Real Estate Loan FAQs | Groundfloor Lending Borrower Questions Answered

Your experience is designed to be consistent. Underwriting standards, timelines, and draw processes are defined at the program level. Your team will outline specifics at term sheet.

More consistent capacity through cycles, reliable draws, and competitive timing. The diversified capital stack supports execution even when markets shift.

We use a hybrid model. Loans are primarily funded by institutional capital via bond-funded programs and private credit solutions, with crowdfunding as a continuing component.

New borrowers - Reach out to your designated BDM or email us directly at [email protected], or give us a call at 404-850-9224.

Existing borrowers - Reach out to your Asset Manager or email us directly at [email protected].

You may repay your Groundfloor Lending loan at any time. There is a three-month minimum interest requirement for prepayments made within the first three months of your loan. After three months, there is no prepayment penalty.

Once your loan is approved, it enters conditional approval, pending your acceptance of Groundfloor Lending's terms and conditions.
At closing, Groundfloor Lending provides the initial disbursement of funds. As the project progresses, borrowers receive loan payments in the form of scheduled draws from a Groundfloor Lending-held escrow account. Please note that draws are approved based on completed work.

Groundfloor Lending operates as an alternative to traditional hard money lenders and funds projects from borrowers at all stages of their renovation careers.

General qualifications include: Must be 18 or older
Must have an active deal (i.e., a property under contract)
Minimum credit score of 640
No bankruptcies or foreclosures within the last 12 months
No felonies within the last 5 years
No record of financially-related offenses
Borrowing entity must be organized in the United States

After submitting a loan application, a Groundfloor Lending representative will contact you to gather more details about your project and discuss terms. The loan then moves through processing, where you submit all required documentation through your Borrower Dashboard.

Once completed, the loan enters the underwriting stage before being cleared to close. You will receive communications and updates about the status of your loan from the Groundfloor Lending team.

Our Operations Team can typically close a loan application within 10–14 business days. We will advise upon review whether the application is complete or if additional information is needed.

Groundfloor Lending generally charges borrowers between 2.75% and 4% of the principal amount of the loan in interest for underwriting.
Borrowers may roll points and fees into the principal loan amount at closing and may defer all interest payments until the loan repays if the loan is a Deferred Payment loan.

Closing costs are $1,250, plus an additional $495 application fee.
Once the loan closes, there may be additional fees for servicing the loan. Please speak to your Business Development Manager for more details.

Key benefits of working with Groundfloor Lending include:

Competitive pricing
Loan terms of 12 or 18 months,
Roll points into closing,
No interest payments (deferred loans),
Loan sizes from $75,000 to $2.5 million,
Fast approvals and closings in as few as 7 days.

To request a draw, log into your Borrower Account and select the "Draw Request" tab. Draws are reimbursed after completion and third-party inspection. For questions, contact [email protected].