Build or Renovate
Financing options may be available for new construction, custom builds, or major renovation projects.
Project-Based Financing
The loan is reviewed around the construction plan, budget, builder, and property details.
Draws During Construction
Funds are typically released in stages as work is completed and verified.
Why borrowers choose construction loans
Construction financing can help buyers and homeowners turn a building plan into a finished home with a loan structure designed around the project.
Finance the build
Construction loans are designed to help cover eligible costs tied to building or significantly improving a home.
Structured around the project
The lender reviews the construction budget, plans, builder, property, and borrower profile together.
Funds released in stages
Money is typically advanced through construction draws as the project progresses.
Different closing structures
Depending on the program, options may include one-time close or two-time close construction financing.
Who this loan may be a good fit for
Construction financing may be worth considering if you are building a new home, buying land and building, or planning a major renovation that requires project-based lending.
- Buyers building a new primary residence
- Borrowers purchasing land and building
- Homeowners planning a major renovation
- Custom home buyers
- Borrowers working with a qualified builder
- Buyers who need financing tied to a construction budget
What to expect
Construction loans require more planning than a standard purchase loan. We help you understand the process, documentation, and moving parts before you get too far down the road.
Builder and project review
The builder, plans, specifications, budget, and timeline are reviewed as part of the loan process.
Appraisal based on completed value
The appraisal often considers the expected value of the home once construction is complete.
Construction draw process
Funds are generally released in phases as work is completed and inspected.
More documentation upfront
Construction financing usually requires more early documentation than a typical home purchase loan.
Construction loan FAQs
What is a construction loan?
A construction loan is financing designed to help fund the building of a new home or a major renovation project.
How are funds released?
Funds are typically released in draws as construction milestones are completed and verified.
Do I need a builder before applying?
In most cases, the builder, project plans, budget, and timeline are important parts of the loan review.
Can construction loans be used for renovations?
Some construction or renovation loan options may be available depending on the project, property, and loan program.
Need help getting started?
We can help you review construction loan options clearly. Call us, text us, or complete our secure online mortgage application.