Building from the ground up in North Carolina is a significant commitment, but for many developers, it offers unmatched control, customization, and return on investment.
North Carolina’s real estate market offers growing opportunities for developers who want to start fresh with new residential or mixed-use projects.
Whether you’re eyeing a build in Raleigh, Charlotte, or the mountains of Asheville, understanding how ground up construction works in North Carolina is key to a successful outcome.
Start your application with Park Place FinanceWhat are ground up construction loans?
Ground up construction loans cover everything from the land purchase to the last coat of paint.
Unlike traditional mortgages, these loans fund the full building process in phases, known as draws.
Here’s what you need to know:
- Short-term, interest-only structure during the build
- Loan-to-cost (LTC) ratio typically ranges from 70% to 85%
- Funds are disbursed based on construction milestones
- Borrowers must provide detailed plans and permits
For example, a borrower might secure a $750,000 loan to cover a $1 million build, releasing funds across six stages—from clearing the lot to finishing interiors. This staged disbursement helps manage risk and ensures alignment with timelines.
Park Place Finance offers flexible construction loan options tailored to the North Carolina market. With fast approvals and in-house underwriting, we keep your project moving.
Why build in North Carolina?
North Carolina has one of the most dynamic housing markets in the Southeast.
Demand continues to grow in key urban and suburban regions, driven by economic growth and in-migration.
Top reasons to build in NC
- Booming metros like Charlotte and Raleigh-Durham
- Low property taxes and strong job markets
- High demand for rental and new single-family homes
- Favorable zoning in suburban and rural areas
Compared to neighboring states like South Carolina or Georgia, North Carolina offers a better blend of affordability, infrastructure investment, and urban-suburban demand balance.
Whether you’re developing a luxury home or multi-unit build-to-rent, North Carolina provides a solid foundation.
Key steps in the ground up construction process
Understanding each phase of a new build helps you plan timelines and manage costs.
Here’s a high-level overview:
- Land acquisition: Secure a lot that matches zoning requirements.
- Pre-construction planning: Finalize architecture, budget, and permits.
- Loan approval and closing: Work with a lender like Park Place Finance to fund the build.
- Construction: Typically occurs in stages—foundation, framing, systems, finishes. Each stage may take 2–3 months.
- Final inspection and appraisal: Ensure the property meets codes and lender expectations.
- Loan payoff/refinance: Sell the home or transition to a long-term mortgage.
Common pitfalls to avoid
Even experienced developers can encounter unexpected hurdles during a ground up build.
Here are some common issues to watch for:
- Underestimating build times
- Delays in permit approvals
- Choosing contractors without local experience
Pro tip: Ask your lender for a clear draw schedule upfront. This document outlines when funds will be released during each phase of construction—helping you manage subcontractors, avoid delays, and stay on budget.
What are the loan requirements in NC?
Each lender may differ slightly, but here are the standard requirements to qualify for a ground up construction loan in North Carolina:
- Credit score of 680+
- Detailed budget and timeline
- Approved architectural plans
- Site survey and zoning clearance
- Builder resume or construction experience
Some borrowers work with licensed general contractors, while others act as their own builder (if qualified).
At Park Place Finance, we work with both models—just bring your experience or your general contractor.
Additionally, North Carolina municipalities may offer impact fee waivers or expedited permit review for certain projects, such as affordable housing or green builds.
Local tips for building in Charlotte, Raleigh, and Asheville
Different cities come with different red tape.
Here’s what to keep in mind for major North Carolina markets:
Charlotte
- Popular for infill development and teardown-rebuilds
- Watch for HOA rules in residential neighborhoods
Raleigh-Durham
- Favorable permitting, but demand is high
- Consider student housing built near UNC or Duke
Asheville
- Mountain terrain can complicate foundation and utilities
- Check county rules on short-term rentals if planning Airbnb
Need help navigating local approvals? Our loan advisors are familiar with North Carolina regulations.
Why work with Park Place Finance?
Park Place Finance is a direct private lender with experience in funding hundreds of construction projects across the U.S.
What sets us apart:
- Fast closings and draws
- Loans up to $6 million
- No tax returns or income verification required
- In-house underwriting and servicing
- Personalized support from experienced advisors
From Wilmington to Winston-Salem, we help North Carolina developers build smart and scale fast.
Build with confidence in NC
Ground up construction in North Carolina is more than viable—it’s thriving.
With the right lender and local insight, your next project can break ground with confidence and finish on time and on budget.
Let Park Place Finance help you get there.
FAQs: Ground up construction in North Carolina
Most lenders require a credit score of 680 or higher, though some private lenders may approve lower.
Timelines vary but most single-family homes take 6 to 12 months from permitting to completion.
Yes, if you have verifiable experience. Otherwise, hiring a licensed contractor is advised.
Most construction loans from private lenders like Park Place Finance close in 7 to 10 business days, depending on how quickly documents and permits are submitted.