Ground-Up Construction Loans in Missouri: what to know
- Ground-Up Construction Loans are business-purpose loans, so you do not need to live in Missouri to finance property here. We arrange them for Missouri properties through our national lender network.
- Budget permit timelines for your city into the project schedule; permit delays are the most common reason flips need an extension.
Who it is for
- Spec builders
- Investors building rentals to hold
- Infill lots and teardown-rebuilds
Typical Ground-Up Construction Loans requirements in Missouri
| Loan-to-cost | Typically 75–90% of total cost |
|---|---|
| ARV cap | Commonly 65–75% of completed value |
| Terms | 12–24 months, interest-only on funds drawn |
| Draws | Released by phase after inspection |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Submit plans, permits, budget and builder resume.
- Appraisal sets the completed value.
- Lender funds draws as phases finish.
- Sell or refinance into a DSCR loan at completion.
Try the Fix and Flip Profit Calculator
Pros and cons
Advantages
- Interest only on drawn funds
- Builds equity at completion
Trade-offs
- Permitting and timeline risk
- Builder experience required
Documents you’ll need
- Approved plans and permits
- Line-item budget
- Builder license and project history
- Land contract or deed
Ground-Up Construction Loans FAQ
Can I get a Ground-Up Construction Loan in Missouri?
Yes. Ground-Up Construction Loans are available for Missouri investment properties where state law permits, through our national lender network.
Do I need to live in Missouri?
No. Investment-property loans are based on the property and the deal, so out-of-state investors can finance Missouri rentals and flips.
Can I build a rental and keep it?
Yes. A common path is a construction loan during the build, then a DSCR refinance once it is rented.
How much can I borrow for new construction?
Typically 75 to 90% of total project cost, capped around 65 to 75% of the completed value. You bring the rest as cash or land equity.
Does land equity count as my down payment?
Usually yes. If you own the lot free and clear or have equity in it, most lenders credit that toward your required investment.
How do construction draws work?
The lender releases funds in phases as work is completed and inspected. You pay interest only on what has been drawn, not the full loan amount.
How long do construction loan terms last?
Usually 12 to 24 months, interest-only. That should cover the build plus a buffer for permits and inspections.
Do I need building experience?
Most lenders want to see a track record, either yours or your builder’s. First-time builders usually need an experienced general contractor on the project.
What does a construction loan cost?
Rates are similar to flip loans, roughly 9 to 12%, plus 1 to 2 points. Budget for inspection fees on each draw too.
Can I get a construction loan as an individual?
Most investor construction lenders prefer an LLC, but the bigger factor is experience and a realistic budget. Talk to us about your specific project.
What happens when construction is done?
You sell, or you refinance into permanent financing. For a rental, that usually means a DSCR loan based on the new appraised value and market rent.
How Ground-Up Construction Loans compare
| Ground-Up Construction Loans | Fix and Flip Loans | DSCR Loans | |
|---|---|---|---|
| Best for | Spec builders | Buying distressed or dated properties to renovate and sell | Investors whose tax returns show low income after write-offs |
| Down payment | , | , | 20–25% down; up to 80% LTV on purchase |
| Credit | , | Typically 620–680 | Typically 620–680 (some programs 600) |
| Income docs | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Fix and Flip Loans
A fix and flip loan is short-term (usually 12–18 months), interest-only financing that covers most of a distressed property’s purchase price and up to 100% of renovation costs, repaid when you sell or refinance.
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).