- Structure
- One-time close or two-time close
- During the build
- Interest-only payments on funds drawn
- Down payment
- Varies by program. Land equity can count
- What you need
- Approved builder, plans and a budget
What it is
A construction loan pays your builder in stages as the home goes up. With a one-time close loan, it converts to a regular mortgage when the home is finished, so you qualify once and pay one set of closing costs.
How it works with a broker
The lender approves you, your builder and the project: plans, specifications, budget and timeline. Money is released in draws after inspections at each stage, and you pay interest only on what has been drawn.
Construction programs differ on down payment, how the rate is locked and which builders qualify. I match the project to the lender and walk you and your builder through the draw schedule before you break ground.
Common questions
One-time close or two-time close?
One-time close means a single loan and a single closing. Two-time close uses a short-term construction loan followed by a separate mortgage, which adds a second closing but lets you shop the final loan once the home is complete.
Can I use land I already own?
Yes. Equity in your land can usually count toward the down payment.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.