- 1 time close
- Single Family Residential only
- Primary and Secondary Residence Only
- Only 10% down required, depending on loan size*
- 680 min credit score
- Consolidate construction and purchase price for only 1 set of closing costs and fees.
- Purchase a tear down property.
- If you already own an empty property and want to build a home, tear down and put up a new one, or do a major renovation on an existing home.
- Pay just interest-only payments during construction.
- Avoid requalification post-construction.
- Simple & flexible draw process with no set schedule.
- Use qualified licensed builder of your choice (self-build not allowed)
How Do Construction Loans Work?Overall Process:
- Builder Approval
- Project Approval (appraisal, plans and specs, costs from builder)
- Borrower Credit Approval
- Initial Draw at Close (up to 50K) to get project started and/or reimburse for any materials already purchased
- Post close welcome call from construction management company
- Inspections done as work is put in place, then checks for draws issued to builder and borrower
- Once work is done, loan is modified into a standard 30 year fixed loan at present market rates (vs. the interest only loan in place during construction). Borrower is able to pay down balance on converted loan in the event other property they owned has been sold in the meantime. *NO CLOSING COSTS*
- Stalled projects
- Modular construction
- Major renovations (projects beyond scope of renovation programs)
*Finance up to 90% of project (purchase price + cost to construct). Eligibility requirements, exclusions and other terms and conditions apply.