Construction Loans
Build from the ground up. Then roll into a mortgage.
A construction loan finances the ground-up building of a new home, disbursing funds in stages as construction milestones are completed. With a construction-to-permanent structure, the loan converts automatically into a standard mortgage once the home is finished: one application, one closing, one set of closing costs.
Who this is for
Is this your loan?
Buyers building a custom home or working with a builder on new construction.
Not sure? That's what we're here for. We price every eligible program against this one, so the comparison is done for you.
How does a construction loan work?
A construction loan finances the ground-up building of a new home, disbursing funds in stages as construction milestones are completed. With a construction-to-permanent structure, the loan converts automatically into a standard mortgage once the home is finished: one application, one closing, one set of closing costs.
What does a construction loan include?
- Interest-only payments during the build phase
- Funds released in draws as construction progresses
- One-time close option converts automatically to permanent financing
- Available for owner-builder and licensed general contractor projects
Who is a construction loan best for?
Best for: buyers building a custom home or working with a builder on new construction.
Construction Loans FAQs
Asked constantly. Answered honestly.
What is a construction loan and how does it work?
A construction loan finances the ground-up building of a home, releasing funds in draws as work is completed rather than as a single lump sum. With a construction-to-permanent loan, it automatically converts into a standard mortgage once the home is finished, so you only go through one application and one closing.
What is a rehab or renovation loan?
A rehab (renovation) loan combines the cost of purchasing (or refinancing) a home with the cost of renovating it into a single loan, so you don't need a separate loan for repairs. Funds for the renovation portion are typically disbursed in stages as the work is completed.
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