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Use A Construction Loan
To Build or Restore Your Dream Home
Construction loans are typically short-term loans with a maximum of one year and have varying rates. These loans can be turned into a mortgage loan after your construction is complete!
Unless you are a contractor, building a home or a major remodel is something you would typically hire an expert to do. Your loan options and the financing process require a professional expert, too.
WHAT YOU NEED TO KNOW

In order to provide financing, lenders consider the following:

  • New homebuyers
  • Borrowers focused on home restoration
  • Builders contracted out by a buyer
DOCUMENTS YOU’LL NEED

Gather the following documents to ensure a smooth application process:

  • Asset Information
  • Proof of Recent Income
  • Tax Returns
  • Driver’s License
WHAT WE LOOK FOR

We help get you approved for the perfect loan. This is what we look for:

  • High credit
  • Detailed construction plan and budget
  • Working with a qualified builder
  • Your credit score and history
HERE ARE
Common FAQs
Let The Home Loan Experts
Help Secure Your Home.
WHAT IS THE PROCESS FOR A CONSTRUCTION LOAN?
After you decide on using a Construction Loan or the equity of your existing home to finance building your house, it is time to find a homebuilder. Contact your local chapter of the National Association of Home Builders to get recommendations, and ask your friends, family or known real estate agents who specialize in new home construction. When interviewing possible builders make sure they have experience in the type of residence that you want. Ask about their licensure and insurance, and make sure they’ve got a solid reputation within your community.

WHAT HAPPENS AFTER CONSTRUCTION IS COMPLETE?
After construction is completed — when a certificate-of-occupancy is issued, and contractors have been fully paid — the borrower’s loan will usually roll over into a mortgage loan. Some lenders will combine these two loans into a single 30-year loan with one closing. This is called construction-to-permanent financing.

However, these types of loans pose a greater loan-to-value risk on the bank so borrowers should be prepared to put down higher down payments or more collateral. If you own the land already, you can use that as collateral.

Our construction loan program offers competitive fees and rates, as well as flexible draw schedules, to keep you and your builder or contractor moving efficiently throughout the process.

WHAT IS THE MINIMUM DOWN PAYMENT REQUIRED?
The down-payment will depend on numerous factors, so saying it will always be a minimum of 20% is untrue. Depending on the equity of the land, the location, your situation – it can all change the down-payment required.

There are several ways you can finance your new construction, no matter the situation. Whether it’s financed by the builder or the buyer, we’ll help you find the one perfect for you and your lifestyle.

DO I NEED TO OWN THE LAND?
If you own the land, the equity will act as all or part of your down-payment. If you do not own the land, it will be purchased with the first draw after the construction loan is closed.
GET PRE-QUALIFIED
FOR A CONSTRUCTION LOAN TODAY!

A pre-qualification letter gives you a competitive advantage so your Realtor and Seller know you’re serious. Fill out the form and a Home Loan Expert will be in touch.

  • WHAT CAN WE HELP YOU WITH?
  • This field is for validation purposes and should be left unchanged.
A Passionate Team of Experts
Helping You Get The Loan You Need.
NOT READY TO PRE-QUALIFY?
Use our First Time Home Buyer Checklist to get a rundown of everything you need to make the process go as smoothly as possible.