Construction Loan
Construction Loan Programs Construction loans provide financing for building a new property or completing major renovations from the ground up. These loans are ideal for homeowners, investors, and developers who want to build a custom home, add units, or significantly improve an existing property. Unlike traditional mortgages, construction loans fund the project in phases (draws) as construction progresses.
What Can Construction Loans Be Used For?New ground-up constructionMajor renovations or expansionsSingle-family, multi-family, mixed-use, and investment propertiesResidential and commercial projects
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How Construction Loans WorkFunds are released in scheduled draws based on construction milestonesInspections are required before each drawInterest is typically paid only on the amount drawnOnce construction is complete, the loan may convert to a permanent mortgage or be refinanced
How Construction Loans Work Funds are released in scheduled draws based on construction milestonesInspections are required before each drawInterest is typically paid only on the amount drawnOnce construction is complete, the loan may convert to a permanent mortgage or be refinanced
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Types of Construction Loans Construction-to-Permanent Loans – One loan that converts to a long-term mortgageStand-Alone Construction Loans – Short-term financing followed by a separate mortgageRenovation Construction LoansInvestor & Commercial Construction Loans
Key Benefits
Finance construction costs without paying full interest upfront Flexible options for owner-occupied and investment properties. Available for residential, mixed-use, and commercial projects. Allows borrowers to build instead of buying existing property
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What to Expect
Construction loans typically require: Detailed construction plans and budget. Licensed and insured contractors. Higher down payment compared to traditional loans. Strong credit and financial profile. Rates and terms may differ from conventional mortgages due to the complexity and risk involved.
