Hard Money Lenders of Los Angeles
Construction Contractors - hard money loans Los Angeles

Borrower Solutions

Construction Contractors in Los Angeles, CA

Ground-up construction financing and spec home building loans for licensed contractors throughout Los Angeles County

Financing for Construction Contractors

Construction contractors in Los Angeles operate in one of the nation's most active and lucrative building markets. From spec homes in emerging neighborhoods to custom residences in established enclaves, the demand for new construction continues to outpace supply. However, accessing capital for construction projects presents unique challenges that traditional lenders often struggle to address. Hard money construction loans provide contractors with the specialized financing needed to fund ground-up development and maximize their building capacity.

The Los Angeles construction landscape requires contractors to navigate complex permitting processes, high land costs, stringent building codes, and competitive labor markets. Successful contractors must maintain efficient operations while managing the capital intensity of multiple concurrent projects. Hard money construction financing offers flexibility that aligns with the realities of residential construction, including draw-based funding that matches capital deployment with project milestones.
Our construction loan programs are designed specifically for licensed contractors building single-family homes, townhomes, and small multi-family projects. We understand the construction business from lot acquisition through certificate of occupancy, and our lending approach reflects this expertise. Whether you're building your first spec home or managing a pipeline of concurrent projects, we provide the capital and support to grow your construction business in the Los Angeles market.

Benefits for Construction Contractors

We understand the unique financing needs of construction contractors in the Los Angeles market. Our programs offer specialized solutions designed for your success.

Ground-up construction financing
Spec home building loans
Quick draw processing
Contractor discount programs

Get Started Today

Ready to explore financing options for Construction Contractors? Our team is here to help.

Fast Approval
Competitive Rates
Dedicated Support
Call (213) 667-4815

How We Help Construction Contractors

Lot acquisition financing enables contractors to purchase developable land while securing permits and finalizing construction plans. Los Angeles has limited available land for new construction, and desirable lots often sell quickly to prepared buyers. Our acquisition loans provide the capital to secure lots while you complete pre-construction activities.

Vertical construction financing covers all building costs from foundation through final finishes. Our draw schedule aligns funding with construction milestones, ensuring adequate capital at each project phase while protecting the lender's interest. Typical draw points include completion of foundation, framing, mechanical/electrical/plumbing rough-in, drywall, and final finishes. This milestone-based approach helps contractors maintain cash flow while managing project risk.

Spec home construction represents the primary application for contractor financing, with loan terms structured around typical 8-14 month build schedules in Los Angeles. We finance both conventional stick-built homes and modern construction methods including modular and panelized systems. For contractors building multiple homes simultaneously, we offer portfolio construction facilities that streamline financing across projects.

Infrastructure and land development loans support contractors expanding into small subdivision development. These loans cover lot improvement costs including grading, utilities, streets, and common area development for projects of 5-25 lots.

Program Benefits

Ground-up construction financing

Take advantage of our specialized ground-up construction financing designed specifically for construction contractors.

Spec home building loans

Take advantage of our specialized spec home building loans designed specifically for construction contractors.

Quick draw processing

Take advantage of our specialized quick draw processing designed specifically for construction contractors.

Contractor discount programs

Take advantage of our specialized contractor discount programs designed specifically for construction contractors.

Frequently Asked Questions

What contractor qualifications do you require for construction loans?

We require an active California contractor license (Class B General Building or appropriate specialty) in good standing with the Contractors State License Board. Contractors must carry general liability insurance and workers compensation coverage as required by California law. We look for demonstrated experience building similar projects, typically 3+ completed projects of comparable scope for spec home loans. For larger or more complex projects, we may require a stronger track record. Newer contractors may qualify with experienced partners or joint venture arrangements until they establish independent track records.

How do construction draws work?

Construction draws release funds as specific project milestones are completed. Before construction begins, we establish a draw schedule based on your budget and timeline. Typical draw points include: (1) Foundation complete, (2) Framing and roof dry-in, (3) MEP rough-in complete, (4) Drywall and interior finishes, and (5) Final completion. To request a draw, you submit an application with photos documenting completed work. We inspect within 24-48 hours and release funds promptly upon verification. This process protects both parties by ensuring work is completed before additional funds are advanced.

Do you finance both the land purchase and construction?

Yes, we can structure loans that cover both land acquisition and construction costs. Typically, we require 20-30% equity in the land (or cash down payment for acquisition) and finance 100% of vertical construction costs. The loan amount is based on the total project cost and the completed value of the home. For contractors who already own lots, we can provide construction-only financing. Our combined acquisition and construction loans typically have 12-18 month terms with interest-only payments during construction.

What if construction takes longer than expected?

Construction delays are common in Los Angeles due to weather, permit issues, material availability, or subcontractor scheduling. Our construction loans include built-in timeline flexibility with 12-18 month terms to accommodate typical delays. If a project extends beyond the initial term, we can usually extend the loan for additional months with an extension fee. We communicate regularly with contractors about project status and work proactively to address delays. Significant delays that threaten project completion trigger collaborative problem-solving rather than immediate default.

Can I get financing for multiple spec homes at once?

Yes, established contractors with proven track records can qualify for portfolio construction facilities that finance multiple concurrent projects. These facilities provide a master credit line that you can draw against as you acquire lots and begin new projects. Portfolio financing streamlines the approval process for subsequent projects and can provide better terms based on your overall relationship. Requirements for portfolio facilities include strong historical performance, adequate financial capacity to handle multiple projects, and demonstrated systems for managing concurrent construction.

Explore Other Borrower Types

Multi-Family Properties

Hard money lending solutions for duplexes, triplexes, apartment buildings, and multi-family investments.

Commercial Real Estate Investors

Tailored hard money loans for investors in office, retail, industrial, and mixed-use commercial properties.

Residential Flippers

Specialized financing for house flippers looking to purchase, renovate, and sell residential properties.

Ready to Get Started?

Contact us today to discuss your financing needs as a Construction Contractors.

Call (213) 667-4815