FINANCING YOUR HOME FROM THE GROUND UP
Build Your Dream Home with Construction Financing
Whether you’re building your dream home from the ground up or completing a major renovation, construction financing can help you turn your plans into reality with funding designed around the building process.
Start Your ApplicationCONSTRUCTION LOANS EXPLAINED
Finance the Build, Not Just the Finished Home
Construction loans are designed to finance the building of a new home or, depending on the program, a major renovation. Unlike a traditional mortgage that finances a completed property, construction financing typically provides funds in stages as the project progresses.
Because the home is still being built, the loan process may involve additional documentation related to the builder, construction plans, budget, timeline, property, and borrower qualifications.
CONSTRUCTION LOAN HIGHLIGHTS
✓ Financing Designed for New Home Construction
✓ Funds May Be Released in Stages as Construction Progresses
✓ Options May Be Available for Construction-to-Permanent Financing
✓ Financing May Include the Homesite and Construction Costs
✓ Builder, Plans & Budget Are Reviewed as Part of the Process
✓ Loan Options Vary Based on the Project & Borrower Qualifications
Construction loan programs, terms, and eligibility requirements vary by lender and project. Builder approval, construction plans, budget, property details, borrower qualifications, and other requirements may apply.
CONSTRUCTION LOAN OPTIONS
Choose the Right Financing Structure for Your Build
Construction financing isn’t one-size-fits-all. Depending on your project, timeline, and long-term financing goals, different loan structures may be available to help fund the construction of your new home.
Construction-to-Permanent Financing
This option combines construction financing and the permanent mortgage into a single loan structure. Funds are typically released in stages during construction, and after the home is completed and applicable requirements are satisfied, the loan transitions into long-term mortgage financing.
Stand-Alone Construction Financing
This option provides financing specifically for the construction phase of the project. Once construction is complete, separate permanent mortgage financing is typically needed to pay off the construction loan, which may involve a second loan application and closing.
Major Renovation Financing
Depending on the loan program and scope of the project, construction financing may also be available for substantial renovations or improvements to an existing home. The financing structure and requirements can vary based on the planned work, property, contractor, budget, and borrower qualifications.
Land & Home Construction
Depending on the loan program and your situation, financing may be structured to include an eligible homesite along with the cost of building the new home. Requirements can vary based on the land, construction plans, builder, budget, and borrower qualifications.
YOUR CONSTRUCTION LOAN ROADMAP
How the Construction Loan Process Works
Construction financing involves a few more moving parts than financing a completed home. From reviewing your plans and builder to funding construction in stages, I’ll help you understand the process and what to expect along the way.
01
Plan Your Project
Define your building plans, estimated budget, timeline, and property details. Having a clear project scope helps establish the foundation for reviewing your construction financing options.
02
Review Your Financing Options
Review your income, assets, credit, debts, project details, and financing goals to determine which construction loan options may fit your situation.
03
Finalize Your Builder & Plans
Your builder, construction plans, specifications, budget, and timeline are reviewed as part of the loan process. Additional documentation may be required depending on the project and loan program.
04
Complete Loan Approval
Your financial documentation, property information, construction details, appraisal, and other required items are reviewed as the loan moves through processing and underwriting.
05
Build & Fund in Stages
As construction progresses, funds are typically released through a series of draws based on completed work and applicable inspection or documentation requirements.
06
Complete the Home & Move In
Once construction is finished and applicable requirements are satisfied, the project reaches completion and your financing moves into its next phase based on the loan structure you selected.
PREPARING FOR A CONSTRUCTION LOAN
What You’ll Need for a Construction Loan
Construction loans typically require more project documentation than financing a completed home. Having your builder, plans, budget, and financial information organized early can help you understand what may be needed as your loan moves through the review process.
Builder Information
Information about your builder or contractor may be required as part of the loan review. Depending on the program, the builder may need to meet specific lender requirements before construction can begin.
Construction Plans & Specifications
Detailed building plans and specifications help define what will be built, the materials involved, and the overall scope of the project. These documents may be reviewed as part of the construction loan approval process.
Construction Budget & Timeline
A detailed construction budget and projected timeline help establish the expected cost and schedule of the build. These details may also be used to help structure the loan and planned construction draws.
Borrower Financial Documents
Just like other mortgage financing, you may need to provide documentation related to your income, assets, credit, debts, and other financial information used to evaluate your ability to qualify for the loan.
READY TO BUILD YOUR HOME?
Let’s Turn Your Construction Plans Into a Financing Strategy
Whether you already have a builder and plans in place or you’re just beginning to explore building a home, I’ll help you understand your construction financing options and what may be needed to move your project forward.
