Construction Loans
Finance building a home from the ground up.
A construction loan finances the building of a new home. Most of our clients use a construction-to-permanent structure that converts to a traditional mortgage once the home is complete - one loan, one closing.
What a Construction Loan Looks Like
A quick read on who this program fits, what it takes to qualify, and where the money goes - so nothing feels like a surprise.
Who It’s For
Finance building a home from the ground up.
- Buyers building a custom home
- Owners of land ready to build
- Buyers using a licensed general contractor
How You Qualify
Underwriting reviews credit, income, and the property together to build the loan.
- Approved plans, budget, and builder
- Credit generally 640+; 740+ for best pricing
- Down payment typically 10%–20% of total cost
What It Costs
As low as $0 for VA loans; min down for others starts at 3.5%; 10%–20% typical, land equity often counts - Standard closing costs plus construction-specific fees (inspections, draw fees).
- Single-close construction-to-perm option
- Interest-only payments during construction
- Draws released as build milestones are met
What You’ll Need to Qualify
- Approved plans, budget, and builder
- Credit generally 640+; 740+ for best pricing
- Down payment typically 10%–20% of total cost
- Contingency reserves
Have These Ready
- Plans and specifications
- Builder contract and license
- Detailed budget
- Land deed or purchase contract
- Standard income/asset documents
Not Sure If You Qualify Yet?
A licensed loan advisor will walk your numbers with you - no credit pull, no obligation. You’ll leave the call knowing exactly what to fix first.
The Upside - and What to Weigh
Every program has trade-offs. Here’s the honest picture side by side, without the marketing gloss.
Benefits
- Single-close construction-to-perm option
- Interest-only payments during construction
- Draws released as build milestones are met
- Lock your permanent rate up front on some programs
Considerations
- Longer, more complex process
- Timeline risk if construction runs over
- Higher scrutiny of builder and budget
- Buyers with a tight closing timeline - construction takes longer than a purchase loan
- Borrowers without contingency reserves for cost overruns
- Buyers working with an unlicensed or unvetted builder
Run the Numbers on a Construction Loan
Adjust the price, down payment, and rate to see an estimated monthly payment. Great for narrowing the search before you formally apply - a quick preapproval confirms your real numbers.
Estimate only. Taxes, insurance, and PMI vary by location and loan program.
Get Preapproved
From Application to Keys in Typically 30–60 days to close the construction loan; the build itself commonly takes 6–12+ months.
- 01Apply
Quick online form or a 10-minute call.
- 02Verify
Income, assets, and credit reviewed together.
- 03Appraisal
Property value confirmed for the loan amount.
- 04Close
Sign, fund, and get your keys.
More for Construction Loans Shoppers
Compare Similar Programs
Run the Numbers
Read up Before You Apply
Free Downloadable Guides
Questions We Hear About Construction Loans
Can’t find yours here? A licensed advisor can walk through your specific situation in under 15 minutes.
Straight answers, no pressure - email or call directly.
See if a Construction Loan Fits Your Situation.
A 10-minute preapproval gives you real numbers and a licensed advisor to answer questions - no pressure, no obligation.
