Construction Loans
Construction Loans – Financing Your New Build
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Construction loans are designed for borrowers who want to build a home from scratch, whether it’s a primary residence, second home, or investment property. Instead of receiving all the funds at once, money is released in draws as construction progresses. This keeps the project on track and ensures funds are used exactly as intended. If you’re working with a builder and have plans in place, construction financing gives you a clear path from dirt to finished home.
Ideal for:
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Custom home builds
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New residential construction
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Investors building spec or rental properties
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See if your property is eligible for Construction financing:
How does a construction loan work? Funds are released in phases as construction milestones are completed.
Do construction loans require a down payment? Yes. Most programs require 5–25% down, depending on the project and borrower profile.
Do I need a licensed builder? Yes. Lenders typically require a licensed, insured builder with experience.
Are payments required during construction? Usually yes, but payments are often interest-only during the build.
Can this turn into a permanent mortgage? In many instances, yes. Many construction loans convert into a long-term mortgage once the build is complete.