How much down for new construction with no experience?

The deal, in pictures

Words on this page

Cash to close

The money you bring to the closing table: down payment plus every closing cost.

Proof of funds

Cash the lender wants to see in your bank statements. Only the cash to close is spent; the rest stays yours.

Reserves

Months of payments or interest you show in the bank. They stay in your account.

The short answer, as of October 2026

• Lower Fees funds the whole build. You bring $60,000 on the lot plus closing costs.
• The Financed Interest Reserve asks for less at closing and makes the interest payments while you build, but leaves $33,100 of the build to you.
• 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.

How do the options compare?

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.

How does it actually work?

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. The rest of the lot is your down payment.

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.

What else do people ask?