New construction loan documents & draw-schedule origination
Price a ground-up build, read the budget and as-complete appraisal, build the draw schedule, and generate the construction loan agreement with its completion terms — from attorney-drafted templates, under your own brand.
A new construction loan is ground-up financing for an investor or builder to construct a property. It typically funds the land plus vertical construction costs in draws released against inspected progress, with interest charged only on the drawn balance, and commonly runs 12–24 months as a business-purpose loan.
To produce its documents, docOrder quotes the deal against your loan-to-cost rules, reads the builder's budget and the as-complete appraisal into the file, builds the draw schedule, and assembles the construction loan agreement, note, security instrument, and completion guaranty from attorney-drafted templates by deterministic find-and-replace — unlimited, with no per-deal document fee.
How docOrder handles a new-construction loan
One branded link runs the file from quote to closing package. Here is the path a new-construction deal takes through the engine.
Quote against loan-to-cost
The borrower prices the build on your branded link — land cost plus construction budget — against the loan-to-cost and as-complete rules you set.
Term sheet e-signed, file opens
The borrower e-signs the branded term sheet; the file opens in your pipeline with the construction holdback captured.
Budget & as-complete appraisal read in
The engine reads the builder's budget, the land purchase or payoff, and the as-complete appraisal into the file, capturing the legal description and APN from title and cross-checking them.
Draw schedule built
The construction budget becomes a draw schedule on the file so each release ties to inspected progress — interest accrues on the drawn balance.
One click: construction loan agreement
Your state-specific package — construction loan agreement, note, mortgage or deed of trust, draw schedule, and completion guaranty — generates from attorney-drafted templates.
Documents a new-construction loan needs
A ground-up file is driven by plans, budget, and permits. Here is the usual intake and what the engine produces.
Intake & underwriting
- Plans & specifications
- Builder's budget / cost breakdown
- Permits (or evidence of permitting status)
- Land purchase contract or payoff statement
- Builder / borrower experience & track record
- As-complete (subject-to) appraisal
- Title commitment
- Builder's risk insurance
- Entity formation docs
Closing package the engine generates
- Construction loan agreement
- Promissory note (interest on drawn balance)
- Mortgage or deed of trust (state-specific)
- Draw schedule & disbursement terms
- Completion guaranty
- Personal guaranty (entity borrowers)
- Business-purpose certifications & state riders
Typical new-construction loan terms
What these loans commonly look like in the business-purpose market, so you can set your own box.
| Term | Typical market range |
|---|---|
| Term | 12–24 months, interest-only on drawn funds |
| Loan-to-cost | up to ~75–85% of total cost |
| Land vs build | typically a share of land + construction in draws |
| Draws | released against inspected progress |
| Points | ~1–3 origination points |
| Purpose | business-purpose / non-owner-occupied only |
Ranges above are common business-purpose market terms for context only — not a docOrder product, offer, or guarantee. You set your own pricing and credit box; the engine quotes every deal from your own LTV and rate rules.
How the engine quotes, reads & generates it
Quoting. The pricing engine sizes a ground-up deal on loan-to-cost and as-complete value from your own rules, separating the land advance from the construction holdback, and turns it into a branded term sheet the borrower e-signs.
Reading. It reads the builder's budget, the land purchase or payoff, and the as-complete appraisal into the file, captures the legal description and APN from title, and cross-checks the APN across title and appraisal before documents can generate. The construction budget becomes a draw schedule the file tracks.
Generating. The construction loan agreement, note, security instrument, draw schedule, and completion guaranty are assembled by deterministic find-and-replace from attorney-drafted templates. The templates and the generated loan documents never go to an outside AI, every field is verified, and generation is unlimited with no per-deal fee across 38 states and growing.
New construction loan FAQ
The questions lenders ask most about new-construction loans and producing their documents.
What is a new construction (ground-up) loan?
A new construction loan is ground-up financing for an investor or builder to construct a property from the ground up. It typically funds the land plus vertical construction costs in draws released against inspected progress, charges interest only on the drawn balance, and commonly runs 12 to 24 months as a business-purpose loan.
What documents does a ground-up construction loan need?
Intake usually includes plans and specifications, the builder's budget, permits, the land purchase contract or payoff, the builder's experience, an as-complete appraisal, a title commitment, builder's risk insurance, and entity documents. The closing package adds a construction loan agreement, a draw schedule, and a completion guaranty to the note and security instrument.
How do construction draws work?
The construction budget is split into a draw schedule. As the builder completes stages, the lender inspects the work and releases the next draw, and interest accrues only on the amount drawn rather than the full commitment. docOrder builds the draw schedule into the loan agreement and tracks it on the file; you approve each release.
What are typical new-construction terms?
Ground-up loans commonly run 12 to 24 months, interest-only on drawn funds, with loan-to-cost up to roughly 75 to 85 percent of total project cost and one to three points. These are general market ranges; the lender sets the actual terms and docOrder quotes from the lender's own rules.
How does docOrder build the draw schedule and loan agreement?
When the deal is quoted, the construction holdback is captured and turned into a draw schedule on the file. The schedule is written into the construction loan agreement in the closing package, which docOrder assembles by deterministic find-and-replace from attorney-drafted templates — these templates and the generated documents never go to an outside AI.
Does docOrder manage inspections and draw releases?
docOrder builds and tracks the draw schedule on the file and generates the loan agreement that governs it, but ordering inspections and approving each release stay with you. The engine keeps the schedule, the funded balance, and the funding milestones visible so nothing is released out of order.
Is there a per-document fee for construction loan documents?
No. Loan-document generation is included and unlimited on every plan, from $19 per month, with no per-deal or per-document fee — including redraws as a budget or schedule changes.
Other loan types
docOrder runs the whole business-purpose desk. Explore the rest.
Run your new-construction closings under your own brand.
Quote it, read the documents, and generate the state-specific closing package from attorney-drafted templates — one engine you own, live in minutes.