Construction Loan

WHAT IS A CONSTRUCTION LOAN

A construction loan provides short‑term financing to build a new home or complete major renovations. With flexible draws, interest‑only payments during construction, and a clear path to permanent financing, construction loans give you control from blueprint to move‑in.

LEARN HOW CONSTRUCTION LOANS WORK

Construction loans release funds in stages as the project progresses. During construction, you typically make interest‑only payments. Once the home is complete, the loan may convert into a permanent mortgage or be refinanced into a long‑term loan.

SEE CONSTRUCTION LOAN PAYMENT EXAMPLES

Construction loan payments are usually interest‑only during the build. After construction, payments convert to a standard principal‑and‑interest mortgage based on your final loan terms.

UNDERSTAND CONSTRUCTION LOAN RATES

Construction loan rates depend on your credit score, loan amount, project scope, and market conditions. Rates may be slightly higher during construction due to short‑term risk, then adjust once the permanent loan begins.

SEE HOW CONSTRUCTION LOAN RATES ARE SET

Lenders evaluate your credit history, income stability, debt‑to‑income ratio, project plans, builder qualifications, and overall financial strength. Stronger profiles and well‑documented projects typically receive better pricing.

CONSTRUCTION LOAN CREDIT REQUIREMENTS

Construction loans require solid credit, stable income, and a clear financial profile. Lenders also review your building plans, contractor details, and project budget to ensure the loan fits your goals.

CHECK CONSTRUCTION LOAN CREDIT REQUIREMENTS

CONSTRUCTION LOAN FEES AND COSTS

Construction loans include standard closing costs plus potential inspection fees, draw fees, and project‑related expenses. Costs vary based on project size, builder requirements, and loan structure.

REVIEW CONSTRUCTION LOAN FEES

CONSTRUCTION LOANS VS. RENOVATION LOANS

Construction loans are ideal for building a new home or major structural work. Renovation loans are better for updating or improving an existing property. Each option fits different project scopes and budgets.

COMPARE CONSTRUCTION VS. RENOVATION LOANS

COMMON USES FOR CONSTRUCTION LOANS

Construction loans are used for building a custom home, completing major renovations, or financing large‑scale property improvements. They offer flexibility and control throughout the building process.

EXPLORE CONSTRUCTION LOAN USES

TAX CONSIDERATIONS

Interest on construction loans may be tax‑deductible when used for qualifying home construction. Tax benefits vary based on project type and current tax laws.

LEARN CONSTRUCTION LOAN TAX RULES

HOW TO APPLY FOR A CONSTRUCTION LOAN

You’ll provide financial documents, building plans, contractor details, project budgets, and property information. Construction loans offer structured financing to help you complete your project with confidence.

START YOUR CONSTRUCTION LOAN REQUEST