Loan Scenario:

American Heritage Lending recently closed a ground-up construction loan for an experienced builder breaking ground on a new detached home in Sevierville, Tennessee. With six verified projects behind them, including three exits in 2026 and multiple completions in prior years, this professional investor brought exactly the track record that makes an ambitious build financeable.

The deal was structured as a purchase with a $70,000 land basis and a $459,350 construction budget against an after-construction value of $910,000. AHL funded a $500,982 loan at 95% loan-to-cost and just over 55% loan-to-ARV, delivered as a 12-month interest-only facility and, notably, a True Zero Point loan. That combination of high leverage against cost and conservative leverage against value gave the builder maximum capital efficiency while keeping the completed asset comfortably positioned for the planned sale.

Sevierville sits at the gateway to the Great Smoky Mountains, one of the most visited destinations in the country, and its blend of year-round tourism and steady in-migration continues to support new residential inventory. For builders delivering quality product in the greater Sevier County corridor, demand from both buyers and short-term-rental operators has kept absorption strong.

If you are a builder looking to fund your next ground-up project on terms that respect your experience, AHL is ready to help. Start your financing in Tennessee and let’s build.

Similar Recently Funded Case Studies: Ground-Up Construction Loan in Sevierville, TN  •  Ground-Up Construction Loan in Penhook, VA  •  DSCR Loan in Gatlinburg, TN

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