Ground-Up Construction Loans in Massachusetts
Boston Trust Corp makes ground-up construction loans for spec builds, teardowns, new condo projects, and additions or structural redevelopment under full building permits, across Massachusetts. The people underwriting your loan have built, owned and managed Greater Boston real estate for years, and Chris Anderson has lent on it for 28. We know what a budget should look like, and we know what happens when it doesn't.
We don't broker. We don't sell. We are the money. Every construction loan is funded with our own capital and held on our balance sheet, like every hard money loan we make. Draws come from the same lender that approved the loan. There's no servicer in another state deciding whether your framing is finished.
Who our construction loans are for
-
Spec builders putting up single-family homes or small multifamily for sale.
-
Teardown and rebuild projects, where the land is worth more than the existing structure.
-
Condo developers building new units for sale.
-
Investors adding to or structurally redeveloping a building under full building permits.
-
Brokers with a developer client who needs a lender that understands Massachusetts permitting and construction costs.
Construction loans are business-purpose loans to developers, builders and real estate investors. We don't finance building a home you plan to live in.
How our construction loans work
Loan sizing depends on where the project stands. On raw land, we lend up to 50% loan-to-value. Once the project is permitted, we lend up to 60%. Permits change the risk, so they change the loan. Loan amounts run from $100,000 to $5,000,000.
Closing comes first, then the draws. The initial closing, on the land or the property you're buying, typically closes in 3–10 days. After that, the construction budget is released in inspected draws that follow your build schedule.
The money is released in inspected draws. The construction budget is funded in stages as work is completed. You submit a draw request with the property address, the amount and the work completed. We then schedule an inspection around your project and release the funds. Draw requests can be sent straight to our servicing desk from the Borrower Services section of our website, with no phone tag.
We underwrite the build, not just the borrower. We look at the budget line by line, your team, your timeline and the completed value. We ask the same three questions on every loan: can you repay, can you execute, and will the collateral hold value? On construction loans, "can you execute" carries the most weight. We want to know who's building it and what they've finished before.
Typical construction loan uses
-
New single-family or multifamily construction on a vacant or cleared lot
-
Teardowns, where you buy the house, demolish it and build new
-
Ground-up condo projects
-
Additions and structural redevelopment that need full building permits
Renovating an existing building, including a gut rehab or a condo conversion? A fix and flip loan is built for that. Do you need to close on the land fast, before the construction financing is ready? Ask us about a bridge loan. Planning to hold the finished building as a rental? See investment property loans for the stabilize-and-refinance stage.
Why a direct lender matters on a construction loan
We don't broker. We don't sell. We are the money. Construction loans fail in the middle, not at closing. A draw comes late, an inspector can't be reached, or a lender gets nervous halfway through the job, and then your subs walk off. When the lender is the capital, those decisions stay local and fast.
-
Inspections scheduled around your project. Draws are reviewed by the same people who approved the loan.
-
Lenders who have built. Chris Anderson still owns and manages income property in Massachusetts. He has stood in the permit office and on the job site himself.
-
One decision-maker. We decide in-house, with no committee.
-
Track record. Founded in 2000, Boston Trust Corp is led by Chris Anderson, who has been lending on Massachusetts real estate since 1998. In those 28 years he has funded more than $1 billion in loans secured by real estate, across four market cycles.
From application to closing
-
Apply. Use the one-page application to send the address, the plan and the loan amount. You don't need documents to apply, and we don't pull credit to apply.
-
Talk through the project. You present the budget, timeline and team to a decision-maker. Most borrowers get a preliminary answer on the first call.
-
Written terms within 24 hours. You get a formal term sheet that spells out the loan amount and how the draws work.
-
Diligence. We review title, valuation and public records, along with your plans, budget and timeline.
-
Initial closing. We work to your closing date, and funds wire at the table. The initial closing on the land or purchase typically takes 3–10 days.
-
Draws through completion. You request draws as work is done, and we inspect and release funds as each stage is completed, following your build schedule.
Before you apply, run the project through the Construction model in our free Deal Analyzer. It compares your all-in cost with the completed value, the same way our underwriting desk does.
Construction loan terms at a glance
TermBoston Trust Corp construction loans
Loan-to-valueRaw land up to 50% · Permitted up to 60%
Loan size$100,000 – $5,000,000
CollateralSpec builds, teardowns, new condo projects, permitted additions and structural redevelopment
Typical useNew construction, additions & structural redevelopment
DrawsInspected draws that follow your build schedule
GeographyMassachusetts
Loan termSet to your build schedule and exit
Interest rateQuoted per deal
Origination points / fees (including draw and inspection fees)Quoted per deal
Term sheetIn writing, within 24 hours
ClosingInitial closing on the land or purchase: close in 3–10 days. Draws then follow the build schedule
All financing is subject to underwriting and credit approval. Terms are set individually for each transaction. Nothing on this page is a commitment to lend.
Construction loan FAQ
How much will you lend on a construction project? Up to 50% loan-to-value on raw land and up to 60% once the project is permitted, subject to underwriting. Loans range from $100,000 to $5,000,000.
How fast can a construction loan close? The initial closing, on the land or the property you're buying, typically closes in 3–10 days. Construction funds are then released in inspected draws that follow your build schedule.
How do construction draws work? You submit a draw request with the amount and the work completed. We schedule an inspection around your project and release the funds. Borrowers can send draw requests directly from our website.
Do you finance teardowns? Yes. Teardowns are one of the project types we lend on, along with spec builds, new condo projects, and additions or structural redevelopment under full building permits.
Do I need permits before I apply? No. You can apply at any stage. Permitted projects qualify for higher leverage (up to 60%) than raw land (up to 50%).
Do you lend outside Boston? Yes. We lend on construction projects across Massachusetts.
Get terms on your deal
Send the address and the story. A decision-maker reads every one. Written terms within 24 hours.
Apply for a construction loan · Call 617-752-7000
Boston Trust Corp · 100 Hallet Street, Dorchester, MA 02124
Other loan programs
Hard Money Loans · Bridge Loans · Fix and Flip Loans · Investment Property Loans · Deal Analyzer