Timing a Construction Loan So You Don't Bleed Interest
On a ground-up build, when you pull the loan matters almost as much as the rate. Pull too early and you carry interest on idle capital; pull too late and you're scrambling for runway. We've carried that clock ourselves, so we structure around it.
Interest reserves
Instead of writing an interest check every month while the house goes vertical, interest accrues to the loan balance and is paid at sale or refinance. That preserves your working capital for the build itself.
The 12–18 month clock
Most builds run on a 12–18 month term. We time the draw schedule to your milestones so you keep maximum runway to finish, lease, or sell—and we plan the exit (sell vs. construction-to-perm) before you break ground.
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