Program Overview
What is a construction loan?
A construction loan provides staged financing for eligible building or renovation projects.
Funds are generally advanced through draws after inspections and completion milestones. Qualification considers borrower strength, builder experience, plans, budget, timeline, permits, appraisal, reserves, and exit strategy.
Who This Program May Help
Who may benefit from construction financing?
Custom-Home Buyers
Borrowers building a new primary or second home.
Property Owners Renovating
Owners completing substantial improvements or reconstruction.
Real Estate Investors
Eligible investors developing or improving residential property.
Experienced Builders
Approved builders completing qualified projects.
Qualification Factors
Common eligibility considerations
Construction programs vary by project type, builder, occupancy, experience, loan-to-cost, loan-to-value, permits, and exit strategy.
Preparing to Apply
Documents commonly requested
- Government-issued identification
- Income and asset documentation
- Construction contract
- Plans and specifications
- Detailed budget and draw schedule
- Builder license, insurance, and references
- Permits and approvals
- Appraisal and title documentation
Step by Step
How the process works
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01
Complete the Secure Application
Provide your contact information, financing goals, property details, and estimated financial profile.
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02
Submit Supporting Documents
Provide the income, asset, credit, identity, entity, and property documents required for the selected program.
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03
Review Program Eligibility
Your mortgage professional reviews loan structure, occupancy, property type, credit, income, reserves, and documentation.
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04
Processing and Underwriting
The file, appraisal, title, insurance, disclosures, conditions, and applicable program requirements are reviewed.
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05
Final Approval and Closing
After final conditions are satisfied, closing documents are prepared for signing and funding.
Frequently Asked Questions
Construction Loans FAQs
How are construction funds released?
Funds are generally released in draws after inspections verify completion of approved work stages.
Is a builder required?
Many programs require an approved licensed builder or contractor, though requirements vary.
What is an as-completed appraisal?
It estimates the property's value after the proposed construction or renovation is completed.
Can a construction loan convert to permanent financing?
Some programs offer construction-to-permanent structures, while others require separate permanent financing.
Can investors use construction loans?
Yes, under eligible investor or business-purpose construction programs.