a draw schedule, and moves at the speed the trades actually work.

The structure. Land acquisition rolls into the construction facility, draws release at stages, and the exit is the sale of the finished product or a refinance on completion. Twelve months covers most single-family builds with room to breathe.

What gets a build funded. A realistic budget from a builder who has finished things, a lot basis that leaves room, and end-value comps for the finished product. New construction rewards the disciplined and punishes the optimistic, and the budget is where you can tell which one is applying.

The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.