Unlock New Construction Loan Opportunities with RCN Capital

If you've been following the market, you understand that new construction investing is hotter than ever. Single-family home starts last June were at 883,000, just a slight decrease of 4.6% from May's revised rate of 926,000, indicating demand remains robust regardless of market fluctuations. With the U.S. building industry now estimated at approximately $2.2 trillion in 2025 and private lenders financing more than 60% of ground-up construction, developers and investors are looking for opportunities not found in resale inventory.

The problem? Too many brokers are still losing out. We speak with partners nearly every day who walked away from a construction lead because they lacked a competitive program or lost the deal to someone who was able to close faster.

At RCN Capital, we built our new construction loan programs for speed, flexibility, and broker protection from the outset. That translates to in-house underwriting, rapid draw schedules, and compensation arrangements that keep you in control of the deal. Whether your customer is constructing one spec home or a 5+ unit project, we enable you to compete with confidence and convert one-off opportunities to repeat business.

Why new construction should be in your product mix

New construction projects offer several advantages that matter to brokers:

• Larger loan sizes — Construction budgets and finished values tend to produce higher-ticket loans and higher pay per deal.
• Less direct competition — Most retail consumers and several traditional lenders shut down ground-up developments, so brokers who can place these loans become standouts.
• Repeat relationships — Developers and builders come back to tried-and-true lending partners for subsequent stages or new construction.
• Portfolio diversification for investors — Smart customers utilize construction to appreciate, mitigate maintenance pain, and reap increased rent premiums.

What brokers should expect from the new construction loan process

Go through the following steps to ensure a smooth new construction loan process:

1. Pre-qualification — Confirm developer experience, liquidity, and project basics (site, budgets, plans).
2. Term sheet/commitment — Outline loan type (construction-only or construction-to-permanent), draw schedule, covenants, and rate terms.
3. Third-party validation — Appraisal, budget feasibility report, and contractor vetting.
4. Funding & draws — Initial funding at closing; subsequent draws based on inspections and milestones.
5. Conversion or payoff — Refinance to long-term permanent financing or payoff at sale.

This flow makes you quicker, decreases friction, and enhances closing chances with developers who typically follow multiple lenders.

Why choose RCN Capital construction loans for your clients

RCN Capital is a national direct private lender with in-house underwriting and broker protections integrated in our process. For brokers who work on new construction transactions, this provides three concrete advantages:

• Speed and certainty - Rapid pre-approvals and closings in a matter of business days assist in securing transactions in competitive markets where timing is paramount.
• Flexible, construction-specific programs - Terms and structures can be customized to capture schedules, cost coverage, and the borrower's exit plan. RCN Capital's new construction program funds up to significant percentages of total project costs based on deal details.
• Broker-first protections and tools - White-labeled loan management, fee transparency, and non-circumvention policies safeguard your client relationships and compensation.

Those features combine to create a broker-friendly construction financing experience that developers and investors prefer.

The core components of RCN Capital’s construction offering

Use these program guidelines when matching RCN Capital to a developer’s needs:

• Program type: Construction-only or construction-to-permanent, depending on exit strategy.
• Terms: 12–24 months for construction phases; conversion options vary by project and sponsor.
• Loan coverage: Competitive LTC/LTV based on sponsor experience and underwriting of project; RCN Capital assesses budget feasibility and project merit.
• Interest and structure: Interest-only during construction pulls to maintain cash flow; clear rates and fee disclosure.
• Underwriting focus: Project economics focus, contractor ability, and budget realism over pure borrower credit.

In pitching construction loan programs to a developer or investor, position the discussion in terms of timeline certainty, draw mechanics, and how the lender confirms budgets and completion milestones.

How to package new construction deals that win approvals

Top brokers follow a standardized checklist to accelerate underwriting and reduce back-and-forth:

• A complete project budget with contingency lines and allowances.
• A draw schedule tied to inspections and deliverables.
• Licensed GC profile with references and experience on similar projects.
• Approved plans and permits (or a clear path and timeline to secure them).
• Capital stack clarity — show equity sources, other lenders, and any subordinate financing.
• A clear exit strategy — sale, refinance to permanent, or long-term portfolio hold.

Submitting well-packaged deals results in faster pre-approvals and better terms. RCN Capital’s loan management system enables brokers to upload a complete package under their branding, streamlining decisions and preserving client relationships.

Risk management best practices for construction loans

Construction financing has upside but also execution risk. Use these guardrails to protect clients and your firm:

• Insist on realistic contingencies. Budget for at least 5–10% unexpected costs.
• Verify contractor experience. Prefer GCs with multiple completed projects of similar scale.
• Tie draws to independent inspections. Avoid sole reliance on contractor invoices.
• Structure realistic timelines. Plan for permitting or supply-chain delays; conservative timelines avoid forced extensions.
• Review exit options early. Confirm that permanent financing or sale assumptions are reasonable under stress scenarios.

By integrating these controls into the loan package, you provide deals that are pre-approved by underwriters and that borrowers can execute.

How brokers can win more construction business

• Target developer niches — single-family infill, small multifamily, or upper-end custom builds. Specialization builds credibility.
• Create a turn-key submission package template so every prospect gets a fast, professional pre-approval.
• Leverage white-label marketing from RCN Capital to present lending options under your brand to developer leads.
• Build referral partnerships with contractors, architects, and local entitlement specialists to source higher-quality deals.
• Educate clients on realistic returns and timelines — transparency builds long-term relationships.

These strategies transform one-time construction transactions into long-term relationships that generate consistent revenue.

Pricing, compensation, and broker protection

RCN Capital’s broker program provides flexible compensation options suited to different involvement levels:

• Yield spread, points, or flat finder’s fees — structure compensation to match your business model.
• Transparent disclosures — all fees and broker compensation appear on commitment letters and the HUD settlement statement.
• Non-circumvention and client tagging — your borrower relationships remain protected through the lifecycle of the loan.
• White-labeled BLN portal — maintain your branding on applications and documents.

These elements make wholesale lending with RCN Capital an attractive option for brokers who want clarity and reliability in compensation.

Next steps: make construction a reliable revenue stream

If your product offering lack a construction program, it is time to fill the gap. RCN Capital provides broker training, white-label origination technology, and a committed underwriting team to assist you in closing loans. Join the RCN Capital broker program to receive training as well as access to the white-labeled BLN portal.

• Sign up for the RCN Capital broker program to access training and white-labeled BLN tools.
• Utilize the loan calculator with a package that has been fully completed to see 24-hour decision timescales on full applications.
• Use BLN for branded client experience and faster document workflows.

RCN Capital's integration of speed, program depth, and broker protections positions it as the optimal partner for brokers looking to expand into new construction financing and grow their lending business.

RCN Capital: Your Construction Lending Partner

New construction is a high-value, underserved market that pays brokers who can provide certainty, structure, and velocity. With RCN Capital construction loans, white-labeled tools, and disciplined underwriting and submission habits, you can turn developer opportunities into stable commission streams and long-term client relationships.

Take action now: register as a broker with RCN Capital and include broker-friendly construction financing in your offerings. Begin submitting well-presented deals and see your pipeline expand.

Begin with RCN Capital today and include new construction in your product mix, and win more deals.