Get a no-cost quote on construction financing and start building your custom home.
Construction loans provide financing to build a new home from the ground up. Unlike traditional mortgages that disburse funds at closing, construction loans release money in stages as your home is built. You typically pay interest only on the amount disbursed during construction, then convert to a permanent mortgage once the home is complete.
Whether you’re building your dream primary residence or a custom property, construction financing makes it possible to create a home exactly to your specifications. Work with a builder of your choice on land you own or are purchasing, and watch your vision become reality.
We’re here to make the construction loan process easier, with tools and expertise to guide you along the way, starting with our no-cost Construction Loan Qualifier.
Here’s how our construction loan process works:
Not sure if you qualify? Our loan officers can review your construction plans and help you understand which construction financing options may be available to you.
Some lenders offer owner-builder construction loans, but requirements are strict. You’ll need to demonstrate construction experience, qualifications, and project management capability. Most borrowers work with licensed contractors for smoother approval and project completion.
You’re responsible for costs exceeding your loan amount. This is why including a 10-20% contingency budget is important. If costs exceed your budget significantly, you may need to reduce the scope or secure additional financing from your own funds.
Construction loans release funds in stages called draws as work is completed. Your lender inspects progress at each stage before releasing the next payment. Common draw stages include foundation, framing, mechanicals, drywall, finishes, and final completion with certificate of occupancy.
Not necessarily. Some construction loans include land purchase, while others require you to own the land outright before applying. Having equity in the land strengthens your application and may improve your terms.
A construction-to-permanent loan combines construction financing and permanent mortgage into one loan with a single closing. This saves time, money, and closing costs compared to separate construction-only and permanent loans requiring two closings.
From application to closing typically takes 4-6 weeks. The construction phase usually lasts 6-12 months depending on the project size and complexity. Total timeline from initial planning to completed home averages 14-24 months.
Construction loans subject to credit approval. Rates, program terms, and conditions are subject to change without notice. Detailed construction plans, builder information, and itemized budgets required. Builder must be licensed and insured. Property appraisal based on completed value. Not all applicants will qualify. Construction must be completed within loan term. Minimum credit score, down payment, and reserve requirements apply. This is not a commitment to lend.
