🏗 Construction Loans

💬 “Building your dream home? A construction loan gives you the funding to bring it to life — from the ground up.”

What Is a Construction Loan?

A construction loan is a short-term mortgage designed to cover the cost of building or majorly renovating a home. Instead of receiving the full loan amount upfront, funds are disbursed in phases — known as “draws” — as construction progresses.

Once construction is complete, most borrowers either refinance into a permanent mortgage or transition into a construction-to-permanent loan that automatically converts.

🧱 How It Works

  • Funds are released in stages tied to construction milestones (foundation, framing, roofing, etc.)

  • Interest is typically charged only on the amount disbursed

  • An appraisal is often based on the “as-completed” value of the property

  • Borrowers usually make interest-only payments during construction

  • Final financing must be secured upon completion (unless using a one-time close loan)

📋 What You’ll Need to Apply

Before we can move forward with a construction loan, you’ll need to gather the following documents:

Personal Documents:

  • Social Security number and valid ID

  • 2 years of W-2s and tax returns

  • Recent pay stubs

  • 2 months of bank statements

Property & Construction Documents:

  • Fully executed purchase contract (if buying land separately)

  • Building plans and blueprints

  • Detailed construction budget from a licensed contractor or builder

  • Timeline or construction schedule

  • Contractor license and insurance

  • Site information (lot description, address, plat map)

🧠 Questions You’ll Need to Answer

To assess eligibility and build a customized loan option, we’ll walk through the following:

  • Are you using a licensed builder or building as an owner-builder?

  • Do you already own the land or will it be purchased with the loan?

  • What is the estimated total cost of construction?

  • How much are you planning to put down (cash or land equity)?

  • Is this your primary residence, second home, or investment property?

  • Are you seeking a one-time close loan (construction-to-permanent) or a separate construction + refinance setup?

🔍 Construction-to-Permanent vs. Two-Time Close

Feature One-Time Close Two-Time Close
Number of Closings One Two (construction loan + final loan)
Interest Rate Locked Upfront Re-locked at end of construction
Appraisal Required Once Twice
Closing Costs Paid once Paid twice
Simpler Process? ✅ Yes ❌ More complex

🛠 What Can You Build?

Construction loans may be used for:

  • New primary residences

  • Second homes

  • Detached ADUs (accessory dwelling units)

  • Major renovations or tear-downs

  • Modular and manufactured homes (case by case)

💬 Let's Build Your Loan

We’ll guide you through every step — from land acquisition to permanent financing. Whether you're building your dream home or rehabbing a fixer-upper, we’ll help you secure the structure, funding, and timeline you need.

🔵 [Start Your Application]
📞 [Talk to a Construction Loan Specialist]
📎 [See What Documents You’ll Need]

 

🔒 Disclosure

This is not a commitment to lend. All construction loan programs are subject to credit approval, builder qualification, and underwriting guidelines. Construction timeline, budget, and final valuation may impact loan eligibility. Not all applicants will qualify. Additional documentation, inspections, and conditions may apply.

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