Frequently Asked Questions About Construction Loans
What is CustomHomeLenders.com?
CustomHomeLenders.com connects homeowners planning to build a custom home with construction loan specialists who fund new construction projects. The service is free for homeowners.
What is a construction loan?
A construction loan is a short-term loan that funds the building of a new home. Unlike a traditional mortgage, a construction loan releases funds in draws as construction progresses.
What is the difference between a one-time-close and two-time-close construction loan?
A one-time-close loan combines the construction loan and the permanent mortgage into a single closing. A two-time-close loan involves two separate closings with more flexibility but higher costs.
How much do I need for a down payment on a construction loan?
Most construction loans require a down payment of 20 to 25 percent of the total project cost, including land. Land equity may count toward this requirement.
How do I estimate my custom home build cost before applying for a construction loan?
CustomHomeQuote.com offers a free 6-step cost estimator for custom home construction based on your location, square footage, and finish level.
How do I find a custom home builder?
CustomHomeAdvisor.com is a directory of verified custom home builders. Search by city, read profiles, and connect with builders accepting new projects.
Can I read reviews of builders before selecting one?
Yes. CustomHomeBuilderReviews.com provides verified reviews, Google ratings, and reputation data for custom home builders.
What states do you serve?
We match homeowners with construction loan specialists across the United States, with particular depth in Oregon, Washington, Idaho, Arizona, Texas, Tennessee, Colorado, Florida, Nevada, Utah, Georgia, and North Carolina.