New Construction Loans
New construction projects often come with tight timelines, evolving budgets, and unexpected costs. At AFI Private Lenders, we specialize in new construction loans that give builders, developers, and investors the short-term capital they need to break ground and bring projects to life. Whether you’re building a custom home, a multi-family property, or a commercial development, we offer flexible financing solutions designed to keep your construction moving — from the foundation to the final finish.
If you already own the land or have substantial equity in the project, we can structure a loan around that asset to help you secure funding fast. Take the first step toward building your vision — see if you pre-qualify today!
Why Choose A New Construction Loan?
Construction projects don’t wait — and neither should your financing. With a new construction loan from AFI Private Lenders, you get access to fast, short-term capital that’s tailored to your project timeline. Unlike traditional loans, which are slow and rigid, our private construction financing is designed for speed, flexibility, and simplicity.
We understand that materials, permits, contractors, and inspections all require cash flow at different stages. Our loan structures are designed to fund your project in phases, matching the flow of construction and keeping your project on track — even when unexpected costs arise.
New Construction vs Traditional Loans
While banks and conventional lenders require extensive documentation, long approval times, and rigid underwriting criteria, AFI Private Lenders offers an alternative: asset-based construction loans with minimal red tape and fast approvals.
Traditional loans often fall short for ground-up construction, especially if you’re building to sell or refinance later. Our new construction loans are specifically designed for short-term use — giving you the capital needed to fund construction until the project is completed and permanent financing is in place.
How New Construction Works
New construction loans from AFI provide staged funding based on your construction milestones. These draw-based loans are tailored to match your build schedule — typically disbursed in phases such as land acquisition, foundation, framing, and final build-out. Funds are released as each phase is completed and verified, ensuring your project maintains momentum.
Whether you’re a builder, investor, or developer, we work with you to create a draw schedule that aligns with your timeline, allowing you to stay focused on building while we handle the financing.
Typical Loan Terms for New Construction
Frequently Asked Questions
A new construction loan is a short-term financing option used to fund the building of a new property from the ground up. With Action Funding, investors can finance both the land purchase (if needed) and construction costs in one convenient loan package.
Unlike traditional mortgages, construction loans are disbursed in stages, known as “draws.” Funds are released as construction progresses — typically after specific milestones like foundation, framing, and completion — ensuring the project stays on track.
While having experience helps, it’s not always required. We often work with investors partnering with licensed builders or general contractors. Our team evaluates both the borrower and builder to ensure a smooth, successful project.
Loan amounts depend on factors such as project cost, property value, and borrower experience. Action Funding typically finances up to 75–85% of total project costs or 65–75% of the after-construction appraised value (ARV).
Most new construction loans are short-term (6 to 18 months) with interest-only payments during construction. Once the project is complete, you can either sell the property or refinance into a DSCR or conventional loan.
Action Funding specializes in fast closings. Depending on the complexity of the project and documentation, most construction loans close in 2–4 weeks.