Building from the ground up is one of the most profitable strategies in real estate — but it requires the right financing partner. Here’s everything you need to know about new construction loans in 2026.
How New Construction Loans Work
Unlike a traditional mortgage where you receive funds at closing, construction loans disburse funds in draws as the project progresses. Each draw is released after inspection confirms the work is complete.
Typical Draw Schedule
- Land/Acquisition — Up to 65% of land value at closing
- Foundation — After foundation is poured and inspected
- Framing — After framing, roofing, and rough mechanicals
- Interior — After drywall, flooring, and fixtures
- Final — After certificate of occupancy
Hard Hat Capital New Construction Terms
- Loan amounts: $100K – $3M
- Up to 95% LTC / 75% ARV
- Up to 65% land value for initial advance
- 12-24 month terms (interest-only)
- In-house construction management
- No pre-payment penalty
- New construction experience not required (min 1 rehab in last 36 months)
Why In-House Construction Management Matters
Many lenders outsource their draw inspections to third parties who don’t understand construction. At Hard Hat Capital, our team has hands-on construction experience. We understand timelines, change orders, and the reality of building.