Finance Your New Home Build With Flexible Draw-Based Funding
Construction loans provide financing to build a new home from the ground up. Unlike traditional mortgages that disburse funds at closing, construction loans release money in stages as your home is built. You typically pay interest only on the amount disbursed during construction, then convert to a permanent mortgage once the home is complete.

Whether you’re building your dream primary residence or a custom property, construction financing makes it possible to create a home exactly to your specifications. Work with a builder of your choice on land you own or are purchasing, and watch your vision become reality.

We’re here to make the construction loan process easier, with tools and expertise to guide you along the way, starting with our FREE Construction Loan Qualifier.

We’ll help you clearly see differences between construction loan options, allowing you to choose the right one for you.

The Construction Loan Process
Here’s how our construction loan process works:

• Secure land, select a licensed builder, and develop detailed construction plans with itemized budget
• Submit your application with financial documents, construction plans, builder information, and project timeline
• Complete appraisal based on projected value of finished home and lender underwriting review
• Close on your construction loan and begin building with funds released according to draw schedule

Key Benefits:

• Build your dream home customized to your exact preferences
• Interest-only payments during construction phase lower initial costs
• Single-close construction-to-permanent loans save time and money
• Lock your permanent mortgage rate at initial closing

Common Questions About Construction Loans

Can I act as my own general contractor?
Some lenders offer owner-builder construction loans, but requirements are strict. You’ll need to demonstrate construction experience, qualifications, and project management capability. Most borrowers work with licensed contractors for smoother approval and project completion.

What if construction costs more than expected?
You’re responsible for costs exceeding your loan amount. This is why including a 10-20% contingency budget is important. If costs exceed your budget significantly, you may need to reduce the scope or secure additional financing from your own funds.

How do construction draws work?
Construction loans release funds in stages called draws as work is completed. Your lender inspects progress at each stage before releasing the next payment. Common draw stages include foundation, framing, mechanicals, drywall, finishes, and final completion with certificate of occupancy.

Do I need to own the land first?
Not necessarily. Some construction loans include land purchase, while others require you to own the land outright before applying. Having equity in the land strengthens your application and may improve your terms.

What is a construction-to-permanent loan?
A construction-to-permanent loan combines construction financing and permanent mortgage into one loan with a single closing. This saves time, money, and closing costs compared to separate construction-only and permanent loans requiring two closings.

How long does the construction loan process take?
From application to closing typically takes 4-6 weeks. The construction phase usually lasts 6-12 months depending on the project size and complexity. Total timeline from initial planning to completed home averages 14-24 months.

Your Construction Loan Could Be Fully Funded 30 Days From Now

• Expert Guidance — Construction loan specialists who understand the building process and guide you through every step from application to completion
• Competitive Rates — Flexible financing options with rates designed to make your custom home affordable and achievable
• Builder Flexibility — Work with your choice of qualified, licensed builders who meet lender requirements and have proven track records
• Streamlined Process — Efficient underwriting and draw inspection process designed to keep your construction project moving forward on schedule
• Single-Close Option — Construction-to-permanent loans with one application, one closing, and one set of closing costs saving you time and money
• Rate Protection — Lock your permanent mortgage rate at initial closing, protecting you from rate increases during construction

Build Your Dream Home From the Ground Up
Get a no-cost quote on construction financing and start building your custom home.

Construction loans subject to credit approval. Rates, program terms, and conditions are subject to change without notice. Detailed construction plans, builder information, and itemized budgets required. Builder must be licensed and insured. Property appraisal based on completed value. Not all applicants will qualify. Construction must be completed within loan term. Minimum credit score, down payment, and reserve requirements apply. This is not a commitment to lend.