For more than 40 years, Market Capital Lending has helped developers and investors fund projects from the ground up — part of the $375 million+ we've funded for our clients. We've stood behind builders breaking ground right here near Loganville, Georgia and financed projects for developers operating nationwide across 46 states. It's one of the more complex corners of commercial finance, and one we know how to navigate. As a veteran-owned business, we bring the same values to every build: straight advice, relentless advocacy for your project, and treatment that always puts you first. Below is everything you need to know about construction loans — and how we can help you get funded.
What is a construction loan, in plain terms?
Construction loans are short-to-medium-term loans that fund the development of a property from the ground up. Unlike a traditional mortgage, the money isn't handed over all at once — it's released in draws as construction milestones are reached. That structure keeps the capital aligned with where the project actually is, rather than front-loading debt before the work is done.
During the build phase, construction loans are typically interest-only, which keeps carrying costs manageable while there's no income yet. Once the project is complete, the loan is either paid off through a sale or refinanced into permanent long-term financing.
For the full picture, see our guide on commercial construction loans — draws, interest reserve, and the path to permanent financing.
Why is a construction loan paid in draws?
Draws protect both you and the lender. Money is disbursed in stages tied to real progress — foundation poured, framing up, systems in — so debt tracks the work instead of running ahead of it. It's a different structure than the commercial real estate loans used to buy an existing, stabilized building, and it's why construction files call for a lender who understands the milestones — the kind we match you with.
What can a construction loan cover?
A construction loan carries a project from raw land to a certificate of occupancy. Typical uses include:
- Land acquisition and site preparation
- Site infrastructure — grading, utilities, and access
- Hard construction costs — the physical build itself
- Soft costs including architecture, permits, and engineering
- Interest reserves to cover carrying costs during the build phase
- Transition to permanent financing upon completion
For horizontal work that turns raw acreage into buildable lots, ask about our subdivision and infill development financing. And if you need to move fast between phases or bridge a gap before permanent financing lands, our bridge loans often fit alongside a construction facility.
Who construction financing is for
Construction lending rewards experience and a credible plan. It's a strong fit if you're:
- A commercial developer breaking ground on a new project
- A multifamily developer building apartment or mixed-use properties
- An investor developing a property for long-term hold or sale
- An experienced builder who wants a lender that understands the construction process
Investors planning instead to renovate and resell existing properties should look at our fix-and-flip loans. Typical borrowers come to us with credit around 680 or better and a deal of $300,000 or more — but a strong project and solid experience can open the door even when the profile isn't picture-perfect.
Why developers choose Market Capital Lending
We built this firm for the borrower the banks overlook — the developer whose deal doesn't fit neatly into a single branch's box. As a lender and brokerage with a network of 40–50 lenders, we're not limited to one bank's construction rulebook. If one lender passes, we know where else the project can land.
We're also a veteran-owned small business with 40+ years of combined experience and over $375 million funded. You work directly with people who understand development, move quickly, and know how to present a project in the strongest possible light. (Rates, approval, and terms vary by credit, collateral, loan amount, and underwriting.)
How the process works
Construction underwriting looks at the project budget, your development experience, the strength of the construction team, the projected value at completion, and the exit strategy. Our job is to package your file for the right lender and guide it through to closing. When you're ready, start your application — it takes just a few minutes — or contact our team to talk through the project first.
Construction loans in your market
While we fund deals in 46 states, most of our business comes from Georgia, Alabama, and Florida — and especially the communities within about an hour of our Loganville office. See our financing options across Georgia or the full map of where we lend to find your market.
Draw Schedule, Interest Reserve and Permanent Takeout
A commercial construction or renovation loan funds in stages against a draw schedule as work is completed, often with an interest reserve to cover payments during the build. The key question is the permanent takeout — how the construction loan converts to, or refinances into, long-term financing once the property is complete and stabilized.
Related: bridge loans, commercial real estate loans, and subdivision & infill development.
Flexible payment structures
Ground-up construction ties up cash for months, so payment flexibility matters. On construction loans you can choose deferred or monthly payments, and finance the origination points and fees into the loan rather than paying them out of pocket — keeping more capital available for the build. Available on purchase, refinance, rate-and-term, and cash-out transactions.
Frequently asked questions
How is a construction loan different from a regular mortgage?
A mortgage funds the purchase of a finished, standing property in a single disbursement. A construction loan funds a build in progress, releasing money in draws as milestones are reached and running interest-only during the build. When the project is done, it's paid off by a sale or refinanced into permanent financing.
What do lenders look for on a construction deal?
The project budget, your development experience, the strength of your construction team, the projected value at completion, and a clear exit strategy. Construction is a more complex category, so lenders want confidence the project will finish on time, on budget, and with a solid path to repayment.
Can first-time developers get a construction loan?
It's harder, because most construction lenders lean heavily on track record. That said, a strong project, an experienced construction team, and a credible plan can still make a deal work. Because we work with 40–50 lenders, we can shop your file to the partners whose guidelines best fit your situation.
How large of a construction loan can you arrange?
Our sweet spot starts at $300,000, and through our lender network we arrange financing well into the millions. For very large commercial projects, we also have partners that handle deals from $2 million to $100 million and up.
What happens to the loan when construction is finished?
At completion the construction loan is retired — either you sell the property and pay it off, or you refinance into permanent long-term financing. We can help line up that exit, including bridge financing if you need to cover the gap between phases.
Do you only serve Georgia?
No — we arrange construction financing in 46 states. Most of our clients are in Georgia, Alabama, and Florida, with a concentration in the metro-Atlanta and Loganville-area markets, but we're happy to help wherever your project is.