Refinance stalled or in-progress construction projects. Rescue your build from another lender with 100% remaining construction financing and up to 80% LTV.
A mid-construction refinance allows real estate investors and builders to refinance a construction project that is already underway, whether it is progressing on schedule with a lender who is no longer a fit, or stalled due to financing issues, lender disputes, or capital shortfalls. This product rescues projects that are too far along to walk away from but cannot be completed under the current lending arrangement.
Construction projects stall for many reasons. The original lender may have imposed unexpected conditions, changed draw policies, or even gone out of business. The builder may have experienced cost overruns that exceed the original loan budget. Or the project may have been delayed by permitting issues, supply chain disruptions, or contractor problems, causing the original loan to mature before the build is complete.
Whatever the cause, a mid-construction refinance through LendingLeaders provides fresh capital to pay off the existing construction lender and fund the remaining work to completion. With up to 80% LTV, 100% financing on remaining construction costs, and terms of 12 to 24 months, our program gives builders the runway they need to finish what they started.
| Term | Details |
|---|---|
| Loan Amount | $150,000 - $5,000,000 |
| LTV | Up to 80% of current or projected completed value |
| Remaining Construction | Up to 100% of remaining build costs financed |
| Interest Rate | Competitive, based on project stage and risk profile |
| Loan Term | 12 - 24 months |
| Minimum FICO | 660 |
| Property Status | Must be weathertight with systems ready |
| Mechanic's Liens | None permitted at closing |
| Draw Schedule | Milestone-based, aligned with remaining work |
| Interest Reserve | Available (financed into the loan) |
| Property Types | Single-family, townhome, 2-4 unit, small multi-family |
| Geographic Coverage | 46+ states |
Mid-construction refinancing requires the project to meet specific minimum completion criteria to demonstrate that it is viable and can be completed within the new loan term:
Property must be weathertight: The structure must have a completed roof, exterior walls, windows, and doors in place. The building envelope must protect the interior from weather.
Systems ready: Rough-in for plumbing, electrical, and HVAC should be complete or substantially complete. The project should be at a stage where finishing trades (drywall, flooring, fixtures, paint) are the primary remaining work.
No mechanic's liens: There cannot be any outstanding mechanic's liens against the property at closing. All previous contractors and suppliers must be paid or have lien waivers on file. This protects both you and the new lender from title complications.
Clear title: The property must have clean title, free of judgments, disputed ownership, or other encumbrances beyond the existing construction loan being refinanced.
Remaining budget and timeline: You must provide a detailed budget for the remaining work and a realistic completion timeline. The project must be completable within the 12 to 24 month loan term.
Mid-construction refinancing serves builders and investors in these situations:
Contact LendingLeaders and provide a complete picture of your project: property address, current stage of construction, remaining work, the existing lender situation, total costs to date, and projected costs to complete. Include photos of the current construction status and any existing plans, permits, and budgets.
Apply at LendingLeaders.com/apply with your project documentation. Key materials include: architectural plans, current and projected budgets, photos of current construction status, existing loan payoff amount, contractor bids for remaining work, permits, and your builder resume.
We conduct a thorough site inspection to verify the current stage of construction and assess the quality of work completed. An appraiser evaluates the property's projected value upon completion. The inspection confirms the project is weathertight, systems are roughed in, and no significant code or structural issues exist.
Underwriting evaluates the project's viability, including the remaining budget, completion timeline, your track record as a builder, and the projected completed value. We also verify that there are no outstanding mechanic's liens. The existing construction lender's payoff amount is confirmed, and the total loan is structured to cover the payoff plus remaining construction costs.
At closing, the existing construction lender is paid off and the remaining construction budget is placed in a draw reserve. A new draw schedule is established based on remaining milestones. Construction resumes with fresh capital and a lender who is aligned with your completion goals.
Once construction is complete, execute your exit strategy: sell the property, refinance into permanent DSCR financing, or hold as a rental. The mid-construction loan is paid off, and you move on to your next project.
Greg was building a 3,200 square foot single-family spec home. His construction lender funded the first three draws without issue, but at the framing inspection, the lender disputed the quality of work and froze the remaining draws. Greg's contractor was a licensed professional with 15 years of experience, and the municipal inspector had approved every phase. But the lender would not budge, and Greg's project sat idle for two months while he tried to resolve the dispute.
LendingLeaders conducted an independent inspection, confirmed the work met code and quality standards, and provided a mid-construction refinance to pay off the existing lender ($310,000) and fund the remaining $185,000 in construction costs. Total loan: $495,000 against a projected completed value of $680,000 (73% LTV). Greg completed the home in 5 months and sold it for $665,000.
Sandra started building a duplex 18 months ago with a 12-month construction loan. Supply chain delays added 4 months to her timeline, and her loan matured with the project at roughly 75% completion. Her lender offered a 6-month extension but at a 3-point fee and a 2% rate increase, which would add over $20,000 to her costs.
LendingLeaders refinanced Sandra's existing $380,000 balance and funded the remaining $95,000 in construction costs, all at a competitive rate with no extension penalty. Total loan: $475,000 against a projected completed value of $620,000 (77% LTV). Sandra completed the duplex in 4 months, leased both units, and refinanced into a 30-year DSCR loan. The mid-construction refinance saved her over $20,000 compared to her original lender's extension terms.
Mark and Diane are building a custom spec home with an original budget of $420,000 (including the $90,000 lot). Cost overruns from material price increases and design changes pushed the total project cost to $510,000. Their original construction loan of $340,000 was fully drawn, and they needed an additional $90,000 to finish the project. Their original lender would not increase the loan amount.
LendingLeaders provided a mid-construction refinance for $440,000, paying off the existing $340,000 loan and funding the remaining $100,000 in construction costs (including a $10,000 contingency). The projected completed value was $640,000, putting the LTV at 69%. Mark and Diane completed the home, listed it at $635,000, and sold it within 60 days.
Recognizing the warning signs early can save your project. Consider a mid-construction refinance if you are experiencing any of these situations:
The earlier you act, the more options you have. Do not wait until your project has been sitting idle for months before seeking a solution.
Weathertight means the building envelope is substantially complete: the roof is installed, exterior walls are sheathed and wrapped (or finished), and windows and doors are in place. The interior is protected from rain, wind, and weather. A project that is still at the foundation or framing stage without a roof would not qualify for a mid-construction refinance.
Mechanic's liens indicate that contractors or suppliers have not been paid for work or materials already provided. This creates legal claims against the property that take priority over mortgage liens in many states. All mechanic's lien issues must be resolved before a new lender can provide clear title insurance. If you have outstanding lien claims, they must be satisfied or waived before closing.
Yes. Many builders seeking a mid-construction refinance are also changing contractors. You will need to provide bids from your new contractor for the remaining work. The new contractor's qualifications and bid will be evaluated as part of underwriting.
If existing work needs to be torn out and redone, the cost of rework is included in the remaining construction budget. The appraiser and inspector will note any deficiencies, and the budget must account for corrections. This increases total project cost but does not disqualify the project as long as the LTV remains within program limits.
Mid-construction refinances typically take 3 to 4 weeks from application to closing. The site inspection, appraisal, and title work are the primary timeline drivers. Having your documentation organized and contractor bids ready will accelerate the process.
Yes. If you acquired a partially completed property (from a foreclosure, builder bailout, or private sale), you can use a mid-construction refinance to fund the remaining work, provided the property meets the weathertight and systems-ready requirements.
While the experience requirements are evaluated on a case-by-case basis, having at least one completed construction or major renovation project in the past 36 months significantly strengthens your application. Your builder resume, contractor qualifications, and the quality of work already completed are all considered.
A stalled construction project is dead capital. Every month it sits unfinished, you are losing money on interest, deterioration, and missed opportunity. A mid-construction refinance from LendingLeaders gives you fresh capital and a fresh start to bring your project across the finish line.
Apply Now — Share your project details, current construction status, and what you need to finish the build. We will evaluate your project and provide a term sheet within 48 hours. Stop waiting for a lender who is not working for you.