Construction Loan Programs

Understanding the different types of construction loans is the first step toward financing your custom home build. Each program has unique requirements, benefits, and trade-offs depending on your situation.

Available Program Types

Construction-to-Permanent (C2P)

One-close loan that converts from a construction line to a permanent mortgage when building is complete. The most popular option for custom home builds.

Detailed guide coming soon

FHA Construction Loans

Government-backed construction financing with lower down payment requirements (as low as 3.5%) for qualifying borrowers.

Detailed guide coming soon

VA Construction Loans

Zero-down construction financing for eligible veterans, active-duty service members, and surviving spouses.

Detailed guide coming soon

Owner-Builder Loans

Financing for borrowers who act as their own general contractor. Requires demonstrated construction experience.

Detailed guide coming soon

Lot & Land Loans

Financing to purchase land before construction begins. Can often be rolled into a future construction loan.

Detailed guide coming soon

Stand-Alone Construction

Short-term construction-only financing that requires a separate permanent loan at completion. Offers flexibility but involves two closings.

Detailed guide coming soon

How Construction Loans Differ From Traditional Mortgages

Unlike a conventional mortgage that funds the purchase of an existing home, construction loans finance the building process itself. Funds are disbursed in stages (draws) as work is completed, and you typically pay interest only on the amount drawn during construction. Once the build is complete, the loan either converts to a permanent mortgage or must be refinanced.

Construction loans generally require higher down payments (20-25%), stronger credit profiles, and more documentation than standard mortgages — including approved plans, builder contracts, and detailed budgets.

Related Resources

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