Loan Programs · Core Focus
Ground-Up Construction Loans for Investors
Financing for investors and builders creating new housing—spec homes, infill projects, and build-to-rent communities. Private and hard money construction loans are arranged through our lender network for projects in Minneapolis–St. Paul, across Minnesota, and nationwide.
Building What Lasts
From Plans to Completion
Construction lenders underwrite the project, the budget, the builder, and the exit. A complete, credible package is what moves a construction loan forward.
Lenders look at your land position, approved plans and permits, a detailed budget and schedule, contractor credentials, and either projected sale values or stabilized rents. They size the loan against total project cost and the projected completed value, with limits that vary by lender, experience, and market.
Expect lenders to look closely at three things beyond the budget itself: your equity contribution and how land is credited, the contingency set aside for overruns, and how interest will be carried during the build—sometimes through an interest reserve, sometimes from your own liquidity. A licensed, experienced general contractor and a realistic schedule strengthen every one of those conversations. Construction loans are typically short-term, hard money–style loans, so the exit—sale or refinance—needs to be clear from the start.
Spec Home & Infill Construction Loans
For homes built to sell, lenders focus on the completed value, the absorption of comparable new homes, and your track record building similar product. Infill lots often bring extra diligence on zoning, utilities, setbacks, and neighborhood comparables. A realistic sales price—supported by real comps, not hopeful ones—is the foundation of a strong spec file.
Build-to-Rent (BTR) Financing
For build-to-rent operators, we think about the whole capital stack from day one: construction financing now, and a long-term rental or portfolio exit once units are leased. Lenders will want a rent schedule supported by market data, an operating budget, and a clear plan for lease-up.
What to prepare
- Land ownership or purchase contract
- Plans, specifications, and permit status
- Line-item construction budget and timeline
- Builder or general contractor resume and license
- Projected sale values or rent schedule
- Your construction and rental experience
- Liquidity for equity, contingency, and interest carry
The Exit
Construction-to-DSCR Exit
Many investors building rentals plan to refinance out of the construction loan into a long-term DSCR loan once the property is complete and leased. The DSCR lender will qualify the finished property on its lease or market rent, taxes, and insurance—so those numbers deserve attention while you’re still in design. Planning the takeout early helps avoid a gap between completion and a qualifying lease.
Land & Horizontal Development (Case by Case)
Land acquisition and horizontal development (A&D)—roads, utilities, and lot improvements—is a narrower market. We consider these scenarios case by case and will tell you early whether we see a path.
Draws
How Draws & Budgets Are Reviewed
Construction funds are released in draws as milestones are completed. Before closing, the lender or a third-party reviewer typically examines the budget line by line against the plans; during construction, an inspector verifies progress before each draw. Expect to fund your equity first, keep a contingency, and plan for interest carry during the build.
The most common construction-loan problems are budgets missing soft costs, contingencies that are too thin, and schedules that ignore permitting or weather. We help you tighten all three before the file goes out.
Minnesota
Construction Loans for Minnesota Builders & Investors
Cornerstone Capital is based in Minneapolis and arranges construction loans for investors and builders in the Twin Cities, across Minnesota, and nationwide. Minnesota projects bring their own planning questions: winter construction schedules, frost-related foundation work, and permitting that varies widely between Minneapolis, St. Paul, and suburban and greater-Minnesota municipalities. Lenders want to see that the schedule and budget reflect those realities.
FAQ
Construction Loan Questions
Do you finance owner-builders building their own home?
No. Our construction financing is for business-purpose investment projects only—homes built for sale or for rent. We do not arrange owner-occupied construction loans.
Can land equity count toward my contribution?
Some lenders give credit for land you already own; others require cash contribution regardless. How your land is treated is one of the first things we clarify.
Do I need construction experience?
Most construction lenders want to see experience from the sponsor, the builder, or both. Newer investors can sometimes strengthen a file with an experienced, licensed general contractor and additional liquidity.
Can I refinance into a DSCR loan when construction is complete?
Often, yes, once the property is complete and leased or ready to lease. DSCR lenders set their own seasoning and valuation rules, so we plan the takeout alongside the construction loan.
Do you arrange construction loans in Minnesota?
Yes. We’re based in Minneapolis and arrange construction loans for investors and builders in Minneapolis–St. Paul, across Minnesota, and nationwide, subject to each lender’s footprint and applicable requirements.
Are there upfront fees?
Not from Cornerstone Capital on this brokered loan. We charge no upfront broker fees and are paid only at closing. Transactional funding has separate fees disclosed in writing. Lender and third-party costs, such as budget reviews, appraisals, and inspections, are separate.
Free Download
The Investor’s Funding Checklist
What to have ready before you request a business-purpose loan, by program, plus a deal summary worksheet and the red flags that slow closings.
Related Programs & Guides
Planning a Build?
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