Ready to Build a Custom Home? Here’s the Loan That Makes It Possible.
- By Jim Blackburn
- on
- Tags: Blog Posts for - Emails 1-10
If you’ve searched for the perfect home and still haven’t found it, it may be time to build. A construction loan helps you finance a new home build—from the dirt to the driveway—whether you already own the land or are buying the lot with the loan.
What Is a Construction Loan?
A construction loan is a short-term or one-time-close mortgage that funds the cost of building a new home. It can include:
- Land purchase (or pay off an existing lot loan)
- Materials and labor
- Architect fees and permits
- Construction interest and reserves
- Final permanent mortgage rolled into one (if using a one-time close)
Types of Construction Loans:
- One-Time Close – Converts to a 30-year mortgage after completion
- Two-Time Close – Requires separate refinance after construction
- Owner-Builder Construction Loans – For licensed contractors building their own home
Want to keep things simple? Ask us about one-time close construction loans.
Who Should Use a Construction Loan?
- Families designing a custom home from scratch
- Buyers in rural or undeveloped areas
- Homeowners looking to tear down and rebuild
- Real estate investors building spec homes
- Owner-builders with GC licenses
Veterans? You may qualify for a VA Construction Loan with $0 down. Explore your options
How the Construction Loan Process Works
- Get pre-approved with your lender
- Choose your lot and builder
- Submit architectural plans and cost breakdown
- Loan is approved and funds disburse in draws during construction
- Home is built (usually 4–12 months)
- Loan converts to permanent mortgage
Builder must be licensed and approved by the lender—ask us if yours qualifies.
Typical Guidelines
- Down Payment: 5%–20% (based on program)
- Credit Score: 680+ preferred
- Loan Amount: Up to conforming or jumbo limits
- Loan Type: Conventional, FHA, VA, or jumbo construction
- Disbursement: Paid to builder in phases (foundation, framing, drywall, etc.)
Final Word: If You Can Imagine It, We’ll Help You Build It.
You don’t have to settle for “what’s available.” A construction loan empowers you to create the home you’ve always envisioned—and we’ll guide you every step of the way.
Book Your Construction Loan Strategy Call Now
Ready to Take Your First Step?
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Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
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Got a Few Questions First?
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