Question 1

Fannie Mae vs Freddie Mac — does it matter to me in Palm Beach 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 Palm Beach County file to whichever set fits your situation. That routing is our job, not your worry.

Question 2

What is HomeReady and could it help me build in Palm Beach 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 Palm Beach County buyers, it can pair with new-construction purchases too.

Question 3

What is a conventional loan in Palm Beach County?

Accepted Answer

A mortgage that isn't government-insured — no FHA, VA, or USDA backing — typically sold to Fannie Mae or Freddie Mac under their guidelines. Down payments start at 3–5%, mortgage insurance is cancellable, and there are no income caps or geography rules. It's the most widely used financing in Palm Beach County, for existing homes and new construction alike.

Question 4

Can first-time buyers use a conventional construction loan in Palm Beach County?

Accepted Answer

Absolutely — and there's a bonus: the 97% LTV option (just 3% down) on a fixed-rate loan requires at least one borrower to be a first-time buyer. Pair that with gifted funds or family land and a first home can be a brand-new build near Loxahatchee or North Palm Beach. First-time doesn't mean existing-home-only in Palm Beach County.

Question 5

Are conventional and conforming the same thing in Palm Beach 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 Palm Beach County for 2026. Every conforming loan is conventional; a conventional loan above the limit is a jumbo.

Question 6

Should I choose a fixed rate or an ARM for my build in Palm Beach 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 Palm Beach 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 7

Who is a Conventional loan the strongest fit for in Palm Beach County?

Accepted Answer

Buyers with a 680+ score and roughly 10% or more to put down — especially anyone building a second home, wanting removable mortgage insurance, or sitting above USDA income limits. If that sounds like you, Conventional deserves a first look. In Palm Beach County — including around Canal Point and Delray Beach — the same guideline applies.

Question 8

Can a co-signer who won't live in the home help me qualify in Palm Beach 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 Palm Beach County is the classic setup. The co-borrower shares full legal responsibility, so it's a family decision worth making with clear eyes.

Question 9

Can self-employed borrowers get conventional construction loans in Palm Beach County?

Accepted Answer

Yes — self-employment is a documentation path, not a penalty. Generally two years of business history (sometimes one, with the right profile), tax returns, and stable or rising income. Depreciation and other paper write-offs often get added back, so qualifying income can exceed what your bottom line suggests. Palm Beach County contractors and business owners build with conventional loans routinely.

Question 10

What's the maximum debt-to-income ratio on a conventional loan in Palm Beach 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 Palm Beach County budget is honest from day one.

Question 11

Are there income limits on conventional loans in Palm Beach 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. Palm Beach County buyers fit somewhere on that spectrum, and we place you deliberately.

Question 12

How long after bankruptcy or foreclosure can I get a conventional loan in Palm Beach 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 Palm Beach County build.

Question 13

Is manual underwriting available on the construction program in Palm Beach County on a conventional construction loan?

Accepted Answer

No — the file must have an automated approval through Fannie Mae's Desktop Underwriter. That makes the pre-qualification run we do upfront genuinely meaningful: the same engine that decides is the one we test. In Palm Beach County — including around Jupiter and Lake Harbor — the same guideline applies.

Question 14

Do I need cash reserves for a conventional construction loan in Palm Beach 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 Palm Beach County scenario before you commit.

Question 15

Can rental or ADU income help me qualify in Palm Beach County on a conventional construction loan?

Accepted Answer

Yes — on a 2–4 unit build, projected rent from the other units counts as qualifying income per the appraiser's rent schedule. Accessory dwelling unit rent can be considered too under the right program. Build a duplex near Palm Beach, and the tenant's rent is helping you qualify before a single brick is laid in Palm Beach County.

Question 16

Can I include an ADU or in-law suite in my conventional build in Palm Beach 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 Palm Beach County plays. Zoning is the gatekeeper, so we confirm the parcel allows it before plans are drawn.

Question 17

Can I finance a tiny home in Palm Beach 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 Palm Beach County — including around Canal Point and Delray Beach — the same guideline applies.

Question 18

Can I build a rental property with a conventional construction loan in Palm Beach County?

Accepted Answer

Yes — investment-property construction works with 15% down on a one-unit build (25% on 2–4 unit investment). Projected market rent can support qualification, and building new often beats buying tired inventory on maintenance and insurability in Palm Beach County. It's the investor lane no government program offers.

Question 19

Can I build a second home with a conventional construction loan in Palm Beach 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 Palm Beach County runs on conventional financing, full stop.

Question 20

Is there an acreage limit for conventional loans in Palm Beach 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 Palm Beach 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 21

Can I build anywhere in Palm Beach County with a conventional loan?

Accepted Answer

Yes — conventional financing has no geographic eligibility maps. City lot in West Palm Beach, suburban parcel near Belle Glade, or acreage past Boca Raton — all fair game, provided zoning allows residential use and the appraiser can find comparable sales. That freedom is a core conventional advantage over USDA's rural-only rules.

Question 22

Is someone inspecting the quality of my build in Palm Beach County on a conventional construction loan?

Accepted Answer

Every draw requires an independent third-party inspection with photos and a line-item completion report before funds release. It's progress verification rather than a code inspection — your local building department in Palm Beach County handles code — but it means a professional set of eyes is on your project at every stage.

Question 23

What is the cost breakdown form and why does it matter so much in Palm Beach County on a conventional construction loan?

Accepted Answer

It's the line-by-line budget of your entire build — sitework through final finish — signed by your builder. The appraisal leans on it, the loan amount is sized from it, and the draw schedule is built from it. A sloppy cost breakdown causes more construction-loan delays than any other document. We scrub it with your Palm Beach County builder before underwriting sees it.

Question 24

Who pays for cost overruns during construction in Palm Beach County on a conventional construction loan?

Accepted Answer

It depends on your contract and the cause. A fixed-price (turnkey) contract puts most overrun risk on the builder; a cost-plus contract leaves it with you. The contingency reserve inside the loan absorbs the first layer either way. This is why we push Palm Beach County clients toward fixed-price contracts with a healthy contingency — the risk is decided before it happens.

Question 25

How much do I need down for a conventional construction loan in Palm Beach County?

Accepted Answer

As little as 5% down on a primary residence in most cases, and qualified first-time buyers may go to 3% down (97% LTV) on a fixed-rate single-close build. Second homes start at 10% down and investment builds at 15%. In Palm Beach County, land equity you already hold can count toward that requirement.

Question 26

Can well, septic, and driveway costs be financed in the conventional loan in Palm Beach County?

Accepted Answer

Yes — site preparation is an eligible use of construction funds, and that includes the well, septic system, driveway, utility runs, clearing, and grading. Rural Palm Beach County parcels outside West Palm Beach often need all of it, and it all rides inside the one loan with the rest of your budget.

Question 27

What is a conventional One-Time Close construction loan in Palm Beach 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 Palm Beach County — including around Canal Point and Delray Beach — it means one approval, one set of closing costs, and no second qualification after the build.

Question 28

I already own my lot in Palm Beach County — does that help my down payment on a conventional construction loan?

Accepted Answer

Yes, significantly. The equity in your land counts toward your down payment on a conventional construction loan. And if you've owned the lot for 12 months or more before closing, Fannie Mae lets the loan be based on the as-completed appraised value rather than your cost — which often means little to no cash needed at closing on a Palm Beach County build.

Question 29

Does my builder have to be approved for a conventional construction loan in Palm Beach County?

Accepted Answer

Yes — your builder must be licensed, insured, and registered with our construction partner before funds can flow. It's a straightforward package: license, insurance certificates, references, and financials. Most established Palm Beach County builders complete it quickly, and we handle the coordination.

Question 30

Do conforming loan limits apply to construction loans in Palm Beach 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 Palm Beach 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 31

What if my credit score drops during construction in Palm Beach County on a conventional construction loan?

Accepted Answer

If requalification is triggered, a lower score can affect your permanent terms — which is exactly why we coach you to protect your credit from closing day to completion. Steady credit in, locked terms out. In Palm Beach County — including around Belle Glade and Boca Raton — the same guideline applies.

Question 32

How fast does my builder get paid after a draw request in Palm Beach County on a conventional construction loan?

Accepted Answer

Once the inspection confirms the work, funds are wired to the builder — often within 24 hours of approval, typically no more than a few days from request. Fast, predictable draws are why quality builders around West Palm Beach like working with this program.

Question 33

Why do builders in Palm Beach 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 West Palm Beach and Jupiter, that's a lower-risk, faster-certainty sale.

Question 34

How do construction draws work in Palm Beach County on a conventional construction loan?

Accepted Answer

Your builder completes a stage — foundation, framing, dry-in — and requests a draw. An inspector verifies the work is actually done, then funds are released for that stage. It repeats through completion. The draw schedule is agreed before closing, so everyone on your Palm Beach County build knows exactly when money moves.

Question 35

Are building permits required before draws in Palm Beach 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 Palm Beach County; the draw process simply verifies it happened.

Question 36

How is a conventional One-Time Close different from a bank construction line in Palm Beach County?

Accepted Answer

A traditional bank construction line is short-term, often variable, and ends with a balloon — you must find and qualify for a permanent mortgage all over again at completion. A conventional One-Time Close sets your permanent financing before construction starts. One approval, one closing, zero refinance risk at the end of your Palm Beach County build.

Question 37

Can construction start before the conventional loan closes in Palm Beach 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 Palm Beach County builders sometimes want to start early; the answer protects you both. Close first, build second.

Question 38

Does a DU approval mean my project is approved in Palm Beach County on a conventional construction loan?

Accepted Answer

Not by itself. Your credit file is underwritten through Fannie Mae's automated system, while the builder and project are reviewed separately by the construction department — and final project approval comes from them. Both green lights, then you close. In Palm Beach County — including around Jupiter and Lake Harbor — the same guideline applies.

Question 39

Can my rate improve if the market drops during construction in Palm Beach County on a conventional construction loan?

Accepted Answer

Possibly — within 30 days of the modification being signed, a float-down option can apply if the market has improved. The construction department runs the numbers to confirm it's viable. Locked protection on the way up, a window of opportunity on the way down. In Palm Beach County — including around Loxahatchee and North Palm Beach — the same guideline applies.

Question 40

What if the contract price changes before closing in Palm Beach County on a conventional construction loan?

Accepted Answer

Notify us immediately — the construction department recalculates the file so your closing figures stay accurate. Price changes before closing are manageable; surprises at the closing table are not. In Palm Beach County — including around Palm Beach and Palm Beach Gardens — the same guideline applies.

Question 41

Can I build a duplex or multi-unit with a conventional construction loan in Palm Beach 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 Palm Beach County wealth-building play. Investment-only multi-unit builds work too, with larger down payments.

Question 42

How long does approval take for a conventional construction loan in Palm Beach 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 Palm Beach County builder registration on day one.

Question 43

How does the construction term affect my cash to close in Palm Beach 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 Palm Beach County — including around Jupiter and Lake Harbor — the same guideline applies.

Question 44

Can my closing costs be financed in Palm Beach 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 Palm Beach County — including around Loxahatchee and North Palm Beach — the same guideline applies.

Question 45

Are points and temporary buydowns allowed on conventional loans in Palm Beach County?

Accepted Answer

Yes — discount points can permanently reduce your rate, and temporary buydowns (like 2-1 structures) can lower early payments, often funded by the builder as an incentive. On purchase-structured construction loans these are available within the interested-party contribution caps. We run the break-even math for your Palm Beach County scenario so incentives are real, not cosmetic.

Question 46

What is PMI and when does it go away in Palm Beach County on a conventional construction loan?

Accepted Answer

Private mortgage insurance protects the lender when you put less than 20% down — and unlike FHA's mortgage insurance, it's temporary. It cancels automatically at 78% of original value, can be requested at 80%, and rising Palm Beach County values or a new-construction equity jump can end it sooner via appraisal. It's a bridge, not a life sentence.

Question 47

What does the extension fee cost if my build runs long in Palm Beach County on a conventional construction loan?

Accepted Answer

A monthly fee applies past the completion date, and the locked rate is forfeited to current market. The real cost of running long is the rate, not the fee — which is why the construction term you pick at closing deserves serious thought. In Palm Beach County — including around Canal Point and Delray Beach — the same guideline applies.

Question 48

How are builder deposits handled on a conventional build in Palm Beach 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 Palm Beach County custom build, keep pre-closing deposits modest until financing is locked.

Question 49

Can gift funds cover my down payment on a conventional loan in Palm Beach County?

Accepted Answer

Yes — gifts from family members can cover the entire down payment and closing costs on a primary residence, with a simple gift letter and paper trail. Combine a cash gift with gifted or discounted family land and a Palm Beach County build can launch with remarkably little of your own savings.

Question 50

Will my documents expire during the months of construction in Palm Beach County on a conventional construction loan?

Accepted Answer

Fannie Mae specifically allows extended document age on single-closing construction-to-permanent loans — credit and appraisal documents that would normally go stale are given room to accommodate build timelines. It's one of the quiet structural advantages of the single-close: your Palm Beach County approval is built to survive the calendar.

Question 51

What is the project calculation and why does it come first in Palm Beach 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 Palm Beach County — including around Belle Glade and Boca Raton — the same guideline applies.

Question 52

Is my conventional construction loan a purchase or a refinance in Palm Beach County?

Accepted Answer

It hinges on land ownership at closing: if you're acquiring the lot in the transaction, it's processed as a purchase; if you already own the Palm Beach County land, it's structured as a refinance that pays off any lot lien and funds construction. Same single-close experience either way — the classification mainly steers which guideline set and contribution rules apply.

Question 53

What actually happens at a conventional construction loan closing in Palm Beach 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 — Palm Beach County families are usually done within the hour.

Question 54

How do I get started on a Conventional construction loan in Palm Beach County?

Accepted Answer

Two minutes: tap See My Options and answer a few questions, or Talk to Our Team. We'll pre-qualify your credit and income, screen your lot, and start your builder's registration — the three tracks that decide how fast you break ground in Palm Beach County.

Question 55

Can my conventional loan terms change between closing and completion in Palm Beach 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 Palm Beach County file.

Question 56

How is underwriting different for a conventional construction loan in Palm Beach 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 Palm Beach County submission.

Question 57

Conventional vs VA construction — what's the difference in Palm Beach 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 Palm Beach County should almost always look at VA first — and we'll show conventional beside it so the choice is proven, not assumed.

Question 58

Conventional vs FHA construction loan in Palm Beach 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 Palm Beach County. We price both side by side and let the numbers decide.

Question 59

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

Accepted Answer

Above $832,750 (the 2026 one-unit limit in Palm Beach 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

New conventional construction loan vs HomeStyle Renovation in Palm Beach County — which do I need?

Accepted Answer

Ground-up on vacant land is construction-to-permanent territory. Buying or owning an existing Palm Beach County home that needs transformation — additions, gut remodel, hurricane hardening — is HomeStyle Renovation, one loan covering purchase-plus-rehab on the after-improved value. Tear-down-and-rebuild scenarios can go either way; we structure whichever fits the project.

Question 61

Building vs buying an existing home in Palm Beach 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 Palm Beach 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 Palm Beach 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 Palm Beach County — Build Anywhere, PMI That Cancels

Key facts about the conventional construction loan in Palm Beach County

Conventional builds in all of Palm Beach County

Is conventional the right door for your Palm Beach build?

USDA in Palm Beach County

FHA in Palm Beach County

VA in Palm Beach County

Palm Beach County offices you'll actually use during a build

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Planning Department

Property Appraiser

GIS / Parcel Viewer

Health Department

Water Management District

Clerk of Court

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Settling into Palm Beach County — every office in one place

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Tax Collector

School District

Supervisor of Elections

Sheriff's Office

Chamber of Commerce

Visitors Bureau

Local Newspaper

Wikipedia & County Facebook

Palm Beach 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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