How much down for new construction with no experience?

The short answer, as of October 2026

• Lower Fees: the loan is 85% of the lot plus the build. You bring $60,000 on the lot and $19,257 of closing costs.
• Financed Interest Reserve: $24,000 on the lot and $25,173 of closing costs at closing, then $33,100 of the build, because the loan carries the interest payments.
• Proof of funds: $147,215 on Lower Fees, $82,273 with the reserve.
• No finished builds needed, as long as your general contractor has 5+.

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.

Every dollar, line by line

An $80,000 lot, a $320,000 build and a $560,000 finished value, 745 credit, no completed builds. The real term sheet on both structures:

Lower FeesFinanced Interest Reserve

Open the full term sheet →

Cash to close$79,257

Proof of funds to show$147,215

Where the $79,257 goes

• Land down paymentEquity$60,000
• Appraisal feeAppraiser$550
• Prepaid interestLender$96
• Origination and lender feesLender$8,795
• Broker feeBroker$3,400
• Closing / titleTitle co$4,016
• Builder’s risk insurance (estimate)Insurer$2,400

Proof of funds adds $48,000 to start the build and $19,958 of interest, money that stays in your account until the work uses it. 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.

Compare the options

Lower Fees has the lower origination and funds the whole build. The Financed Interest Reserve has the lower rate, asks for less cash at closing and makes the payments while you build, but leaves part of the build to you.

Your first build, two ways

$80,000 lot, $320,000 build, $560,000 finished value, 745 credit, no completed builds, a general contractor with 5+ finished builds. "Your cash in the deal" is cash to close plus any part of the build the loan leaves to you. Proof of funds is cash you show in the bank; it stays in your account. Rates as of October 2026.

After one finished build

The same build once you have one finished project. Lower Fees drops to 10.49%; the Financed Interest Reserve stays at 9.50% and funds more of the build. Rates as of October 2026.

Where the numbers come from

On a first build the loan is the smallest of 85% of the lot plus the build, 65% of the finished appraisal, and the lot advance plus the budget. Here it is $340,000: $20,000 toward the lot at closing and the whole $320,000 build in draws. The rest of the lot, $60,000, is your down payment.

Closing costs on Lower Fees are $19,257: $6,800 of origination, lender fees, title, builder’s risk insurance, the appraisal, prepaid interest and our 1% broker fee. Interest is charged only on what has been drawn, $196 a month at the start and $3,326 once the build is fully drawn.

The Financed Interest Reserve lends more ($360,000, 90% of cost with the reserve included) at 9.50%, and $17,100 of it makes the interest payments while you build. It funds less of the build in cash, so you cover $33,100 of the build yourself. Your cash in the deal is $82,273 against $79,257 on Lower Fees.

After one finished build the Lower Fees rate drops to 10.49%. The Financed Interest Reserve stays at 9.50% and funds more of the build, leaving $14,050 to you instead of $33,100. The credit floor is 650.

Four things to check

• Bring in an experienced GC.A first build needs a general contractor with 5+ finished builds. Licensed contractors get credit for builds they managed with about half the lenders we work with.
• Run the finished value before you buy the lot.The loan is capped at 65% of the finished appraisal on a first build.
• Budget the cushion.Proof of funds on Lower Fees is $147,215: cash to close plus $48,000 to start the build and $19,958 of interest.
• Itemize the budget.Draws are released line by line after inspection.

Straight answers