Another key feature of ground up construction loans is that they typically have more flexible qualification requirements than traditional mortgages. This is because the loan is secured by the value of the land and the completed building, rather than by the borrower's personal credit history. As a result, borrowers who may not qualify for a traditional mortgage due to factors such as a low credit score or high debt-to-income ratio may still be able to obtain a ground up construction loan.

One potential drawback of ground up construction loans is that they can be more expensive than traditional mortgages. This is because these loans typically require the borrower to pay interest-only payments during the construction phase, which can add to the overall cost of the loan. Additionally, ground up construction loans often require the borrower to make a larger down payment than is required for a traditional mortgage.