Access fast, flexible construction financing for ground-up residential development, spec builds, multifamily new construction, and commercial projects. Select Capital Funding structures construction loans around your project — not rigid bank timelines or one-size-fits-all guidelines — so you can break ground and build with confidence.
Finance the ground-up construction of speculative residential homes — attached, detached, or in-fill — with flexible draws that match your build timeline.
Fund new commercial construction projects — retail, office, mixed-use, and industrial — when traditional lenders can't accommodate your project type or timeline.
Flexible construction financing for multifamily apartment communities and residential developments where speed and customized draw structures are essential to execution.
Rescue stalled or partially completed construction projects with a flexible lender who will evaluate broken priority situations and fund through to completion.
Move from approval to groundbreaking when the window for your project is tight — same-day expressions of interest allow you to commit while banks are still reviewing.
Finance mixed-use, non-standard, or unconventional construction projects that don't fit neatly into a traditional lender's project type matrix.
Flexible construction loan financing for spec homes, custom builds, and attached or detached residential development projects built from the ground up.
Construction financing for new apartment communities and multifamily developments, with flexible draw schedules structured around your project's milestones.
Flexible construction financing for new commercial development projects including office, retail, and mixed-use assets where traditional lenders fall short.
Funding to complete stalled, partially built, or broken-priority construction projects — evaluated based on project strength and remaining scope of work.
Fast, flexible construction and renovation capital for investors acquiring and substantially renovating residential properties with a defined resale timeline.
Construction financing for mixed-use developments combining residential, retail, or commercial uses — flexible structuring for projects that traditional lenders won't fund.
Finance both the land acquisition and construction costs in a single flexible loan structure — eliminating the need to close two separate financings at different stages.
Flexible construction loan programs for builders developing multiple spec homes simultaneously, with draw structures that keep multiple projects moving at once.
Share your project details — property address, project type, budget, plans, permit status, and borrower background with our team.
We analyze the essential elements: budget, plans and specs, permit status, site conditions, GC and construction team, and overall project viability.
We structure a flexible construction loan around your project — including draw schedule, interest reserve, LTC, and term — and present a term sheet fast.
Setup Close quickly and establish your draw schedule. Our in-house construction team takes over fund controls and inspection coordination from day one.
Execute your construction with confidence — submit draw requests, receive approximately one-week turnaround, and complete your project on time and on budget.
| Feature | Traditional Bank Construction Loan | Flexible Private Construction Loan |
|---|---|---|
| Approval Timeline | Weeks to months — committee driven | Same-day expression of interest |
| Draw Schedule | Fixed, rigid milestones — no exceptions | Customized around your project timeline |
| Draw Turnaround | Weeks per draw request | Approximately one week per draw |
| Documentation Required | Extensive — full financial package | Streamlined — project quality focused |
| Credit Requirements | Strict minimum credit score thresholds | Project & experience-based underwriting |
| Project Types Funded | Standard construction types only | Spec, multifamily, commercial, broken projects |
| Broken / Stalled Projects | Rarely considered | Evaluated case by case |
| Acquisition + Construction | Typically two separate closings | Combined into a single loan structure |
| Prepayment Penalty | Often applies | None |
| In-House Construction Management | No — outsourced or borrower-managed | Yes — in-house fund control and inspections |
A flexible construction loan is a short-term financing solution used to fund the ground-up construction or substantial renovation of a property, provided by a private lender rather than a traditional bank. What makes it “flexible” is the lender’s ability to adapt key loan parameters — including the draw schedule, underwriting criteria, eligible project types, and loan structure — to match the specific needs of the project and the builder’s execution plan. Unlike bank construction loans, which follow rigid committee-driven processes and fixed disbursement schedules, flexible construction lenders evaluate deals based on overall project quality and borrower experience, then structure financing to keep the project moving.
Traditional bank construction loans are characterized by strict credit requirements, lengthy documentation packages, committee-driven approvals that can take weeks or months, and fixed draw schedules that may not align with how a project actually progresses. Flexible private construction lenders take a fundamentally different approach: they evaluate the project’s overall quality, the borrower’s experience, and the development plan rather than relying solely on rigid credit thresholds or standard checklists. This allows for faster approvals, customized draw disbursements, approximately one-week draw turnaround times, and the ability to fund project types that banks routinely decline — including spec builds, broken projects, and combined acquisition-plus-construction structures.
Flexible construction loans can be used for a wide range of project types, including:
Each project is reviewed individually based on its scope, budget, plans, permit status, site conditions, and the borrower’s construction experience.
A draw schedule is the disbursement plan that defines when and how much of the construction loan is released to the borrower throughout the build. Rather than advancing the full loan amount at closing, construction loans disburse funds in stages — or “draws” — typically tied to completed milestones or phases of construction, such as foundation completion, framing, rough-in mechanical and electrical, exterior envelope, and interior finishes. Flexible lenders work with borrowers to build a draw schedule that reflects the actual sequence and timing of their specific project, rather than applying a generic template that may not match how the project will realistically progress.
An interest reserve is a portion of the construction loan set aside at closing to cover monthly interest payments on the loan during the construction period. Rather than requiring the borrower to make out-of-pocket interest payments while the project is under construction and not yet generating income or proceeds, the interest reserve automatically covers those payments from the loan itself as they come due. This preserves the borrower’s working capital for project expenses and construction costs. Not all construction loans include interest reserves — whether one is structured into the loan depends on the deal, the lender, and the overall loan-to-cost calculation.
Select Capital Funding’s construction loan program offers up to 90% loan-to-cost (LTC) on both land and construction costs, with loan-to-completed value (LTCV) up to 70%. These ratios reflect the strength of the project, the borrower’s experience, and the overall feasibility of the business plan. Each deal is underwritten on its individual merits — LTC and LTCV are evaluated in the context of the specific project, market, and exit strategy rather than applied as blanket limits across all transactions.
Yes. Select Capital Funding can structure loans that include both the land acquisition and construction costs in a single financing, eliminating the need for the borrower to close a separate land loan and then refinance into a construction loan. This combined approach simplifies the process, reduces closing costs, and allows the project to move from acquisition to groundbreaking faster. The ability to finance acquisition alongside construction is a key advantage of working with a flexible private construction lender versus a traditional bank.
Yes. Select Capital Funding evaluates broken-priority situations and partially completed construction projects on a case-by-case basis. This includes projects that have stalled due to funding gaps, contractor issues, or other disruptions. The evaluation focuses on remaining scope of work, current project status, existing lien positions, and the borrower’s plan to complete the project. The ability to rescue and complete a stalled project is an area where flexible private lenders have a significant advantage over traditional banks, which typically will not engage with broken or incomplete construction situations.
Select Capital Funding provides same-day expressions of interest on most construction projects. For transactions where complete project information is provided upfront — including budget, plans and specs, permit status, site conditions, contractor information, and borrower background — deals can advance through underwriting and close quickly enough to allow borrowers to begin construction while traditional lenders are still in review committee. Speed of closing is a core advantage of working with a flexible private construction lender.
After closing, Select Capital Funding’s in-house construction team manages fund controls and on-site inspections throughout the construction process. When a draw request is submitted, our team coordinates inspections to verify completed work and approves disbursements with approximately a one-week turnaround. This in-house approach — rather than outsourcing to a third-party inspector or leaving draw management entirely to the borrower — provides a higher level of oversight and keeps projects on track throughout the build.
Eligibility for a flexible construction loan from Select Capital Funding is based primarily on the overall quality of the project — including the budget, plans and specs, permit status, site conditions, and GC and construction team — combined with the borrower’s relevant construction and real estate experience. Credit history is considered but is not the sole determining factor. Projects are evaluated holistically: a strong project with an experienced builder can qualify even in situations where bank credit criteria would result in a decline. Owner-builders, spec builders, and developers working across residential, multifamily, and commercial project types are all considered.
The initial review process typically includes the following information:
Providing organized, complete project information at the outset allows our team to move quickly, deliver a same-day expression of interest, and advance toward closing without delays.
Whether you’re breaking ground on a new development, completing a stalled project, or financing a spec build portfolio, our team can structure a flexible construction loan around your project, timeline, and goals.
