Construction loans
Finance Your Home Build from Start to Finish
Planning to build instead of buy? Construction loans provide flexible financing to cover land, materials, and labor. Then transition into a long-term mortgage once your home is complete. Whether you’re working with a builder or managing your own project, we’ll guide you through every step.
A construction loan is short-term financing used to fund the building of a new home. Funds are typically released in stages called draws,as construction progresses. Many borrowers choose a construction-to-permanent loan, which converts into a standard mortgage after the build, simplifying the process with a single closing.
What Is a construction Loan?
a construction loan can be used for:
Building a Primary Residence
Working with a Licensed Builder
Purchasing Land and Building
Construction-to-Permanent Financing
Benefits of a construction loan
FINANCE THE FULL BUILD
ONE TIME CLOSE OPTIONS
FLEXIBLE TIMELINES AND DRAW SCHEDULES
HOW TO QUALIFY for a CONSTRUCTION Loan
If you’re asking “what do I need to qualify for a construction loan?”
Here’s a general guide:
Credit score: Typically 620+ (varies by program)
Down payment: 3%-20%, depending on ownership, program, and equity
Detailed plans & budget: Builder contract, blueprints, timeline
Licensed builder approval (in most cases,depending on state requirements)
Stable income & reserves
We’ll review your plans and finances together to determine the best path.
FAQs
How does a construction-to-permanent loan work?
1
It starts as a construction loan and automatically converts into a traditional mortgage after the home is complete, often with one closing.
Do I make payments during construction?
2
In many cases, payments are interest-only based on the amount drawn during the build phase.
How long does the construction phase last?
3
Typically 6–12 months, depending on the project.
Can I buy land and build with one loan?
4
Yes, many construction loans allow you to finance both land purchase and construction.