On a Domus ground-up construction loan you pay points of 1% to 2% of the loan amount, a processing and underwriting fee of $2,000 to $2,500, an appraisal, title and closing costs, a flat $295 inspection per draw, and interest charged only on drawn funds. Points, the processing fee and closing costs are paid in cash.
| Cost | Amount | When it is paid | Who it is paid to |
|---|---|---|---|
| Points | 1% to 2% of the loan amount. | At closing, in cash. | Domus. |
| Processing and underwriting fee | $2,000 to $2,500. Includes the feasibility and budget review and Domus legal and document preparation. | $495 upfront, the rest at closing, in cash. | Domus. |
| Appraisal | Required. Typically $700 to $1,000. | Before closing. | Directly to the appraiser. |
| Title and closing | Typically 0.5% to 1% of the loan amount. Title insurance, recording fees and similar. | At closing, in cash. | The title company. |
| Draw inspection | Flat $295 per draw, virtual or in person. | With each draw. | A third-party inspection company. |
| Interest | Rate from 9%, as of October 2026. Charged only on drawn funds. | Monthly, from the interest reserve. | Domus. |
| Interest reserve | Part of the loan. It pays the monthly interest. | Set aside at closing, held in escrow and drawn monthly. Once it is depleted, you pay interest out of pocket. | Held in escrow. |
| 3-month minimum interest | If the loan is paid off within the first 3 months, you still pay 3 months of interest. After 3 months, no prepayment penalty. | At payoff, if within the first 3 months. | Domus. |
| Builder’s risk insurance | Required. | In place before the first draw funds. | — |
Updated . Business-purpose loans only. These costs apply to our ground-up construction loan program, where the complete program terms are listed.
Points, the processing fee and closing costs are not financed. You pay them in cash.
The interest reserve is part of the loan. It is set aside at closing, held in escrow and drawn each month to pay your interest. Once it is depleted, you pay interest out of pocket.
Interest is charged only on drawn funds, so what you pay in interest depends on when you draw. Each draw has a third-party inspection at a flat $295, and how construction loan draws work covers the request, the inspection and the funding.
Extensions are considered case by case.
Example calculation with round numbers, not a real deal.
| Loan amount | $1,000,000 |
|---|---|
| Rate assumed for the example | 10% |
| Term | 12 months |
| Points (1.5% of $1,000,000) | $15,000 |
| Processing and underwriting fee | $2,500 |
| Appraisal | $850 |
| Title and closing (0.75% of $1,000,000) | $7,500 |
| Draw inspections (5 draws × $295) | $1,475 |
| Interest (10% on an assumed average drawn balance of $600,000, for 12 months) | $60,000 |
| Total ($15,000 + $2,500 + $850 + $7,500 + $1,475 + $60,000) | $87,325 |
The interest line is an assumption: it takes an average drawn balance of $600,000 across the 12 months. Land is funded at closing, not as a draw, and interest is charged only on drawn funds, so the interest on a real loan depends on when each draw is taken.
The example covers the costs of the loan only. Your equity in the project is a different number: at the 85% LTC standard you contribute at least 15% of project cost. The construction loan down payment and LTC page covers that calculation.
Example calculation with round numbers, not a real deal. Updated . Business-purpose loans only.
Points are 1% to 2% of the loan amount, paid at closing. The processing and underwriting fee is $2,000 to $2,500, and it includes the feasibility and budget review and Domus legal and document preparation. Title and closing typically run 0.5% to 1% of the loan amount, paid to the title company. The appraisal is typically $700 to $1,000, paid before closing. Each draw inspection is a flat $295. Points, the processing fee and closing costs are not financed: you pay them in cash.
Yes. $495 of the processing and underwriting fee is paid upfront, to Domus. The rest of that fee, which is $2,000 to $2,500 in total, is paid at closing. The appraisal, typically $700 to $1,000, is also paid before closing, directly to the appraiser.
At Domus, points are 1% to 2% of the loan amount, paid at closing, to Domus. They are not financed: you pay them in cash. On a $1,000,000 loan, 1.5 points is $15,000.
It is the cost of the third-party inspection on each draw. At Domus it is a flat $295 per draw, whether the inspection is virtual or in person, and the borrower pays it. A typical single-family build takes about 5 draws, which is $1,475 in inspections.
There is a 3-month minimum interest. If the loan is paid off within the first 3 months, you still pay 3 months of interest. After 3 months, there is no prepayment penalty.
By Maximiliano Extrakt, Co-Founder, Domus Lending Group. Updated .
Business-purpose loans only.
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