Ground-Up Construction Loans in Florida
AAPL Member · Direct Lender Since 2016 · NMLS #1979189
Florida is one of the fastest-growing states in the country, and new construction is everywhere — from infill homes in Orlando and Tampa to coastal builds along the Gulf and new development across the Miami metro. Building from the dirt up is a different animal than buying an existing property, and the financing has to match. Ground-up construction loans in Florida from Tidal Loans fund land, materials, and labor through a draw schedule that tracks the build, so the money shows up when each phase is ready to pay for. We’ve financed Florida builders and investors as a direct lender since 2016, and construction is one of our most active Florida products.
A ground-up construction loan is short-term financing for building a new structure from scratch on a vacant or cleared lot. It’s underwritten around the project — the land, the plans, the budget, and what the finished property will be worth — and it disburses in milestones rather than in one lump sum. For Florida investors developing spec homes, infill projects, or small multifamily, it’s the financing built for the job.
Building a small apartment property? See Florida multifamily construction.
How Ground-Up Construction Loans Work
Two numbers drive most construction loans. The first is loan-to-cost (LTC) — how much of the total project cost we’ll fund, often a large majority, with you covering the rest through land equity or cash. The second is loan-to-after-completion-value — we also check that the loan stays within a comfortable percentage of what the finished property will be worth. The deal has to pencil out on both.
The mechanics run on the draw schedule. Rather than releasing all the money at closing, we disburse funds in stages as construction hits defined milestones — foundation, framing, mechanicals, drywall, finish work. Before each draw, an inspection confirms the work is complete, then funds release. You typically pay interest only on the balance drawn so far, so your early payments are small and grow as the project progresses. Model your numbers with our construction loan calculator, and see the full approach on our [ground-up construction hub](/ground-up-construction-loans/).
What Florida Investors Build
The most common project we fund is the spec home — building a single-family house to sell on completion, the new-construction cousin of a [Florida fix and flip](/fix-and-flip-loans-florida/). The second is infill and teardown development, building on a vacant lot or replacing an outdated structure, which is especially active across Florida’s growing metros. The third is build-to-rent, constructing a property specifically to hold as a rental — or a vacation rental — and refinance into a long-term [Florida DSCR loan](/dscr-loan-florida/) once it’s complete and leased. And the fourth is small multifamily construction, building a duplex, triplex, or small apartment building, which often graduates into our [Florida multifamily program](/multifamily-loans-florida/).
Ground-Up Construction Requirements
New construction asks more of the borrower than any other short-term loan, because you’re financing a plan, not a finished asset. Experience carries real weight — builders who’ve completed ground-up projects get the strongest terms, though first-time builders aren’t shut out when the team and plan are solid. The project package matters: architectural plans, a realistic and detailed budget, the permits or a clear path to them (important in Florida, where coastal and storm-code requirements can affect the build), and a timeline. Land and equity are part of the structure — you’ll generally bring the lot and some cash, which sets your loan-to-cost. Credit is reviewed, though the project and team drive the decision. And the exit has to be clear — a sale on completion or a refinance into permanent financing.
Construction Lending Across Florida's Major Markets
We fund ground-up projects across all of Florida’s major markets. In Orlando, we finance constant new construction and infill across a fast-growing metro. In Miami and South Florida, new development and teardown rebuilds keep builders busy. In Tampa and the Gulf Coast, including the Cape Coral–Fort Myers corridor, growth supports spec building and build-to-rent. And in Jacksonville, affordable land makes new construction especially attractive. We also lend across Naples, Tallahassee, Gainesville, Ocala, and the surrounding submarkets statewide.
How Florida Construction Loans Get Paid Off
Every ground-up loan ends one of two ways. If you’re building to sell, the sale of the finished property pays off the loan and books your profit. If you’re building to hold, you refinance into permanent financing once the property is complete and, for a rental, leased — most often a [Florida DSCR loan](/dscr-loan-florida/) that qualifies on the new property’s rent, including short-term rental income in Florida’s strong vacation markets. In some cases a [Florida bridge loan](/bridge-loans-florida/) carries the project through the gap between completion and permanent financing. We map the exit at the start so the whole structure points cleanly at the finish.
A Florida Ground-Up Deal We Funded: Two Orlando Spec Homes
An investor came to us on a referral, mid-build and in a tough spot. He had two ground-up spec homes going up side by side in Orlando, and the lender he’d started with changed the terms on him at the last minute — right when he needed capital to finish. Both projects were underway, but the funding he’d been counting on to carry them to completion had evaporated.
We funded both projects on the same structure — an 85% loan-to-cost construction loan on each file, closed at the same time. Each property needed about $100,420 to reach completion, and because the last-minute change had left him cash-strapped, we funded an additional $82,000 on each file at closing so he had working capital to keep both crews moving. That put roughly $182,420 behind each build — about $364,840 across the two — all closed together.
With both files funded, he finished the two builds, sold them, and rolled straight into his next deal. That’s the job a construction loan is supposed to do: keep a good project moving when the original plan falls through.
Florida Construction Loan Parameters
Loan Details
Frequently Asked Questions
Funds are released through a draw schedule rather than all at once. We disburse money in stages tied to completed milestones — foundation, framing, mechanicals, finish work — and an inspection confirms each stage is done before that draw releases. You typically pay interest only on the funds drawn so far, so your early payments are small and grow as the build progresses.
Experience helps and earns the best terms, because execution is the biggest risk in any build, but first-time builders can still qualify. When a borrower is newer to ground-up construction, we look more closely at the project package and especially the general contractor. A detailed budget, proper plans, and clear permits — including Florida’s coastal and storm-code requirements where they apply — go a long way toward making a first project fundable.
A fix and flip loan renovates an existing structure, while a ground-up construction loan builds a new one from the ground up. Construction loans rely on detailed plans, permits, and a milestone-based draw schedule, and they generally run longer because building takes more time than renovating. Both are short-term investor loans that exit through a sale or a refinance.
Yes. Build-to-rent is a common use, including building vacation rentals in Florida’s tourism markets. You finance the build with a construction loan, then refinance into long-term financing such as a DSCR loan once the property is complete and leased. The DSCR refinance qualifies on the finished property’s rental income — long-term or projected short-term — rather than your personal income.
Most run twelve to twenty-four months to match a typical build timeline, with the exact term set to fit your project’s scope. They’re short-term by design and meant to be replaced once the structure is finished — paid off by a sale or refinanced into permanent financing. We build in realistic margin so the project has room to reach completion.
We lend statewide. Orlando, Miami, Tampa, and Jacksonville are our highest-volume markets, but we finance ground-up construction in Cape Coral, Fort Myers, Naples, Tallahassee, Gainesville, Ocala, and the surrounding areas. Building costs, lot availability, and permitting vary by market, and we structure each loan to fit the project and the local conditions.
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