Capital Kings LLC

What are construction loan rates right now?

From 8.49% to 12.24%, as of October 2026. A first build with an experienced general contractor is 11.74% on Lower Fees at 745 credit (12.24% at 700) or 9.50% with the Financed Interest Reserve. With 5+ finished builds it is 10.50% on Lower Fees or 8.49% with the reserve. Lower Fees charges 2% origination and the reserve 3%, plus lender fees on both.

Get my real numbers →See every dollar

Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

Rates as of October 2026

Investment build, 745 credit, by finished builds

Lowest rate, 5+ builds

8.49%

First build, Lower Fees11.74%
First build, Financed Interest Reserve9.50%

At a glance

The deal, in pictures

Construction loan rate by credit score

First build, Lower Fees

12.24%11.74%

First build, Interest Reserve

9.50%

5+ builds, Lower Fees

10.50%

5+ builds, Interest Reserve

8.49%

First build, Lower Fees 650 to 739: 12.24% · 740+: 11.74%
First build, Interest Reserve 680+: 9.50%
5+ builds, Lower Fees 650+: 10.50%
5+ builds, Interest Reserve 680+: 8.49%

Interest-only on what has been drawn, before your file is reviewed.

Capital Kings · capitalkings.co · rates as of October 2026

Cash to close: The money you bring to the closing table: down payment plus every closing cost.
Reserves: Months of payments or interest you show in the bank. They stay in your account.
Draws: Rehab or build money released after each phase is finished and inspected.

In short

The short answer, as of October 2026

First build, with a general contractor with 5+ builds: 11.74% on Lower Fees or 9.50% with the Financed Interest Reserve.
1 to 4 finished builds: 10.49% or 9.50%.
5+ finished builds: 10.50% or 8.49%.

Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.

Worked example

Every dollar, line by line

An $80,000 lot, a $320,000 build and a $560,000 finished value, 745 credit, 5+ finished builds. The real term sheets:

Cash to close$60,032

Proof of funds to show$126,932

Where the $60,032 goes

Land down paymentEquity$40,000
Appraisal feeAppraiser$550
Prepaid interestLender$173
Origination and lender feesLender$9,195
Broker feeBroker$3,600
Closing / titleTitle co$4,114
Builder’s risk insurance (estimate)Insurer$2,400

Priced for a builder with 5+ finished builds. Proof of funds adds $48,000 to start the build and $18,900 of interest, money that stays in your account. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

The numbers

Compare the options

Every rate is interest-only and charged on the money that has been drawn. The lower rate costs more up front: the Financed Interest Reserve charges 3% origination and higher lender fees, Lower Fees 2%.

Rates by finished builds

Finished builds	Lower Fees	Financed Interest Reserve
None, with a GC with 5+ builds	11.74%, 2% origination, up to 85% of cost	9.50%, 3% origination, up to 90% of cost
1 to 4	10.49%, 2% origination, up to 85% of cost	9.50%, 3% origination, up to 95% of cost
5 or more	10.50%, 2% origination, up to 90% of cost	8.49%, 3% origination, up to 95% of cost

At 745 credit. The Financed Interest Reserve share of cost includes the reserve. Interest-only, charged on what has been drawn. Investment properties only. Rates as of October 2026.

Every closing cost on one project, 5+ finished builds

	Lower Fees	Financed Interest Reserve
Rate	10.50%	8.49%
Total loan	$360,000	$380,000
Land down payment	$40,000	$20,000
Origination and lender fees	$9,195	$14,890
Broker fee	$3,600	$3,800
Closing / title	$4,114	$4,213
Builder’s risk insurance (estimate)	$2,400	$2,400
Appraisal fee	$550	$550
Prepaid interest	$173	$209
Cash to close	$60,032	$46,062
Monthly interest, fully drawn	$3,150	$2,689
Interest paid from	Your account	The interest reserve

$80,000 lot, $320,000 build, $560,000 finished value, 745 credit, 5+ finished builds. Rates as of October 2026.

Price my deal →Size your build on the construction page Construction loans by state

How it works

Good to know

Construction loans for investors are short-term, interest-only loans. The lender funds part of the lot at closing and releases the build money in draws, and you pay interest only on what has been drawn.

There are two ways to structure the same loan. Lower Fees has the smaller origination and you pay the monthly interest. The Financed Interest Reserve has the lower rate and a bigger loan, and part of the loan makes the interest payments while you build, $16,131 on our example.

Three things move the rate: finished builds (yours, or your contractor’s on a first build), credit, and the structure. On a first build on Lower Fees, credit under 740 moves the rate from 11.74% to 12.24%.

Every rate on this page is what our term sheet quotes before your file is reviewed. Then we compare your build across 400+ lenders and send the best terms before you sign.