Question 1

Are conventional and conforming the same thing in Broward County?

Accepted Answer

Close cousins. 'Conventional' means not government-insured. 'Conforming' means the loan also fits Fannie Mae/Freddie Mac rules and stays under the county loan limit — $832,750 for one unit in Broward County for 2026. Every conforming loan is conventional; a conventional loan above the limit is a jumbo.

Question 2

What is the conforming loan limit in Broward County on a conventional construction loan?

Accepted Answer

For 2026, the one-unit conforming limit in Broward County is $832,750, with higher limits for 2–4 unit properties. That's the ceiling for a standard conventional loan — including a construction-to-permanent loan — before jumbo pricing applies. It resets each year, so the number moves.

Question 3

Fannie Mae vs Freddie Mac — does it matter to me in Broward County on a conventional construction loan?

Accepted Answer

Rarely in a way you'd feel. Both purchase conventional loans under similar guidelines, and both support single-close construction financing. Where their rules differ at the margins — income treatment, certain property types — we simply route your Broward County file to whichever set fits your situation. That routing is our job, not your worry.

Question 4

What is automated underwriting (DU and LPA) in Broward County on a conventional construction loan?

Accepted Answer

Desktop Underwriter (Fannie Mae) and Loan Product Advisor (Freddie Mac) are the engines that analyze your full file — credit, income, assets, the property — and issue a recommendation in minutes. An Approve/Eligible finding often unlocks flexibility no rulebook chart shows, including DTI room. Every Broward County file we build is run through them strategically, not just submitted blindly.

Question 5

Should I choose a fixed rate or an ARM for my build in Broward County on a conventional construction loan?

Accepted Answer

Fixed-rate loans keep the payment identical for the full term — maximum certainty, and required for the 97% LTV option. ARMs start with a fixed period (5, 7, or 10 years) then adjust with the market. On construction loans, fixed is the Broward County default because you're already managing build-phase variables; but the right answer depends on how long you'll keep the home. We model both.

Question 6

What loan terms are available on conventional loans in Broward County?

Accepted Answer

Fixed-rate terms of 10, 15, 20, and 30 years, plus 5-, 7-, and 10-year ARMs. The 30-year fixed is the most common on Broward County construction-to-permanent loans, but a 15- or 20-year term saves substantial interest for buyers with room in the budget. We show the amortization side by side and let you pick.

Question 7

What is HomeReady and could it help me build in Broward County on a conventional construction loan?

Accepted Answer

HomeReady is Fannie Mae's affordable conventional program: 3% down, reduced mortgage insurance, flexible funding sources like gifts and grants, and even boarder income counting toward qualification. It's for borrowers earning up to 80% of the area median income. Freddie's Home Possible is the sibling program. For qualifying Broward County buyers, it can pair with new-construction purchases too.

Question 8

What credit score do I need for a conventional loan in Broward County?

Accepted Answer

The published floor for manual underwriting is 620, and automated underwriting evaluates the full file rather than a single cutoff. Higher scores improve mortgage-insurance and pricing tiers, so there's a real payoff to each band you climb. If you're close but not there, we'll map the fastest score-building path before your Broward County build, not after.

Question 9

Do I need cash reserves for a conventional construction loan in Broward County?

Accepted Answer

Sometimes. Automated underwriting sets reserve requirements case by case — many primary-residence approvals need none, while manual underwriting, multi-unit builds, and investment properties can require two to six months of payments in the bank. Retirement accounts often count. We tell you the exact number for your Broward County scenario before you commit.

Question 10

Are there income limits on conventional loans in Broward County?

Accepted Answer

Standard conventional loans have no income limits at all — earn whatever you earn. Only the affordable programs (HomeReady/Home Possible) cap income, at 80% of area median, in exchange for their perks. So high earners aren't excluded and moderate earners get a discount lane. Broward County buyers fit somewhere on that spectrum, and we place you deliberately.

Question 11

I own several properties already — can I still build conventionally in Broward County on a conventional construction loan?

Accepted Answer

Yes — conventional financing allows up to ten financed properties for investors, with reserve requirements that step up as the portfolio grows. Second-home and investment construction both work. This is where conventional runs laps around government programs, which are owner-occupied-only. Broward County portfolio builders live in conventional territory.

Question 12

How long after bankruptcy or foreclosure can I get a conventional loan in Broward County?

Accepted Answer

General waiting periods: four years after a Chapter 7 discharge, two years after a Chapter 13 discharge, seven years after a foreclosure, and four after a deed-in-lieu or short sale — with shorter windows possible under documented extenuating circumstances. The clock has usually run longer than people assume. Bring us the dates and we'll tell you exactly where you stand for a Broward County build.

Question 13

Does the conventional loan use my middle credit score in Broward County?

Accepted Answer

The representative score drives the decision — and it matters twice on construction: 680 gets you approved, 700 or higher waives requalification at completion. If you're sitting at 690, a few months of targeted credit work before closing can simplify your entire build. In Broward County — including around Deerfield Beach and Fort Lauderdale — the same guideline applies.

Question 14

What's the maximum debt-to-income ratio on a conventional loan in Broward County?

Accepted Answer

With an automated approval, DTI can reach 50%. Manually underwritten files cap at 36–45% depending on compensating factors like reserves and credit. Remember the ratio uses gross income, and on a construction loan we qualify you on the full future payment — so your Broward County budget is honest from day one.

Question 15

Can a co-signer who won't live in the home help me qualify in Broward County on a conventional construction loan?

Accepted Answer

Yes — conventional loans allow non-occupant co-borrowers, with the loan capped at 95% LTV on automated approvals when their income is used. A parent's income helping a child build in Broward County is the classic setup. The co-borrower shares full legal responsibility, so it's a family decision worth making with clear eyes.

Question 16

Can I build on land subdivided from a family parcel in Broward County on a conventional construction loan?

Accepted Answer

Yes — once the split is legally recorded and your parcel has its own legal description, tax ID, and access, it's buildable land like any other. Gift-of-equity treatment can apply if family sells it to you under market value. The subdivision process runs through Broward County planning, and we'll tell you exactly what recorded documents underwriting needs.

Question 17

Can I use construction-to-permanent financing for a condo in Broward County on a conventional construction loan?

Accepted Answer

No — attached condo units and co-ops are specifically excluded from construction-to-permanent financing under Fannie Mae guidelines. Detached homes, townhome-style attached units in PUDs, and 1–4 unit properties are the lane. If your Broward County plans involve a condo project, different financing structures apply and we'll walk you through them.

Question 18

Can I build a second home with a conventional construction loan in Broward County?

Accepted Answer

Yes — second-home construction is fully supported, with as little as 10% down. This is territory government programs can't enter: FHA, VA, and USDA are owner-occupied-primary only. A vacation build near the water in Broward County runs on conventional financing, full stop.

Question 19

Is there an acreage limit for conventional loans in Broward County?

Accepted Answer

No fixed cap — conventional guidelines care about the property being residential in character, not a working farm, with value supported by comparable sales. Large Broward County parcels finance regularly; the appraiser just needs similar acreage sales to lean on. We assess the comp landscape before you contract on big land.

Question 20

Can I include an ADU or in-law suite in my conventional build in Broward County?

Accepted Answer

Yes — an accessory dwelling unit can be part of the plans on a one-unit build, and its rental income may even be considered in qualifying under the right program. Multigenerational living and rental offset are both strong Broward County plays. Zoning is the gatekeeper, so we confirm the parcel allows it before plans are drawn.

Question 21

Can I finance a tiny home in Broward County on a conventional construction loan?

Accepted Answer

Tiny homes are treated as manufactured housing and must have at least 600 square feet of living area — which rules out most true tiny builds. If your plan clears 600 square feet on a permanent foundation, let's look at it. In Broward County — including around Hallandale and Hollywood — the same guideline applies.

Question 22

Can I build a duplex or multi-unit with a conventional construction loan in Broward County?

Accepted Answer

Yes — conventional construction-to-permanent financing covers 1–4 unit properties. A duplex you'll live in can be built with as little as 15% down under standard eligibility, and living in one unit while renting the others is a proven Broward County wealth-building play. Investment-only multi-unit builds work too, with larger down payments.

Question 23

How soon after completion can I move in in Broward County on a conventional construction loan?

Accepted Answer

As soon as the certificate of occupancy is issued — that's the legal green light. The loan conversion paperwork runs in parallel and doesn't hold up your move. Most Broward County families are unpacking within days of the CO. On a primary-residence loan you're expected to occupy within 60 days, which is never the issue on a home you just built.

Question 24

Do draws go to my builder or to the subcontractors in Broward County on a conventional construction loan?

Accepted Answer

Directly to your builder — the program doesn't disburse to individual subs. The one exception is a modular unit invoice, which can be paid directly to the manufacturer. Your builder manages sub payments under the turnkey contract. In Broward County — including around Deerfield Beach and Fort Lauderdale — the same guideline applies.

Question 25

Why do builders in Broward County like conventional One-Time Close buyers?

Accepted Answer

The buyer is fully underwritten and closed before ground breaks, draws fund reliably as work completes, and the builder isn't carrying a construction line on their own credit. For builders around Fort Lauderdale and Hollywood, that's a lower-risk, faster-certainty sale.

Question 26

Can construction start before the conventional loan closes in Broward County?

Accepted Answer

No — ground broken before closing creates title and lien priority problems that can sink the loan. The mortgage must record before construction begins so the lender holds first position. Eager Broward County builders sometimes want to start early; the answer protects you both. Close first, build second.

Question 27

Do I have to own land before applying for a conventional construction loan in Broward County?

Accepted Answer

No — the land purchase can be part of the same loan. If you've found a Broward County lot near Coral Springs or Dania, the single-close can buy it and fund the build in one transaction. Already own land? Even smoother — your equity goes to work as down payment.

Question 28

When does my first full mortgage payment start in Broward County on a conventional construction loan?

Accepted Answer

After the home is complete and the loan converts to permanent financing. During the build you're typically paying interest only on drawn funds; once your Broward County home gets its certificate of occupancy and the conversion happens, regular principal-and-interest payments begin — usually the first of the month after conversion.

Question 29

How is a home that doesn't exist yet appraised in Broward County on a conventional construction loan?

Accepted Answer

From the plans. The appraiser reviews your blueprints, specifications, and cost breakdown, then values the home 'subject to completion' using comparable finished sales in Broward County. That as-completed value is what the loan is built on. A final inspection after construction confirms the home matches what was appraised.

Question 30

Can I build a manufactured home with a conventional construction loan in Broward County?

Accepted Answer

Yes. A new manufactured home that has never been attached to a foundation can be financed with a conventional construction-to-permanent loan, covering the home purchase, foundation, and site work. Fannie Mae's MH Advantage program even allows up to 97% financing on qualifying homes. Underwriting must run through the automated systems, and we handle that on Broward County placements.

Question 31

Do conforming loan limits apply to construction loans in Broward County on a conventional construction loan?

Accepted Answer

Yes — a conventional construction-to-permanent loan follows the same conforming limit as any conventional mortgage. In Broward County the 2026 one-unit limit is $832,750, and multi-unit builds get higher limits. Total project cost above the limit moves you into jumbo construction territory, which we also handle.

Question 32

What happens if my builder abandons the project in Broward County on a conventional construction loan?

Accepted Answer

The draw system is your protection: the builder has only been paid for verified completed work, so the remaining funds are intact to bring in a replacement contractor. The lender works with you to register a new builder and restart draws. It's rare — builder vetting up front exists precisely so Broward County families never face this — but the structure protects you if it happens.

Question 33

What kind of construction contract is required in Broward County on a conventional construction loan?

Accepted Answer

A written, signed contract between you and a licensed general contractor, with full plans, specifications, an itemized cost breakdown, the price structure (fixed-price or cost-plus), timeline, and warranty terms. Fixed-price (turnkey) contracts are strongly preferred — they cap your risk. We review the Broward County contract before it goes to underwriting.

Question 34

When do realtor commissions get paid on a construction deal in Broward County on a conventional construction loan?

Accepted Answer

A commission paid by the land seller is paid at closing, when the land is paid off. A commission the builder owes per the contract pays at completion. Knowing the split keeps every party's expectations straight from day one. In Broward County — including around Coconut Creek and Coral Springs — the same guideline applies.

Question 35

Can I do some of the work myself to save money in Broward County on a conventional construction loan?

Accepted Answer

Limited sweat equity is sometimes possible — think landscaping or painting after key inspections — but structural, electrical, plumbing, and anything requiring a licensed trade must go through your general contractor. Draw funds only release for verified professional work. Talk to us about which Broward County line items can realistically be owner-performed before you count the savings.

Question 36

I've owned my land over a year in Broward County — does that change my conventional loan?

Accepted Answer

It can, meaningfully. When you've owned the lot 12+ months before closing, Fannie Mae allows the loan to be based on the as-completed appraised value rather than your actual cost. If Broward County land values have risen since you bought — and around Hollywood they often have — that appreciation works like extra down payment you never wrote a check for.

Question 37

Can family gift me land to build on in Broward County on a conventional construction loan?

Accepted Answer

Yes — gifted or inherited land is fully acceptable for a conventional construction loan, and its value can count toward your down payment and equity. Freddie Mac explicitly recognizes land acquired by gift, inheritance, or court award. A parcel carved off the family property in Broward County is one of the most common ways builds begin.

Question 38

What's the difference between modular and manufactured for conventional loans in Broward County?

Accepted Answer

Modular homes are built in sections, assembled on-site, and meet the same local building codes as stick-built houses — conventional lending treats them exactly like site-built homes. Manufactured homes are built to the federal HUD code on a permanent chassis and follow their own guideline set with a few extra rules. Both can be financed in Broward County; the paperwork path just differs.

Question 39

Can the builder cover closing costs on a conventional build in Broward County?

Accepted Answer

Yes — builder contributions are treated as interested-party contributions, capped by your down payment tier: 3% of value with less than 10% down, 6% with 10–25% down, 9% above 25%. Investment builds cap at 2%. Builder-paid closing costs are a common negotiating point on Broward County contracts, and we make sure yours stays inside the limits.

Question 40

What is a conventional One-Time Close construction loan in Broward County?

Accepted Answer

It's one loan that covers buying the land, building the home, and your permanent mortgage — with a single closing before the first shovel hits dirt. Fannie Mae calls it single-closing construction-to-permanent; Freddie Mac calls it One-Time Close. In Broward County — including around Margate and Pembroke Pines — it means one approval, one set of closing costs, and no second qualification after the build.

Question 41

Are building permits required before draws in Broward County on a conventional construction loan?

Accepted Answer

Yes — building permits must be submitted before any construction funds are drawn. Your builder handles permitting with the local authority in Broward County; the draw process simply verifies it happened.

Question 42

Who pays for the appraisal and draw inspections in Broward County on a conventional construction loan?

Accepted Answer

The borrower, as with any loan — the plan-review appraisal runs somewhat above a standard appraisal, and each draw inspection carries a modest fee, all disclosed up front on your estimate. Some builders absorb inspection costs in the contract. No surprises: every Broward County fee is on paper before you commit.

Question 43

How are builder deposits handled on a conventional build in Broward County?

Accepted Answer

Deposits you've paid the builder for plans or to reserve a slot are documented and credited to you within the transaction — they're part of your investment in the project, not lost money. Keep every receipt. Large deposits before loan approval carry risk, though: on a Broward County custom build, keep pre-closing deposits modest until financing is locked.

Question 44

How do property taxes and insurance work during construction in Broward County on a conventional construction loan?

Accepted Answer

During the build you'll typically carry a builder's-risk insurance policy (often through the builder) and pay taxes on the land value only. At conversion, standard homeowner's insurance takes over and the escrow account begins collecting for Broward County taxes and premiums with your regular payment. We line up the insurance handoff so there's never a coverage gap.

Question 45

What closing costs come with a conventional construction loan in Broward County?

Accepted Answer

The usual suspects — origination, appraisal, title, recording, prepaid taxes and insurance — plus construction-specific items like draw inspection fees and the slightly higher appraisal cost for plan review. The single-close advantage: you pay this once, not twice. Builder contributions can offset a chunk of it on Broward County contracts.

Question 46

Are escrows collected at closing in Broward County on a conventional construction loan?

Accepted Answer

Yes — escrows are collected at the initial closing, with homeowner's insurance activated and paid at modification. Taxes that come due during the build are handled by you directly until the escrow account takes over. In Broward County — including around Deerfield Beach and Fort Lauderdale — the same guideline applies.

Question 47

Can my closing costs be financed in Broward County on a conventional construction loan?

Accepted Answer

If you own your lot, yes — closing costs can be financed through lot equity as long as the loan stays within 90% of value. Land you've held becomes working capital for the deal. In Broward County — including around Hollywood and Margate — the same guideline applies.

Question 48

How long does approval take for a conventional construction loan in Broward County?

Accepted Answer

Pre-approval: usually a day or two. Full approval through closing: commonly 30–45 days once your builder's package and plans are complete, since the appraisal reviews the full plan set. The critical path is almost always builder paperwork, not your file — which is why we start the Broward County builder registration on day one.

Question 49

How does the construction term affect my cash to close in Broward County on a conventional construction loan?

Accepted Answer

Directly — the term drives the interest and soft-cost figures built into the transaction, so a 12-month selection costs more upfront than a 6-month one. We size the term to your builder's actual schedule, not a guess. In Broward County — including around Coral Springs and Dania — the same guideline applies.

Question 50

Can my conventional loan terms change between closing and completion in Broward County?

Accepted Answer

Only in the narrow ways the guidelines allow — under Freddie Mac's One-Time Close, a single modification can adjust the balance for documented cost increases or convert an ARM to fixed, and terms may be modified only once. Otherwise, what you signed is what you keep. Nothing changes without your signature on a Broward County file.

Question 51

What happens between clear-to-close and closing day in Broward County on a conventional construction loan?

Accepted Answer

Underwriting clears the credit file, the construction department gives final project approval, and closing figures are prepared from the verified construction numbers. At closing you bring down payment, escrows, and closing costs — lot equity can offset both. In Broward County — including around Margate and Pembroke Pines — the same guideline applies.

Question 52

What actually happens at a conventional construction loan closing in Broward County?

Accepted Answer

You sign the permanent note and mortgage with a construction addendum, the land is purchased or refinanced, initial funds position for the first draw, and title records the lender in first place. From that moment your terms are set and your builder is cleared to pull permits. It's one sitting — Broward County families are usually done within the hour.

Question 53

Can I switch lenders mid-process and keep my appraisal in Broward County on a conventional construction loan?

Accepted Answer

No — appraisal transfers aren't accepted on this program; the as-completed appraisal is ordered fresh with the finalized contract and plans. If you're unhappy where you are, the restart is smaller than it feels. We'll show you the real timeline. In Broward County — including around Dania and Deerfield Beach — the same guideline applies.

Question 54

What are lien waivers and why do they matter on my build in Broward County on a conventional construction loan?

Accepted Answer

Every draw, your builder signs a waiver confirming subcontractors and suppliers are paid for that stage — so nobody can later slap a lien on your Broward County home for a bill the builder skipped. Florida's construction lien law makes this protection essential. The draw process collects waivers automatically; it's the paperwork that guards your title.

Question 55

How is underwriting different for a conventional construction loan in Broward County?

Accepted Answer

Your personal qualification is identical to any conventional loan. What's added is project underwriting: the builder's credentials, the contract, the cost breakdown, and an appraisal from plans. Think of it as approving the borrower and the build. Strong files with weak project documents stall — so we perfect both halves of every Broward County submission.

Question 56

What is the project calculation and why does it come first in Broward County on a conventional construction loan?

Accepted Answer

It's the structured math of your entire deal — contract price, land, soft costs, interest, and term — run before underwriting so your loan amount and cash-to-close are right the first time. Deals structured correctly upfront don't blow up at the closing table. In Broward County — including around Coconut Creek and Coral Springs — the same guideline applies.

Question 57

Conventional vs USDA construction loan in Broward County — how do I choose?

Accepted Answer

USDA One-Time Close offers $0 down but requires an eligible rural address and household income under the county limit. Conventional works at any Broward County address with no income cap, allows second homes and investments, and its PMI cancels. Rural site plus moderate income? USDA is hard to beat. Otherwise conventional carries the day. Dual-eligible families should see both priced together.

Question 58

Conventional vs VA construction — what's the difference in Broward County?

Accepted Answer

VA is exclusively for eligible veterans and service members: $0 down and no monthly mortgage insurance, an unbeatable combination when it applies. Conventional is open to everyone and adds second-home and investment builds VA doesn't cover. Veterans in Broward County should almost always look at VA first — and we'll show conventional beside it so the choice is proven, not assumed.

Question 59

What happens if my project cost exceeds the conforming limit in Broward County on a conventional construction loan?

Accepted Answer

Above $832,750 (the 2026 one-unit limit in Broward County), the loan becomes jumbo construction — still very financeable, with larger down payments and full-documentation underwriting. Sometimes trimming the budget under the limit or applying more land equity keeps you conforming. We model both structures so you choose with the full picture.

Question 60

Conventional vs FHA construction loan in Broward County — which fits me?

Accepted Answer

FHA takes 3.5% down with flexible credit but carries mortgage insurance that typically lasts the life of the loan. Conventional starts at 3–5% down, allows second homes and investment builds, and its PMI cancels as equity grows. Stronger credit and any land equity usually tip the math conventional in Broward County. We price both side by side and let the numbers decide.

Question 61

Building vs buying an existing home in Broward County — how does financing compare on a conventional construction loan?

Accepted Answer

Financing effort is nearly identical with a One-Time Close — one approval, one closing, just like a purchase. Building adds the builder package and a longer runway but delivers new-code construction, current wind mitigation (real insurance savings in Florida), zero deferred maintenance, and exactly the floor plan you want. With Broward County resale inventory aging, the build math deserves a genuine look.

Factor	Conventional	FHA	USDA	VA
Down payment	5% common	3.5%	$0	$0
Where in Broward County	Anywhere	Anywhere	Eligible areas only	Anywhere
Income cap	None	None	Yes — county limit	None
Monthly mortgage insurance	PMI — cancels at equity	0.55% typical, often loan-life	0.35% annual fee	None
2026 ceiling	$832,750	$645,000	No set max (income-driven)	No limit, full entitlement
Upfront government fee	None	1.75% MIP	1% guarantee fee	Funding fee (waivable)

Conventional Construction Loans in Broward County — Build Anywhere, PMI That Cancels

Key facts about the conventional construction loan in Broward County

Conventional builds in all of Broward County

Is conventional the right door for your Broward build?

USDA in Broward County

FHA in Broward County

VA in Broward County

Broward County offices you'll actually use during a build

Building Department

Planning Department

Property Appraiser

GIS / Parcel Viewer

Health Department

Water Management District

Clerk of Court

Utilities Authority

Settling into Broward County — every office in one place

County Government

Tax Collector

School District

Supervisor of Elections

Sheriff's Office

Chamber of Commerce

Visitors Bureau

Local Newspaper

Wikipedia & County Facebook

Broward County conventional construction loan FAQ — 61 answers from the guidelines

Program Basics7 Q

Eligibility & Credit8 Q

Property, Land & Site6 Q

Construction & Builders20 Q

Fees, Money & Timing8 Q

Process, Docs & Underwriting7 Q

Comparisons5 Q

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Conventional Construction Loans by Florida County

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