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Build

One closing for the land, the build and the mortgage.

A construction-to-permanent loan funds the lot and the build, then converts to a regular 30-year mortgage when the home is finished. One application, one closing, one set of costs. During construction you pay interest only on what has been drawn.

StructureOne-time close, construction to permanent
Minimum down5% to 10% (3.5% FHA, 0% VA)
During the buildInterest-only on funds drawn
BuilderLicensed, approved by the lender
See if I qualifyCall (800) 511-3330
4.4 on Google · 214 reviewsNMLS 13988Licensed in 15 states + DC
Who it's for

Is a construction loan right for you?

  • Buyers who own a lot or are buying one
  • Families who cannot find the house they want and would rather build it
  • Veterans and FHA-eligible buyers who want a low-down-payment build
  • Owners tearing down and rebuilding on their own land
How it works

Three steps from here to closing.

Builder and plans

We review the builder, the contract, the plans and the budget. Land equity counts toward the down payment.

Close and start

The lot is purchased or paid off and the builder receives draws as each stage passes inspection.

Convert to permanent

When the certificate of occupancy is issued the loan converts to your 30-year mortgage automatically.

What you'll need

Requirements at a glance.

  • Licensed, insured builder with a fixed-price contract and a draw schedule
  • Credit score of 620 for FHA and VA, 680 for conventional
  • Down payment of 5% to 10% conventional, 3.5% FHA, 0% VA; owned land counts as equity
  • Plans, specifications and a budget for the appraisal
  • Build completed within 12 months in most programs
Straight talk

The upside, and what to weigh.

Why people choose it

  • One closing and one set of fees for the whole project
  • Rate locked before the build starts
  • Interest-only payments while you build

Things to consider

  • Builder approval and draw inspections take time
  • Cost overruns are your responsibility unless the contract covers them
Common questions

Asked on almost every first call.

Do I need to own the land first?

No. The loan can buy the lot at closing. If you already own it, the equity counts as your down payment.

Can I be my own builder?

Rarely. Most programs require a licensed general contractor.

What if the build takes longer?

Extensions are possible for a fee. We plan the timeline with the builder up front.