Customized Financing
Interest-Only Payments
Loan Conversion Options
Flexible Terms
Tailored Budget Control
Potential for Increased Equity
Enhanced Future Value
Tax Benefits
frequently asked
questions
What is a construction loan?
A construction loan provides short-term financing to build a new home. Funds are released in stages, known as draws, as the project moves forward. Once construction is complete, it usually converts into a standard mortgage.
Who qualifies for a construction loan?
Borrowers typically need strong credit, steady income, and detailed building plans. Lenders may also require a higher down payment compared to traditional mortgages.
Do construction loans require an appraisal?
Yes, appraisers evaluate the building plans and the future value of the completed home. This helps confirm the project is worth the financing amount.
What documents are needed for a construction loan?
Along with financial documents, lenders require building plans, a signed contract with the builder, and a detailed budget. Proof of permits may also be required.
How long does a construction loan process take?
The process can take 45 to 60 days or more. It involves reviewing your financials, construction plans, and permits before approval. The timeline may also depend on builder readiness.