New Construction
Building from the ground up, buying a spec home, or renovating a fixer-upper. Each path has its own loan structure — we’ll help you pick the one that fits.
A single loan that funds construction and then converts to a permanent mortgage when the home is finished. During construction, you make interest-only payments on the funds drawn. Once the certificate of occupancy is issued, the loan converts to a fully amortizing mortgage. Two closings in one, with one set of closing costs.
A variant of construction-to-permanent with a single closing and locked terms from the start. Locks your permanent-loan interest rate before construction begins, which protects you if rates rise but doesn’t let you benefit if they fall.
Two separate closings: a short-term construction loan (typically 12–18 months) followed by a permanent mortgage at completion. More flexibility on the permanent loan pricing when construction ends, but two sets of closing costs.
Programs like FHA 203(k), Fannie Mae HomeStyle, and Freddie Mac CHOICERenovation let you finance a purchase (or refinance) plus renovation costs in one loan. Good for buying a fixer-upper or doing a significant remodel on a current home.
New-construction files have more moving parts than standard mortgages. Common realities to plan around:
Timeline: Construction can run 6–18 months depending on complexity, weather, permits, and the builder’s schedule. Your rate lock needs to cover this window.
Draws: The lender releases funds in stages tied to construction milestones (foundation, framing, dry-in, etc.), verified by inspections.
Contingencies: Build in a contingency reserve (5–15% of construction cost) for change orders and overruns. Most lenders require or strongly recommend it.
Down payment: Typically 10–25% depending on program and loan-to-cost ratio, calculated on the total project cost (land + construction).
Talk to a licensed Loan Advisor. We’ll help you structure the financing to fit the project.
Talk to a Loan Advisor