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Meet Bill Rapp

NMLS ID # NMLS # 228246

William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.

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Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.

27185 Astoria Brook Ln, Katy, TX 77494, USA

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🚧 Developer Construction Financing Strategies That Get Projects Approved 🏢

🏗️ Builder Construction Loans Explained: Smart Financing Tips for Developers 💰

Bill Rapp, Commercial Mortgage Broker

February 14, 2026•2 min read

🏗️ Builder Construction Loans Explained: Smart Financing Tips for Developers 💰

🚧 Developer Construction Financing Strategies That Get Projects Approved 🏢

🏗️ Builder & Developer Construction Financing Tips

Construction financing is a different game than traditional residential mortgages. Builders and developers who understand how lenders evaluate risk, structure draws, and calculate project viability consistently get approved faster — and at better terms.

At Medallion Funds, we specialize in structuring construction loans for builders, developers, and investor-clients across Texas and nationwide. Whether you're building spec homes, custom residences, small multifamily, or light commercial, the strategy behind your financing matters as much as the project itself.

Let’s break down what smart builders need to know.

🔑 1. Understand LTC vs. LTV (Not Just the Rate)

Most builders focus on the interest rate. Lenders focus on:

·Loan-to-Cost (LTC) – Percentage of total project cost financed

·Loan-to-Value (LTV) – Percentage of completed value financed

·After Repair Value (ARV)

Construction lenders typically fund 70%–85% of cost depending on experience, liquidity, and project type.

💡 Pro Tip: The stronger your liquidity and track record, the more leverage flexibility you can negotiate.

🏗️ 2. Prepare a Lender-Ready Construction Package

Approval speed depends on preparation. Builders should have:

·Detailed construction budget (line-item breakdown)

·Signed builder contract

·Plans & specs

·Timeline / build schedule

·Resume of experience

·Entity documents

·Liquidity verification

·Exit strategy (sale, refinance, or hold)

As a mortgage broker, I help clients package their projects in lender language — which significantly improves approval odds.

💰 3. Interest Reserves & Draw Structure Matter

Construction loans typically include:

·Interest-only payments during build

·Draw inspections (typically 4–6 draws)

·Contingency reserves (5–10%)

Mismanaging draw schedules can stall projects. Structuring adequate reserves prevents liquidity crunches.

🏢 4. Exit Strategy Drives Approval

Lenders want to know:

·Will this property be sold?

·Refi into a long-term DSCR loan?

·Held as rental?

·Converted to owner-occupied financing?

Builders who plan their permanent financing before breaking ground have stronger approval profiles.

For developers building to rent, pairing construction financing with a DSCR takeout strategy is one of the smartest moves in today's market.

🧠 5. Work With a Broker Who Knows Construction

Going directly to one bank limits your options. Construction financing varies significantly between:

·Local banks

·Credit unions

·Private lenders

·National non-QM lenders

·Debt funds

At Medallion Funds, we work with 600+ lenders to structure:

·One-time close construction loans

·Ground-up investor builds

·Small multifamily construction

·Build-to-rent portfolios

·Light commercial construction

That flexibility saves time, protects leverage, and improves capital stack alignment.

🚀 Final Thoughts

Builders and developers who treat financing as part of their development strategy — not an afterthought — scale faster and avoid costly delays.

If you're planning your next project, structure the loan with the end in mind.

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Builder construction loansconstruction financingDeveloper financing tipsGround up Construction Loan GUCLoan-to-cost (LTC)Loan-to-value (LTV)one-time close construction loanBuild-to-rent financingDSCR takeout loanConstruction draw schedule

Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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