Ground-Up Construction
Capital from the ground up.
Development requires more than financing. The land, budget, plans, permits, builder experience, schedule, completed value, and exit strategy all influence how the transaction should be capitalized.
East Towne Capital works with qualified developers, builders, and investors seeking capital for new residential construction.
What We Evaluate
The transaction, not just the request
East Towne Capital looks beyond the surface to understand how the financing fits the overall transaction.
- Land and lot basis
- Construction budget
- Plans and permits
- Builder experience
- Project schedule
- Completed value
- Exit strategy
Qualification
Minimum Credit Score
Minimum Credit Score: 680+ (FICO)
Minimum credit score is one qualification factor. Additional underwriting requirements apply. Meeting the minimum credit score does not guarantee approval, terms, or funding.
Indicative Financing Parameters
Parameters structured around the transaction
Shown to illustrate the range East Towne Capital evaluates. Actual structure depends on the transaction, borrower, property, market, and current program availability.
Loan Amount
Core programs may begin around $50,000 and extend to approximately $3,000,000+, with larger projects evaluated separately.
Property Types
Single-Family, 2–4 Unit, Townhomes, Eligible Condominiums, PUDs, and eligible residential development.
Potential Capital Structure
Qualifying projects may have financing available for land acquisition, existing land basis, vertical construction, eligible construction costs, and an interest reserve where applicable.
Potential Leverage
Up to approximately 75% of qualifying land value/purchase price on eligible permitted transactions. Lower leverage may apply before permits. Up to 100% of eligible construction costs may be available within applicable maximum LTC and completed-value constraints.
Total LTC
May approach approximately 85%–90% on qualifying transactions depending on program structure.
Completed Value
Applicable maximum completed-value/ARV constraints apply.
Term
Generally short-term construction financing, approximately 12–24 months where applicable.
Credit
Minimum 680 FICO on qualifying transactions.
Financing parameters are indicative and subject to current program availability, borrower and property eligibility, underwriting, due diligence, documentation, market conditions, and applicable capital-source requirements. Information shown does not constitute an approval or commitment to lend.
Pricing + Cost Considerations
Look beyond the rate
The interest rate is one part of the economics of a transaction. East Towne Capital evaluates the complete financing structure so borrowers can understand the potential cost of capital before moving forward.
Interest Rate
Current pricing available by request.
East Towne Capital Fee
Varies by transaction and financing structure.
Capital Source Origination / Financing Fee
Separate from East Towne Capital's fee; varies by financing structure and applicable program.
Third-Party Costs
Transaction dependent.
Prepayment
Program dependent.
Extension Provisions
May apply depending upon financing structure.
Other Transaction Costs
May apply.
Construction Financing Cost Considerations
Construction financing should be evaluated based on the entire project capital structure rather than interest rate alone.
East Towne Capital LLC fees, when applicable, are separate from any origination fees, points, underwriting fees, commitment fees, or other charges assessed by the applicable capital source. A transaction may also involve independent third-party expenses, including appraisal, legal, title, settlement, inspection, environmental, engineering, insurance, recording, and other due-diligence costs. East Towne Capital's fee is due only upon the successful closing of your loan. No fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. At closing, the applicable fee is disclosed and paid as part of the closing transaction and reflected on the applicable closing statement (HUD-1 or closing disclosure), separate from lender and third-party charges. The fees and expenses applicable to a particular transaction depend on the financing structure, property, borrower or sponsor, and program requirements and will be identified as applicable during the financing process. Rates, fees, terms, and program availability are subject to change. Information presented on this website does not constitute an approval or commitment to provide financing.
Fee Disclosure
FEE DISCLOSURE: East Towne Capital LLC may charge fees in connection with arranging, structuring, or facilitating a financing transaction. East Towne Capital's fees are separate from and in addition to any origination points, underwriting fees, commitment fees, administrative charges, or other financing costs imposed by the applicable capital source. East Towne Capital's fee is due only upon the successful closing of your loan; no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. When applicable, the fee is collected at the closing table and disclosed and paid as part of the closing transaction on the settlement statement (HUD-1 or closing disclosure). Independent third-party costs, including appraisal, legal, title, settlement, insurance, environmental, engineering, inspection, recording, and other due-diligence expenses, may also apply. Actual rates, fees, costs, and financing terms vary by transaction and are subject to applicable program requirements, underwriting, due diligence, documentation, market conditions, and final approval. Nothing contained on this website constitutes an offer, approval, commitment to lend, or guarantee of financing.
Common Questions
Questions about ground-up construction
What information does East Towne Capital need to review a construction project?
Land basis or purchase price, construction budget, plans and permits, builder experience, project schedule, completed value, and exit strategy.
How is LTC calculated?
Loan-to-cost compares total financing to the total project cost — land, hard costs, soft costs, and reserves. Qualifying transactions may approach approximately 85%–90% LTC depending on program structure.
How are land value and purchase price considered?
Up to approximately 75% of qualifying land value or purchase price may be financed on eligible permitted transactions; lower leverage may apply before permits are in place.
Are plans and permits required?
Permitted projects generally support higher leverage. East Towne Capital can review pre-permit transactions, though structure and leverage may differ.
How are construction draws handled?
Eligible construction costs are typically funded through a draw schedule tied to completed work and inspections, within the applicable LTC and completed-value constraints.
Ready to Break Ground?
Tell us about your project, construction plan, and capital needs. We’ll explore a financing structure designed to move your development forward.
Minimum Credit Score: 680+ (FICO)
No upfront East Towne Capital fee. Our fee is due only when your loan successfully closes. If your loan does not close, no East Towne Capital fee is due.