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Ground-up construction loans in Alabama

Ground-up construction financing in Alabama covers single-family and 2–4 unit builds, from the lot to the final line item, sized on cost and capped on as-complete value. Program terms do not change by state; permits, closing costs and the lien process do. Here is what applies in Alabama.

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PROGRAM TERMS · SAME IN EVERY STATE

Ground-up terms in Alabama

Silt's terms do not change at the state line. The term sheet reflects the property, the file and the supported value.

Loan amounts
$200K – $10M
Residential scope
1–4 units · nationwide
Leverage
90% LTC · 70% ARV
Structure
Interest-only, 12–24 mo
Draws
Funded in 48h, app-based
Projects
Infill & multi-lot
WHAT IS SPECIFIC TO ALABAMA

Alabama facts that touch this loan

  • Foreclosure. Alabama is listed as a non-judicial-foreclosure jurisdiction: a power-of-sale clause in the deed of trust or mortgage lets the sale proceed without a court judgment, following the statutory notice steps. [1]
  • Recordation tax rates. Alabama’s recordation taxes are $0.50 per $500 of deed value or fraction and $0.15 per $100 of mortgage indebtedness or fraction. These are separate deed and mortgage charges; confirm the applicable exemptions and settlement allocation with the closing agent. [2]
  • Foreign LLC filing fee. The Secretary of State lists a $150 foreign LLC registration filing fee and requires a prior name reservation. Reservation costs are separate. Whether passive title holding or rental operations require registration depends on the entity’s activities. [3]
  • County equalization mechanism. Alabama counties prepare annual sales-ratio studies to measure appraisal equalization and reappraisal priorities, using sales, cost and income data. Review the county valuation rather than treating the purchase price or seller’s bill as an automatic assessment. [4]
  • Residential nonpayment: seven business days. Official Alabama court guidance citing §35-9A-421 requires a written seven-business-day nonpayment notice with an opportunity to pay delinquent rent before residential tenancy termination. This is not a commercial-lease rule. [5][6]
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Land value is an input assumption, not confirmed equity. Interest assumes the loan is fully drawn; actual draws change interest.

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LARGEST METRO AREAS

Where Alabama's population is

By Census Bureau population estimates, Vintage 2025 (July 1, 2025). Silt lends statewide — these markets are not a limit. Metros are ranked by full-area population among those listing this state first in the Census name; Washington is also included for Virginia and Maryland. Interstate totals are not state-only populations. [7]

  • Birmingham, AL
  • Huntsville, AL
  • Mobile, AL
  • Montgomery, AL
  • Tuscaloosa, AL
FAQ

Ground-up in Alabama: questions investors ask

Does Silt make ground-up loans in Alabama?

Yes. Alabama is one of the states Silt lends in, and the ground-up program covers single-family and 2–4 unit residential construction — infill, multi-lot, spec, custom and luxury.

Is Alabama a judicial or non-judicial foreclosure state?

Alabama is listed as a non-judicial-foreclosure jurisdiction: a power-of-sale clause in the deed of trust or mortgage lets the sale proceed without a court judgment, following the statutory notice steps.

Do ground-up terms change in Alabama?

No. The program terms are the same in every state Silt lends in: loan amounts $200K – $10M; residential scope 1–4 units · nationwide; leverage 90% LTC · 70% ARV; structure Interest-only, 12–24 mo; draws Funded in 48h, app-based; projects Infill & multi-lot. The final term sheet reflects the property and the file.

Can I close in an LLC in Alabama?

Every Silt loan closes in an LLC or corporation, never a personal name. The Secretary of State lists a $150 foreign LLC registration filing fee and requires a prior name reservation. Reservation costs are separate. Whether passive title holding or rental operations require registration depends on the entity’s activities.

What closing taxes should I budget in Alabama?

Alabama’s recordation taxes are $0.50 per $500 of deed value or fraction and $0.15 per $100 of mortgage indebtedness or fraction. These are separate deed and mortgage charges; confirm the applicable exemptions and settlement allocation with the closing agent.

What do you need from the general contractor?

A licensed GC, contractor license and insurance, an executed GC agreement and an itemized budget. Plans, permits and the construction schedule should describe the same scope so underwriting and the draw plan stay aligned.

RELATED
SOURCES
  1. Fannie Mae — Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit (method of foreclosure by state)
  2. AL — Recordation tax rates
  3. AL — Foreign LLC filing fee
  4. AL — County equalization mechanism
  5. Jackson County Alabama court eviction guidance
  6. Calhoun County Alabama court procedures citing §35-9A-421
  7. U.S. Census Bureau — Vintage 2025 metro resident-population estimates (July 1, 2025)

Estimates on this page are not a commitment to lend. State facts reviewed October 2026; laws and rates change — confirm with your title company or attorney.