Capital Kings LLC · Broker, not a lender

New Construction Loans
in Michigan

Lot plus vertical construction on one loan for Michigan spec builds, single family through small multifamily. First-time builders are welcome with an experienced GC on the job. It’s interest-only for 12-18 months, and draw money comes out as each stage passes inspection. Building in Detroit, Grand Rapids, Lansing and statewide.

By Micah FosterProgram terms verified October 2026

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

LansingState capitalThe Great Lakes StateState nickname

New Construction Loans in Michigan at a glance

These are the terms on the programs we're quoting right now. Your actual terms depend on the property, your credit and your experience, and the term sheet shows the real numbers before you commit.

85%

Of total cost, first build

85%

Of total cost after one build

65-75%

Of completed value

8.49%

Rates from (5+ builds)

650+

Minimum credit (680+ with an interest reserve)

12-18 mo

Interest-only term

Programs and pricing

Michigan new construction terms as of October 2026

Same numbers the term sheet prints after you apply. Capital Kings LLC shops your Michigan scenario across 400+ lenders and places it with the one that fits. Read the full new construction guide for how the program works deal by deal.

Ground-up single family to small multifamily, 12-18 month interest-only terms, lot and vertical funded together. First-time builders qualify at 650+ credit on Lower Fees (680+ on the Financed Interest Reserve) with a general contractor who has 5+ completed builds. Pick the structure that fits your cash:

A spec build in Detroit, priced on the term sheet

$65,000 lot$135,000 build$265,000 completed value720 credit

As of October 2026	First build with a GCLower Fees	After one completed buildFinanced Interest Reserve
Loan to cost (LTC)	85%	95% with the interest reserve
Completed value (LTARV)	65%	75%
Rate	12.24%	9.50%
Points	2% + $1,995 lender fees	3% + $3,490 lender fees
Term	12-18 mo, interest-only	12-18 mo, interest-only
Construction draws	Draws; interest paid monthly	Draws; interest from the reserve
Minimum credit	650+	680+
Cash needed on the example	$42,107 to start, $72,761 proof of funds	$35,485 to start, $35,485 proof of funds

First build with a GC, Lower Fees

12.24% · 2% origination · 650+ credit

Lender $170,000You $30,000

Loan: $170,000
Lot advance at closing: $35,000
Build budget paid in draws: $135,000
Your lot down payment: $30,000
Origination, broker and lender fees: $7,395
Title, insurance, appraisal, prepaid interest: $4,712
Cash to close: $42,107
Proof of funds the lender checks: $72,761

After one completed build, Financed Interest Reserve

9.50% · 3% origination · 680+ credit

Lender $180,500You $19,500

Loan, interest reserve included: $189,501
Lot advance at closing: $45,500
Build budget paid in draws: $135,000
Interest reserve in the loan: $9,001
Your lot down payment: $19,500
Origination, broker and lender fees: $11,175
Title, insurance, appraisal, prepaid interest: $4,810
Cash to close: $35,485
Proof of funds the lender checks: $35,485

Capital Kings new construction term sheet for a Michigan spec build: $65,000 lot, $135,000 build, $42,107 cash to close — The term sheet for the first build: **$65,000** lot, **$135,000** build, 720 credit, **$42,107** cash to close on Lower Fees.

85% of cost is not 15% cash. On the first build the loan covers $170,000 of the $200,000 project, and you still bring $42,107 to closing (the lot down payment plus fees, title, insurance, appraisal and prepaid interest). Before it closes, the lender checks $72,761 in proof of funds: your cash to close plus a build cushion and about six months of interest. Draws are released after each stage is inspected, so plan to carry the first stage. Figures from the term sheet engine as of October 2026; your sheet prints your real numbers.

Lower Fees or a Financed Interest Reserve, side by side

Lower Fees

Lowest fees. You pay the interest monthly from the first draw.

Financed Interest Reserve

Up to 90% of cost with the reserve. It carries your payments while you build, for higher fees. Needs a GC with 5+ completed builds.

Max loan to cost

85% of total cost

90% of total cost with the interest reserve

Completed-value cap

65% of completed value

70% of completed value

Lot advance

70% of lot cost

70% of lot cost (60% until permits are in)

Rate

12.24%

9.50%

Origination and lender fees

2% origination + $1,995 lender fees

3% origination + $3,490 lender fees

Interest while you build

Paid monthly from the first draw

6 months of interest financed in the loan

Minimum credit

650+

680+

Cash to start on the example

$42,107$72,761 proof of funds

$44,203$44,203 proof of funds

Priced on the term sheet for the $65,000 lot, $135,000 build and $265,000 completed value example at 720 credit, as of October 2026. More leverage costs more: the Financed Interest Reserve carries higher origination plus underwriting and processing fees, so compare the cash to start, not just the rate. Both structures also carry our 1% broker fee ($2,000 minimum).

Every tier, both structures

Lower Fees. About 2 points and no reserve in the loan; you pay the interest monthly from the first draw.

Experience	Max loan	Completed-value cap	Lot advance	Rate	Origination
GC-backed first build	85% of total cost	65% of completed value	70% of lot cost	11.74%	2%
1-4 builds	85% of total cost	70% of completed value	75% of lot cost	10.49%	2%
5+ builds	90% of total cost	75% of completed value	80% of lot cost	10.50%	2%

Financed Interest Reserve. Your first months of interest are financed as part of the loan rather than paid out of pocket: the loan carries an interest reserve of six months of fully drawn interest, so your payments are covered while you build, up to 95% of cost with the reserve counted. $1,995 underwriting and $1,495 processing on top of origination, and 60% of the lot until permits are in. This structure needs 680+ credit and liquid funds of about 10% of the build budget plus fees.

Experience	Max loan, reserve included	Completed-value cap	Lot advance	Rate	Origination
GC-backed first build	90% of total cost	70% of completed value	70% of lot cost	9.50%	3%
1-4 builds	95% of total cost	75% of completed value	70% of lot cost	9.50%	3%
5+ builds	95% of total cost	75% of completed value	75% of lot cost	8.49%	3%

Both structures also carry our 1% broker fee ($2,000 minimum), itemized on the term sheet with every lender fee.

Finished one build in your own LLC? See 95% construction loans with a financed interest reserve: about 90% of the lot and build in cash plus a built-in interest reserve, at 9.50%.

Who it is for

Michigan investors we fund with new construction loans

First-time builders

You don’t need a finished build. You need a GC who has them. Bring that GC, a budget and your plans, and a first project can get 85% of cost. Being your own GC usually waits until you’ve finished one.

Infill and spec developers

Tear-down and rebuild lots in Michigan metros where the completed value supports the loan.

Lot owners

Own the lot already? Its value counts as your equity, which can cover most or all of the down payment.

Small multifamily

Duplex through fourplex ground-up on the same program as single family.

What we need from you

Plans and permits (or permit-ready status)
Line-item construction budget from your GC
GC license and references
Lot purchase contract or deed if owned
Two months of bank statements
LLC documents

How it works

From application to funding in Michigan

1
Send the project
Lot cost, build budget, completed value, your credit range and how many builds you have finished.
2
Size the loan
The lower of the cost cap and the completed-value cap sets the loan. The term sheet shows lot advance, construction holdback and cash to close.
3
Close on the lot
Lot funds at closing along with soft costs. The construction budget sits in a holdback.
4
Draw as you build
Foundation, framing, mechanicals, finish: each stage is inspected and the draw is wired, usually within a few days.

Where we lend

Michigan, city by city

The Michigan markets we fund most. Not on the map? We broker every county in the state, so send the deal and we place it.

Ctrl + scroll or click a crowded spot to zoom, drag to movePinch or tap a crowded spot to zoom, drag to move

Questions, worked out

The math on common questions

One question per page, answered with a worked example and the real term sheet.

How much down for new construction with no experience? →How do draws work on a hard money construction loan? →Can I buy the lot and build with one construction loan? →Can I be my own builder on a construction loan? →What are construction loan rates right now? →

Common Questions

Michigan Lending FAQ

Do you finance new construction in Michigan for a first-time builder?

Yes, as long as a general contractor with 5+ completed builds builds it. A first build in Michigan comes in at 11.74% with 85% of total project cost financed, capped at 65% of completed value, 650+ credit. After one completed build you have two options: Lower Fees stays at 85% of cost with the rate dropping to 10.49% at 2% origination, or the Financed Interest Reserve goes to about 90% of the lot and build in cash (95% with the interest reserve included) at 9.50%, with 3% origination plus lender fees. 5+ builds get 75% of completed value at 10.50% on Lower Fees, or from 8.49% with the reserve. A GC-backed first build can also take the Financed Interest Reserve at 9.50% with 680+ credit. Both structures add our 1% broker fee ($2,000 minimum).

How much cash do I need to build a spec house in Michigan?

On a $65,000 lot with a $135,000 build and a $265,000 completed value at 720 credit, a first build with a GC on Lower Fees borrows $170,000 at 12.24% and needs about $42,107 to start ($30,000 lot down payment plus closing costs), with $72,761 in proof of funds. After one completed build, the Financed Interest Reserve borrows $189,501 at 9.50% with the reserve included and needs about $35,485 to start, $35,485 proof of funds. Figures from the term sheet engine as of October 2026.

How much of the project cost will the loan cover in Michigan?

85% of total cost (lot plus build plus soft costs) on a first build and after one completed build, 90% at 5+ builds on Lower Fees, or up to 95% of total cost with the interest reserve financed into the loan after one completed build. The loan is also capped at 65% to 75% of the completed appraised value depending on experience, and the lower cap wins.

What if I already own the lot?

Your equity in the lot counts toward the down payment. On many Michigan builds a paid-off lot covers the entire cash requirement except closing costs and the first draw.

What are Michigan construction loan rates?

As of October 2026: 11.74% for gc-backed first build, 10.49% for 1-4 builds, 10.50% for 5+ builds, interest-only, with 2% origination plus our 1% broker fee ($2,000 minimum). Interest is charged on drawn funds with most lenders, so early months cost less. With a financed interest reserve, which makes the payments while you build: 9.50% for gc-backed first build, 9.50% for 1-4 builds, 8.49% for 5+ builds, with 3% origination plus lender fees and the same broker fee, at 680+ credit.

How long is the loan and how fast does it close?

12-18 months interest-only, extensions available for a fee. Plan on 21-30 days to close in Michigan once plans, budget and the GC package are in, since the appraiser has to value the finished home from your plans.

Is Capital Kings a direct construction lender in Michigan?

No. Capital Kings LLC is a broker. We match your Michigan build with the construction lenders in our network that fit your experience tier and price it on one term sheet.

Other Michigan loan programs

Fix and Flip Loans in Michigan →DSCR Loans in Michigan →All Michigan programs →

Learn More

Michigan Investor Resources

How the loans are structured, what lenders check, and how to compare offers on a Michigan deal.

Adjacent Markets

Also lending in

Ohio →Indiana →Wisconsin →All 38 states →

Founder & CEO

Micah Foster

Micah specializes in Non-QM and hard money lending for real estate investors across 38 states. Based in Texas, he founded Capital Kings to give investors a true broker who shops the market on their behalf instead of pitching one lender's product.

Connect With Micah →

Ready to fund your Michigan deal?

Submit your scenario in about 5 minutes. We shop our 400+ lender network and send back a term sheet on your actual deal.

Start Application →Get a Pre-Approval Letter Calculator

Capital Kings LLC is a non-QM mortgage brokerage. We are not a direct lender. We shop your scenario across a network of state-licensed direct lenders to find the best fit. Loans in Michigan are originated by partner lenders licensed to lend in Michigan. All loans subject to underwriting approval. Rates, terms, and program availability vary by lender and may change without notice. Hard money and DSCR loans are secured by real estate. Not for primary residences.

New Construction Loansin Michigan