New Construction Loans in Maryland, DC & Virginia
Building from the ground up (or tearing down to rebuild) is its own animal. Property Flip Loan structures short-term new construction loans for experienced investors and builders who need fast, disciplined capital with a clean draw process and real risk controls.
Bottom line: We prefer that you own the lot free and clear, have stamped plans and permits in hand, and a clear path to CO (Certificate of Occupancy) and either sale or take-out financing.
Why Work With Property Flip Loan
Purpose-built for ground-up: Funding that matches the realities of new construction—front-loaded expenses, inspections, retainage, and tight timelines.
Flexible leverage: Up to 70% of actual project cost (deal-dependent). We typically focus proceeds on vertical construction (hard + eligible soft costs).
Speed when it counts: Streamlined underwriting and fast closings once plans/permits and budget are set.
Draw process that protects the project: Progress-based draws, lien waivers, and title date-downs to keep everyone paid and the title clean.
Risk management baked in: Builder’s risk insurance, inspections, and contingency planning are standard asks.
Local expertise: Focus on Maryland, Washington, DC, and Virginia infill, teardowns, and small subdivision builds.
Business-purpose loans only. Non-owner-occupied projects.
Standard Terms Snapshot
Use: Ground-up new construction, infill, teardown/rebuild
Geography: Maryland • Washington, DC • Virginia
Leverage: Up to 70% of actual cost (hard + eligible soft)
Term: Up to 12 months (extensions available)
Prepay: No prepayment penalties
Lot: Prefer owned free & clear (case-by-case if financed)
Must have: Stamped plans & permits before closing
Structure: First lien, interest-only monthly payments
(We don’t publish rates online; final terms depend on project, sponsor, and market.)
What Makes New Construction Different (And How We De-Risk It)
1) Clear plans, permits, and budget.
We close when the buildable plan set and permits are ready and the Schedule of Values is locked—so the draw process is predictable.
2) Builder’s risk insurance.
We require builder’s risk (course of construction) coverage to protect materials and the work in place; policies can extend to soft costs or loss-of-rent/BI where appropriate.
3) Appraised “as-completed” value.
Appraisals for new construction are typically subject to completion per plans and specs; we size conservatively against the completed asset and project costs.
4) Controlled draws with title protection.
Each draw is tied to verified progress, lien waivers, and title updates/date-down endorsements to keep the chain of title clean as funds are disbursed.
5) Documentation that moves projects forward.
We commonly accept AIA-style pay applications (G702/G703) tied to the schedule of values and retainage.
Our Draw & Disbursement Process (What to Expect)
Baseline: Approved budget & Schedule of Values; builder’s risk in place; permits active.
Request: Submit a draw with photos/invoices and conditional lien waivers from the GC and key subs.
Verification: Third-party or lender inspection as needed.
Title check: Date-down/title update prior to funding; issue appropriate construction endorsements.
Funding: We release the draw (less retainage if applicable).
Final: Unconditional waivers and CO prior to releasing retainage.
What We Look For (Underwriting Snapshot)
Sponsor: Relevant build experience (or a strong GC team and owner’s rep).
Land/Lot: Ideally owned free and clear; proper survey and access/utility confirmations.
Plans & Permits: Full stamped set, permit card active, inspections scheduled.
Budget: Realistic hard costs + a contingency (typically 5–10%) for surprises.
Marketability: Proven buyer/renter demand; realistic exit pricing.
Risk Controls: Builder’s risk, GL coverage, lien waivers, and a clean title path through company.
Example: Ground-Up Infill Build
Land: Owned free & clear
Hard Costs: $380,000
Eligible Soft Costs: $40,000 (permits, engineering, tap fees, etc.)
Actual Project Cost: $420,000
Max Loan @ 70% of actual cost: $294,000
Funds released in progress draws against the Schedule of Values
Retainage held until CO
Borrower covers the remaining costs + contingency and standard closing costs
Required Documents (Typical)
Entity docs & ID
Stamped plans & active permits
Budget + Schedule of Values (AIA-style acceptable)
GC contract, license, and COI (insurance)
Builder’s risk policy (lender named mortgagee/loss payee)
Survey, site plan, utility letters (as applicable)
FAQs
Do you finance the lot purchase?
Our strong preference is that the lot is owned free and clear. If the land is financed, we’ll review on a case-by-case basis and may require subordination or payoff at close.
How are draws handled?
Progress-based with lien waivers, inspections, and title date-downs/endorsements before each disbursement.
Do you require builder’s risk?
Yes—builder’s risk (course of construction) is required and should cover the project through CO; some projects also include soft-cost or BI/loss-of-rent coverage.
Do you lend on owner-occupied homes?
No. Business-purpose, non-owner-occupied only.
What about appraisal?
Appraised subject to completion per plans/specs; we size the loan to actual cost and completed value.
Ready to Review Your Project?
Send a quick Project Snapshot:
Address / Lot info:
Plans & permits: status + links
Budget & Schedule of Values: PDF or spreadsheet
Timeline: groundbreaking → CO
Team: GC + key subs + experience
Exit: List, pre-sale, or rental + take-out plan