Construction Loans
Finance the dream home that doesn't exist yet.
Financing to build a home from the ground up, with funds released in stages as construction progresses — including one-time-close options that roll directly into permanent financing.
Program Highlights
- One-time-close construction-to-permanent loans: a single closing covers both the construction phase and the permanent mortgage that follows — no second closing or re-qualification
- Interest-only payments during the construction phase, based only on funds drawn
- Funds disbursed in draws tied to construction milestones and inspections
- Can include land purchase, if not already owned, in the same loan
- Available for both builder-managed and, on some programs, owner-builder projects
- Converts automatically to a standard fixed or adjustable mortgage once construction completes
Best For
- Buyers building a custom home
- Owners of land ready to build
- Tear-down and rebuild projects
What You'll Need to Qualify
- Licensed, insured builder with approved plans and budget
- Detailed construction contract and timeline
- Typically 680+ credit
- 10–20% down on total project cost
Guidelines vary by lender and borrower profile. All loans subject to underwriting approval. Not a commitment to lend.
Good to Know
a one-time-close construction loan avoids the cost and risk of qualifying twice (once for construction, again for the permanent mortgage) — ask specifically for a one-time-close/construction-to-permanent structure to avoid a second underwriting and closing.
Common Questions
Do I need to already own the land?
No — land can often be included in the same construction loan if you don't already own it.
How do payments work during construction?
Typically interest-only, calculated only on the funds actually drawn so far, not the full loan amount.
Do I have to qualify twice — once for construction and again for the mortgage?
Not with a one-time-close construction-to-permanent loan — it's a single closing and single qualification covering both phases.