Recently Funded Ground-Up Construction Loan In Memphis, Tennessee.

Loan Scenario:

This ground-up construction project supports a new single-unit home in Memphis, Tennessee. Specifically, the borrower is refinancing an existing lot through a no cash-out structure. The as-is land value sits at $12,000, while the construction budget totals $148,950. American Heritage Lending provided $135,100 in financing. As a result, the loan carries a Loan-to-Cost (LTC) of 88.04% and a Loan-to-After Construction Value (LTARV) of 70.00%. Once finished, the home is expected to reach an After Construction Value of $193,000.

Notably, AHL structured this as a True Zero Point Loan. So the professional builder accessed high-leverage capital without paying upfront points. Also, the loan runs as a 12-month interest-only facility. This gives the borrower room to focus on the build rather than early principal payments.

The scope covers a full ground-up build. First, the project starts with plans, permits, and site prep. Then the structural phase brings foundation, roofing, and framing. Next come the core systems, including electrical, HVAC, plumbing, and insulation. From there, exterior work adds siding and brick, concrete, doors and windows, fencing, and landscaping. Finally, interior finishes complete the home, including drywall, flooring, kitchen cabinets and counters, and full bathroom build-outs. A contingency reserve also sits in the budget to keep the build on track.

Memphis continues to draw steady buyer demand across its affordable micro-markets. Also, supply stays tight while new homes meet consistent interest. As a result, well-built new construction fits the local market well.

Overall, this deal shows how AHL backs professional builders with practical, high-leverage financing. Specifically, the True Zero Point Loan and interest-only term keep upfront costs low. As a result, the builder moves from lot to finished home with a clear path forward.