Construction loan.
Build from the ground up with financing shaped to the build. How the draws work, what happens at completion and what to plan for, explained first.
Build from the ground up with financing shaped to the build. How the draws work, what happens at completion and what to plan for, explained first.
A short-term loan that pays your builder in stages as the work is inspected. When the home is finished, it converts to or is replaced by a permanent mortgage.
Building a home on land you own or are buying, or replacing a structure entirely.
Construction loans ask for detailed plans, a licensed builder and more down than a standard purchase. Your loan officer gives you the checklist.
Where you are building, what you are building and who is building it.
A one-time close that becomes your mortgage against a two-step construction then permanent loan.
Draws are released as the build is inspected. At completion the permanent loan takes over. Support continues after.
You own land or are buying it with the build.
You have drawings and a licensed builder, or are close to it.
Construction loans ask for more down than a standard purchase.
You can carry the timeline and the inspections that come with a build.
If you are buying a new home from a builder who finances the construction, a standard purchase loan may be all you need. Your loan officer confirms.
In draws tied to construction milestones, each verified by an inspection before the builder is paid.
Typically interest only on the amount drawn so far. Full payments begin when the permanent loan takes over.
A one-time close converts to your mortgage automatically. A two-step loan is refinanced into a permanent mortgage at completion. Your loan officer explains the trade offs.
Yes. Its value can often count toward your down payment.
Rarely. Most programs require a licensed builder. Your loan officer tells you what applies.
Tell us about the land, the plans and the builder. A loan officer compares the loan structures before anything is offered. Pre-qualifying will not affect your credit score.
Pre-qualify for a construction loan
