Luxury construction 100% LTC eligibility is the qualification matrix for ground-up and teardown specs targeting $900,000 to $2.5 million as-completed on investor-owned lots. Jaken Finance Group offers up to 100% loan-to-cost on qualified files — always the lower of cost and 75% LTARV, priced at 8.99%–13.5% interest-only.
This is not a guarantee letter. Every file is collateral-first: we underwrite the property, budget, and exit plan — not W-2 income. Use the matrix below before land close.
National hub: luxury new construction loans · Apply: Newbuild · 2026 planning data: luxury construction market data · Bank comparison: luxury spec vs construction-to-perm.
Core parameters (2026)
| Parameter | Qualified luxury construction |
|---|---|
| Product | Luxury New Construction Loan |
| Rate | 8.99%–13.5% interest-only |
| LTC | Up to 100% LTC on qualified files up to $2.5M all-in |
| LTARV cap | 75% of as-completed value |
| Binding rule | Fund the lower of LTC advance and 75% LTARV |
| Term | 12–18 months |
| Close | 10–14 business days complete file |
| Occupancy | Investment only |
Eligibility matrix
Sponsor experience
| Factor | Strong file | Weak file |
|---|---|---|
| Prior vertical | 2+ luxury or upper-tier specs completed in last 36 months | First ground-up with flip-only history |
| Same metro | Comps and GC relationships in submarket | Out-of-state sponsor, no local GC |
| Track record docs | Before/after photos, HUD-1 or closing statements, reference GC | Spreadsheet only |
| Liquidity | Reserve beyond interest carry + cost overrun | Thin post-close balance |
| Entity | LLC holding title; clean background | Occupancy misrepresentation |
100% LTC on luxury vertical typically requires proven vertical or a strong partner with documented completions. Flip track record alone without vertical photos is insufficient for $1.3M+ advance approval.
Comps and as-completed value
| Requirement | Detail |
|---|---|
| Comp fence | Same submarket — ISD, flood zone, deed district, hillside vs slab |
| Recency | Sold comps within 6–9 months where volume allows |
| Adjustments | Support finish tier, sf, pool, view, lot size |
| New construction premium | Do not import production tract comps on custom lot |
| Appraisal | Third-party as-completed with plans; we do not use bank primary appraisal on investor spec |
A Paradise Valley file with Scottsdale tract comps fails. A Naples Flood V file with inland Golden Gate comps fails. Match the buyer who will write the jumbo check.
Budget and contingency
| Line | Requirement |
|---|---|
| Vertical budget | Itemized hard costs aligned to plans |
| Soft costs | Architecture, engineering, permits, impact fees |
| Contingency | 10%–15% on luxury vertical — 12% midpoint planning |
| Site work | Hillside retaining, coastal pile, flood elevation — line-item, not lump |
| GC contract | Fixed-price or GMP with draw schedule matching milestones |
| Change orders | Sponsor liquidity or contingency absorbs — not silent LTC creep |
Budgets without 10% contingency on $1M+ vertical are declined or leverage is reduced.
Interest reserve
| Scenario | Reserve planning |
|---|---|
| 14-month vertical, 90-day DOM | IO on average drawn balance × 17 months |
| 18-month hillside / coastal | Add 4 months IO buffer |
| List before CO (rare) | Bridge discussion — not standard construction reserve |
| Example | $1.0M avg drawn × 11% × 16/12 ≈ $147,000 |
Reserve can be impounded at close or verified liquid — file must show carry without last-draw dependency.
$2.5M all-in cap
| All-in | Typical outcome |
|---|---|
| ≤ $2.5M | Eligible for up to 100% LTC if qualified |
| > $2.5M | Case-by-case; leverage steps down |
| Land-heavy | High land share reduces effective LTC tolerance |
All-in includes land, demo, vertical, soft, contingency, and financed carry if rolled into cost.
75% LTARV bind — always
| All-in | As-completed | 75% LTARV | 100% LTC | Advance |
|---|---|---|---|---|
| $1,200,000 | $1,650,000 | $1,237,500 | $1,200,000 | $1,200,000 |
| $1,550,000 | $1,850,000 | $1,387,500 | $1,550,000 | $1,387,500 |
| $1,680,000 | $1,950,000 | $1,462,500 | $1,680,000 | $1,462,500 |
| $1,900,000 | $2,100,000 | $1,575,000 | $1,900,000 | $1,575,000 |
Row three shows LTARV binding at 87% LTC effective — not 100%. Row four fails 100% LTC math unless cost drops or ARV support rises.
Minimum ~22% gross margin (as-completed minus all-in, divided by all-in) is a practical planning floor for luxury spec at 75% LTARV bind.
Milestone draws (typical)
| Milestone | Share of advance |
|---|---|
| Land / demo / utilities | 20%–25% |
| Foundation / stem wall | 15%–20% |
| Framing / dry-in | 20%–25% |
| MEP rough | 15%–18% |
| Drywall / exterior | 12%–15% |
| Finish / CO | Balance |
Hold foundation draw until utility will-serve or capacity path is documented — same discipline as Austin Water or Naples flood certificate gates.
What we pass
- 100% LTC on $1.8M O-O spec with 6-month reserve on 18-month build
- Plans without submarket comp fence
- 15% contingency on $400/sf hillside with no geotechnical line
- Sponsor who conflates construction-to-perm primary occupancy with investor spec
- As-completed pro forma above $2.5M with production tract comps
What strengthens approval
- Designer-signed max envelope (compatibility, deed restriction, or hillside pad)
- Submarket sold comp map in capital packet
- GC license, insurance, and 2+ luxury vertical references
- 12-month draw schedule with inspection release protocol
- DOM plan with luxury bridge trigger at day 90
File checklist
- Plans, elevations, specs
- Budget with 10%–15% contingency
- GC/GMP contract and draw schedule
- As-completed appraisal or approved comp support
- Builder’s risk through CO
- Interest reserve calculation
- Entity docs and sponsor track record
- Utility / flood / entitlement status letter where applicable
Related guides
- Luxury construction market data 2026
- Luxury spec vs bank construction-to-perm
- Jumbo hard money vs bank jumbo
- Mid-construction refinance
Draw inspection gates — what releases the next advance
Milestone percentages in the matrix above are planning bands. The gate documentation is what actually releases cash. Jaken Finance Group construction draws follow a third-party inspection protocol aligned to your GC schedule.
| Milestone | Documents required before release | Common delay |
|---|---|---|
| Land / demo | Clear title, demo permit close, utility cap photos | Missed asbestos abatement on pre-1978 tear-down |
| Foundation | Geotech sign-off, footing inspection pass, will-serve letter | Rock or flood engineering not on file |
| Framing / dry-in | Structural inspection, roof dry-in photos, window install | Impact glass back-order on coastal files |
| MEP rough | Rough plumbing/electrical sign-off, HVAC placement | Custom window lead times pushing dry-in |
| Finish | Drywall complete, exterior paint, cabinet install progress | Deed committee rejection mid-vertical |
| CO / final | Certificate of occupancy, final inspection, lien waivers | Elevation certificate pending on Flood V |
Hold foundation until utility capacity is documented — the same discipline Austin Water and Collier flood engineering require. A sponsor who skips the gate and self-funds payroll while waiting for inspection loses leverage negotiation room on extensions.
Insurance requirements on 100% LTC files
Full leverage does not waive insurance discipline. Minimum file standards:
| Coverage | Requirement | Typical gap that declines leverage |
|---|---|---|
| Builder’s risk | Named insured includes lender; through CO | Sponsor relies on GC policy that excludes lender |
| General liability | GC $1M+ per occurrence | Subcontractor without COI on file |
| Flood (coastal) | Quote or binder before first draw on V-zone | Slab design without elevation path |
| Wind / named storm | Coastal Florida and Gulf-adjacent Texas | Missing product approval submittals |
| Umbrella | Sponsor entity or GC on files above $1.5M vertical | Thin GC balance sheet without umbrella backstop |
Insurance premiums belong in soft costs or buyer economics — not contingency. A $22K/year flood quote on a Naples finished home affects jumbo buyer DTI the same way a rate bump does.
Comp mistakes that kill 100% LTC approval
These fail before the advance math even runs:
- Wrong submarket fence — Chandler production on Paradise Valley hillside ARV.
- Stale solds — comps older than 9 months in a rising-DOM corridor without adjustment narrative.
- Active listing imports — asking prices on unsold neighbor specs treated as sold support.
- Cross-flood-zone blend — inland Collier solds on Port Royal V-zone scrape.
- Finish tier mismatch — production tract interior spec on a custom-lot $400/sf vertical budget.
- Land-only comp confusion — lot sale treated as finished-value support without vertical proof.
Each mistake inflates as-completed value, which temporarily makes 100% LTC look possible until third-party review cuts LTARV and the file binds at 78% LTC effective.
Worked example — thin margin fail at 100% LTC ask
| Item | Value |
|---|---|
| All-in cost | $1,680,000 |
| As-completed (sponsor pro forma) | $1,950,000 |
| 75% LTARV | $1,462,500 |
| 100% LTC ask | $1,680,000 |
| Binding advance | $1,462,500 (87% LTC effective) |
| Sponsor cash needed at close | ~$217,500 plus reserve |
If third-party review supports only $1,820,000 as-completed, 75% LTARV drops to $1,365,000 — sponsor needs ~$315,000 at close plus $170K+ interest reserve. That is why ~22% gross margin is a practical floor, not a marketing number.
Seasonal listing reserve — size IO beyond vertical
| CO timing | Base DOM assumption | Reserve adder | Total IO months to model |
|---|---|---|---|
| Apr CO Arizona / Vegas | 90 days | 0 | Vertical + 3 months |
| Jul CO desert | 90 days | +45 days heat | Vertical + 4.5 months |
| Aug CO Naples coastal | 110 days | +30 days storm | Vertical + 4.5 months |
| Dec CO any premium | 90 days | +30 days holiday | Vertical + 4 months |
Example: 16-month vertical plus 4-month post-CO carry = 20 months IO on $1.1M average drawn at 11% ≈ $202,000 reserve — not the $147,000 a 14-month-only model shows.
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Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Up to 100% LTC on qualified luxury files up to $2.5M; 75% LTARV cap — fund the lower number. Jaken Finance Group only finances non-owner occupied investment properties.