Last updated: January 2026
Quick answer
Developers in Miami secure $1M+ construction loans by working with private lenders who offer flexible terms and fast funding. These loans are based on project feasibility, developer experience, and property value, not just credit scores or income.
What is a Miami construction loan?
A Miami construction loan is short-term financing used to fund the building of residential or commercial properties.
Unlike a conventional mortgage, construction loans are typically interest-only during the build phase and paid in installments called “draws” based on project milestones.
For projects exceeding $1 million, Miami developers often turn to private lenders. These lenders often provide quicker approvals, consider alternative documentation, and fund deals based on the property’s projected value upon completion.
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How large-scale construction loans work in Miami
Construction loans above $1 million in Miami are structured differently from traditional mortgages.
Here’s how they generally work:
- Loan term: 12 –24 months
- Disbursement method: Draw schedule tied to project phases
- Collateral: Land and improvements (building under construction)
- Loan amount: Based on loan-to-cost (LTC) and projected after-completion value
- Repayment: Interest-only monthly payments until payoff or refinance
Developers often use these loans to finance luxury homes, mid-rise condos, multifamily units, and mixed-use buildings in high-demand areas such as Brickell, Wynwood, and Coconut Grove.
What lenders look for in $1M+ Miami construction loans
Securing a large construction loan requires more than a good idea.
Private lenders will evaluate:
- Developer experience: A strong track record in construction or successful past projects
- Detailed project plans: Blueprints, timelines, and budgets
- Permits and approvals: Proof of entitlement and zoning compliance
- Exit strategy: Sale of units or refinance with long-term financing
- Down payment or equity: Often approximately 20%–35% of the total project cost
- LTV ratio: Typically in the 65-70% ARV (after repair value)
- LTC ratio: Typically up to 80% of project costs, depending on project type, borrower experience, and lender underwriting
These criteria generally carry more weight than a credit score alone. Real estate investors with proven expertise and compelling plans may qualify, even with unconventional financial profiles, depending on project strength, equity, and experience.
Why Miami developers choose private lenders
Banks are cautious about lending on speculative construction projects, especially in a market as fast-moving as South Florida. Private lenders like Marquee Funding Group may be a suitable option for some developers.
Key benefits of private construction loans:
- Fast approvals may occur in as few as 5–10 business days, subject to complete documentation, clear title, and lender underwriting approval. Actual timelines vary.
- Flexible underwriting based on assets, not income
- Income and tax return documentation is generally not required in many cases. Documentation requirements may vary based on project complexity and lender discretion.
- Willing to fund non-owner-occupied and investment properties
- Can structure loans around the property’s projected future value
Private lenders understand real estate development and often work closely with borrowers throughout the financing process.
Key loan terms to understand
Miami construction loan agreements often include these terms:
| Term | Definition |
| Loan-to-cost (LTC) | Percentage of total project cost the lender will finance (e.g., 70%-80%) |
| Loan-to-value (LTV) | Based on appraised value at project completion |
| Interest reserve | Built-in funds to cover loan payments during construction |
| Draw schedule | Timeline and conditions for disbursing construction funds in phases |
| Completion deadline | Required finish date to avoid penalties or default |
| Exit strategy | Plan for repaying the loan (sale or refinance) |
Understanding these terms is essential to planning and managing your construction project.
Typical projects funded with $1M+ construction loans
Private construction loans in Miami are used for a variety of high-value real estate projects. These include:
- Luxury single-family homes in Coral Gables or Miami Beach
- Multifamily buildings in Little Havana or Edgewater
- Townhouse developments in Coconut Grove
- Mixed-use properties with residential and retail components
- Spec homes built for resale in upscale neighborhoods
Developers targeting wealthy buyers or rental income can leverage construction loans to develop real estate assets aligned with market demand.
How to get approved for a Miami construction loan
Here are the steps to improve your chances of approval:
- Assemble your team: Include licensed contractors, architects, and consultants.
- Prepare your project file: Include plans, timelines, budgets, permits, and comps.
- Show skin in the game: Be ready to contribute equity or land.
- Demonstrate your experience: Highlight completed projects and any investor partners.
- Work with a reputable lender: Choose one that understands local markets and high-value deals.
Marquee Funding Group specializes in private construction loans of $1 million or more and works directly with developers.
Understand your financials and timeline
Before applying, clearly outline your expected monthly cash flow, how long you anticipate each phase will take, and what contingencies are in place for delays.
Lenders value transparency and preparation, especially for large, complex builds.
Even if you’re not providing traditional income documentation, demonstrating control over your budget, subcontractor agreements, and a projected draw timeline can strengthen lenders’ confidence.
A well-documented plan can make the difference between a delayed deal and fast-track approval.
Start your next Miami project with the right funding
Whether you’re building a luxury home or developing a multifamily complex, the right financing can make or break your project. Miami construction loans over $1 million require experience, planning, and the right lending partner.
At Marquee Funding Group, we provide construction financing designed to move more efficiently than some traditional bank processes, subject to underwriting and documentation. Our construction loans are designed for experienced developers operating as LLCs or corporations, with 3+ completed projects and loan needs ranging from $750K to $5M.
If you have a well-structured project and meet eligibility criteria, we can discuss financing options, subject to full underwriting and lender approval. Contact Marquee Funding Group today to discuss your Miami construction financing scenario. Meeting eligibility criteria does not guarantee loan approval. All loans are subject to underwriting and lender approval.
Frequently asked questions: Miami construction loans
There’s no universal minimum. Private lenders may approve loans with lower scores if the deal makes sense and you bring strong equity or experience.
Some private lenders may fund in 5–10 business days, subject to complete documentation, clear title, and lender underwriting approval.
Yes. Many developers in Miami use construction loans to build homes intended for resale, especially in high-end neighborhoods.
Borrowers may sell the finished property or seek to refinance into long-term financing, subject to qualification at that time.