Construction Loans Ohio
Up To 100% Construction Financing
Can You Get A Construction Loan In Ohio?
In a word, yes. You can apply for a Construction Loan in Ohio.
However, for your application to be successful, you need to have detailed knowledge of the land that you are hoping to purchase and build on.
More specifically, you need an exact location, together with plans for development.
What You Need To Know About Building In Ohio
There are plenty of reputable construction loan lenders in Ohio, but for your application to get approved, you need to have building plans.
- Most Construction Loans in Ohio offer interest only payments.
- Importantly, you are required to pay back 100% of the loan amount, when the loan terms end.
To pay back the loan in full, you need to have a clearly defined exit strategy. Either you need to sell the development for a healthy profit, or you need to refinance the property based on the revised value of the building once it is completed.
In addition, there other important factors that a lender will consider when assessing a loan application, including:
FICO Score: Typically, there will be a minimum FICO score that the borrower needs to meet in order for the loan to be granted. At the current moment in time, the minimum FICO is 650.
Cost of Project: A reputable lender should be willing to cover a substantial portion of the project cost. This ratio is called Loan To Cost, and it is a quick way to assess how much capital you can access to complete the building project. At this moment in time, New Silver offers up to 90% Loan To Cost (LTC).
Best Construction Loan Lenders In Ohio
1. New Silver
New Silver is a reputable construction loan lender with a proven track record across the US. Each borrower is treated as a valued investing partner, contributing to their exceptionally high repeat borrower rate. New Silver offers industry-leading closing times, rapid loan approvals, and a streamlined online application process, setting a new standard in lending efficiency.
- Interest rates 10.25 – 11.25%
- Instant proof of funds letter
- Credit score 650+
- Interest only payments
2. Lima One
Lima One Capital is a private lender offering investment property loans for various investing strategies. Borrowers can work together on their deals with the in-house team of experts at Lima One, which speeds up the hard money lending process and cuts out any middlemen.
Lima One offers new construction loans for builders who are ready to begin a ground-up project, or a tear-down. Up to 85% LTC is offered, along with 70% LTV. Loans begin at $100,000 and the maximum amount that can be borrowed is $3 million. Lima One also has a Build to Rent loan product which offers longer loan terms.
3. Asset Based Lending
ABL (Asset Based Lending) is one of the prominent construction loan lenders focused on helping small business owners, real estate investors, and commercial contractors finance their business activities. These loans are tailored to each person’s needs and ABL provides hard money construction loans in over 29 states across the US.
ABL’s new construction loans are used for land acquisition and construction or rebuilding of existing property. Previous experience is an essential element when applying for these loans. New construction loans can be used for single family, multi-family, and mixed-use properties.
4. Nationwide Home Loans Group
Nationwide home loans group, another top contender in the list of best construction loan lenders, offers both one-time and two-time close construction loans. The lender has made it to the top of the list based on their loan offerings and they offer up to 100% financing of the construction. Nationwide Home Loans Group provides funding for primary residences, second homes, ADUs and 1-4 unit multi-family properties.
The lender facilitates all parts of the process, from searching for a property to communicating with builders. Nationwide Home Loans Group provide fixed-rate and interest-only terms on their construction loans. The one-time close construction loan requires only one appraisal and no-requalification once the construction is complete.
5. Lending One
LendingOne is a direct lender for real estate investors, with loans that are tailored to each investor’s strategy and is one of the top ranked Construction Loan Lenders in 2023. Lending One offers ground up construction loans which are between 12 and 24 months.
These require interest-only payments for a period of time and are applicable for single-family detached properties, condos, town homes, multi-family properties
Requirements For A Construction Loan In Ohio
- Interest Rate: The interest rate for this financing option falls in the range of 10.25 to 11.25%.
- Origination Fee: An origination fee is applicable, starting from 1.5 - 2% of the loan amount.
- Loan To Cost (LTC): You can secure a loan for up to 90% of the total project cost.
- Construction Financing: This option offers financing of up to 100% of your construction expenses.
- Loan To ARV: You can borrow up to 75% of the property’s estimated value after repairs (ARV).
- Term: The loan term for this option is set at 24 months.
- Minimum Loan Amount: The minimum loan amount you can request is $100,000.
- Maximum Loan Amount: The maximum loan amount available is $5,000,000.
- Minimum FICO: To qualify, you must have a minimum FICO credit score of 650.
- Type of Property: This financing is suitable for various property types, including residential properties with 1-4 units, condos, and townhomes.
How To Complete A Building Project In Ohio
Step 1 – Identify A Piece Of Land That Can Deliver A Positive ROI
First and foremost, you need to identify a piece of land in Ohio that is suitable for ground up construction.
To ensure that the building project will be profitable, you need to be able to accurately estimate how much the building will be worth once the project is completed.
Step 2 – Complete Building Plans & Apply For Building Permit
For your construction loan to be approved, most lenders will require building plans to be submitted during the application. In addition to building plans, you will also need to submit a building permit. Without an official permit, the loan application cannot proceed to closing. This is a key item to attend to.
Step 3 – Select A Construction Loan Lender
After finding the land and sorting out the plans and the permits, the next task is to select a Construction loan lender that can meet your needs as a developer.
If you are a residential developer looking for a simple online approval process together with lightning-fast closing, New Silver Lending could be the right fit.
With that being said, there are numerous lenders to choose from. This article highlights the best Construction loan lenders.
Step 4 – Apply For Your Ohio Construction Loan
The final step is to apply for the loan. If you have followed all the steps outlined above and you meet the minimum credit score requirements, there is a strong likelihood your loan will be approved.
Ohio Real Estate Market Analysis
Over the last 12 months, home prices in Ohio have increased by 4.3%, with an average home value of $241,500. This is $126,211 less than the average home value in the US, which is currently $367,969.
The Median sale to list ratio is 1.000. A sale to list ratio of 1 generally means that the market is relatively neutral. It doesn’t necessarily favor buyers or sellers.
- The percent of sales over list price is 42.2%
- The percent of sales under list price is 40.9%
Very Affordable Housing: Ohio generally offers more affordable housing options compared to many other states in the Midwest and across the country. The cost of living, including housing costs, tends to be lower, making it an attractive option for first-time homebuyers and those looking for more affordable housing.
Limited Profit Potential: One of the primary concerns when developing properties in Ohio is that the market value of the completed development may be limited by the value of comparable properties in the area.
In essence, there is a low ceiling on the post construction value of property developments in Ohio. This may be a red flag for some developers. You can potentially make more money in other states where completed developments have a much higher market value.
Elevated Mortgage Rates: As of June 2025, Ohio’s mortgage rates remain elevated, with the average 30-year fixed-rate mortgage at approximately 6.85%—a slight decrease from earlier peaks but still significantly higher than rates seen in the early 2020s . These sustained high rates have increased borrowing costs, making home ownership less affordable and contributing to a slowdown in the housing market.
Residential Sales Show Mixed Trends: In 2024, Ohio’s housing market experienced a modest rebound. Year-end data indicates that 131,716 homes were sold, marking a 2.1% increase from 2023 . The average sales price rose by 7.3%, reaching $291,062, reflecting continued demand despite affordability concerns.
However, early 2025 data suggests a potential cooling. Home sales during January and February totaled 15,480, a 3.2% decrease compared to the same period in 2024 . Despite this dip in sales volume, the average sales price continued to climb, reaching $284,191 in February—a 6.4% year-over-year increase. This trend indicates that while fewer homes are being sold, prices remain on an upward trajectory, underscoring the persistent demand and limited inventory in the market
Data Sourced From – Zillow.com | Attom Data
Loan Application Process Overview
This short video will walk you through the application process, show you how to get conditionally approved online in under 5 minutes, see your preliminary term sheet and show you how our easy online platform helps you be more successful.
Construction Loans Near You
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Additional Resources
Construction Loan Calculator
Use our Construction Loan Calculator to estimate your monthly payments. Enter the loan amount, interest rate, and the term of the loan to calculate your monthly payment.
Construction Loan Rates
Find out the latest Construction Loan Rates here. This guide explores what rate you are likely to qualify for.
Construction Loan Requirements
First and foremost, you need to know the location of the development and you also need to have building plans and permits.
Construction Loan Down Payment
The typical down payment on a construction loan is between 10% and 20% of the total project cost.
Best Construction Loan Lenders
Some lenders are better than others. This guide reveals the Best Construction Lenders at this moment in time.
How To Get Into Construction
This guide explains out how you can get started in the Construction Industry.
How Much Does Construction Pay
On average construction workers make over $50,000 annualy.This resource explores how much construction pays, on average.
How To Start A Construction Business
This is a step-by-step guide which explains how to start a Construction Business.
Types Of Construction Loans
There are 3 main types of Construction Loan. This guide highlights the differences between them.
Banks That Offer Construction Loans
There are various US banks providing different Construction Loan options for real estate investors.
Construction Loan vs Mortgage
There are a number of differences between a Construction Loan and Mortgage. Each difference is fully explored in this guide.