New Construction Loans in Virginia for Real Estate Investors

Construction loans are funded in stages through a draw schedule. Funds are released as construction milestones are completed, and the loan is typically repaid or refinanced after the project is finished.

New construction loans may cover land acquisition, building materials, labor costs, permits, and other expenses related to constructing a property.

Funds are disbursed in phases, known as draws, based on completed construction work and inspections at each stage of the project.

A draw schedule is a pre-approved plan that outlines when funds will be released during the construction process, typically tied to project milestones.

Some construction loan programs allow for land acquisition to be included as part of the total loan, depending on the project and lender guidelines.

Many construction loans offer interest-only payments during the build phase, helping investors manage cash flow until the project is completed.

Credit requirements vary by lender, but construction loans are typically available to borrowers with moderate to strong credit profiles.  We have lenders who can do construction loans with a 620 score or higher, it may depend on experience and strength of the project.

While prior experience can improve approval chances and loan terms, some programs allow newer investors or builders to qualify depending on the strength of the project.

After construction is complete, the loan is typically repaid through the sale of the property or refinanced into a long-term loan, such as a rental property loan.

Construction loans are usually short-term, often lasting 6 to 18 months, depending on the scope and timeline of the project.

Yes, many investors refinance construction loans into long-term financing options after the project is completed and stabilized.