Building or renovating? Finance the property and the work with one closing.
One loan covers the land or home purchase (or your refinance) plus the construction, then becomes your long-term mortgage. A specialist who knows construction lending inside and out guides you through it.
You're all set, .
A specialist will text you shortly with your free guide. Want to skip the wait?
Book a 15-minute callOne loan from groundbreaking to move-in.
One closing
Part of the loan pays the seller or your existing mortgage. The rest goes into escrow and is released as work gets done.
Interest-only while you build
During construction you pay interest only on the funds actually disbursed so far, not the full loan amount.
Converts automatically
When the work is done, the loan converts to a standard principal-and-interest mortgage. No second closing.
Sized to the finished home
Your loan amount is based on the lesser of your total project cost and the home's appraised "as-completed" value.
Who it's for
- You own a lot or are buying one, and want to build your primary or second home
- You're buying a home that needs major work and want to finance the renovation up front
- You own your home and want to refinance to fund a major renovation or rebuild
What you and your GC will need
- A construction contract signed by you and your general contractor
- Plans and specifications for the project
- A line-by-line construction cost budget (on the lender's worksheet)
- Your GC's certificates of general liability and workers' compensation insurance
How draws work
Funds are released as work is completed — never ahead of it. Before each draw, an appraiser inspects the progress. That protects you from paying for work that hasn't been done.
Plan for a cushion
You'll need extra cash on hand equal to 10% of the construction cost as a cost-overrun reserve. Building that contingency in from day one is the single best way to keep a project on track.
Why a specialist matters here
Construction loans fall apart on details: a budget missing soft costs, a GC without proper insurance certificates, an appraisal that doesn't match the plans. Our construction specialists have hands-on ground-up development experience and spot these problems early.
Talk to a specialistThe Build-Your-Home Financing Playbook
A budget worksheet with a 10% contingency line, the GC document checklist and the draw process explained.
Construction loan FAQ
Can the purchase and the construction be in one loan?
Yes. The loan can cover the land or home purchase plus the construction, with a single closing.
What happens if the project runs over budget?
You'll need a cost-overrun reserve equal to 10% of construction costs in cash. Your specialist will help you plan for it before closing.
Can I act as my own general contractor?
The program requires a general contractor who signs the construction contract and provides liability and workers' comp insurance certificates.
When do I start making full payments?
During construction you pay interest only on disbursed funds. Full principal-and-interest payments begin once the loan converts.
Can I use it for a second home?
Yes. The program is available for primary residences and second homes.