About Construction Loans

A construction loan is a short-term loan that covers only the costs of custom home building. This is different from a mortgage, and it’s considered specialty financing. Once the home is built, the prospective occupant must apply for a mortgage to pay for the completed home.

However, there are several other loans available when it comes to home building, from ground-up building to a complete remodel of the entire house. There’s likely a loan out there that’s right for you, whether you’re starting from scratch with a land loan or completely renovating a home.

Benefits of Construction Loans?

Flexible Terms Pay Only The Interest During Construction Transition to a Permanent Loan The Freedom To Choose Minimum Requirements
• Put down as little as 10%.
• Credit scores as low as 660 may be accepted.
• Loan amounts up to $3M.
• Low interest rates for qualifying borrowers.
• Fixed rate, adjustable rate, and interest-only adjustable rate.
• May be used for primary residence, second home, or investment property.

†Depending on specific loan characteristics.