Buying a home is great—but building one from the ground up? That’s next-level. Whether you’ve got land ready to go or you’re still in the planning phase, a construction loan can help turn your blueprints into reality.

This isn’t your typical mortgage. A construction loan is a short-term loan that covers the cost of building your home—materials, labor, permits, and more. Once your home is built, the loan is either paid off or converted into a permanent mortgage (that part’s called a construction-to-perm loan, and yes, we offer those too).

So, What Exactly Is a Construction Loan?
It’s a loan that funds the building process—not just the purchase of the finished home. Think of it like a line of credit that gets disbursed in stages as construction progresses. You don’t get one big lump sum up front. Instead, your builder gets paid in “draws” after each phase is completed and inspected.

You only pay interest on what’s been drawn so far—so your payments start low and gradually increase as the build moves forward.

What Can It Cover?
Land purchase (if you haven’t already bought it)

Contractor and labor costs

Building materials

Permits and fees

Inspections and contingency reserves

Landscaping and major systems (HVAC, plumbing, electrical)

In short: all the essential stuff that takes a house from dirt lot to dream home.

Who’s a Good Fit for a Construction Loan?
This loan is perfect for you if:

You’re buying land and hiring a builder

You’re building a custom or semi-custom home

You want a loan that funds your construction and then converts into a regular mortgage

You have the patience and flexibility to go through the build process

Important note: You’ll typically need a detailed construction plan and budget, a licensed contractor, and a stronger credit and income profile than you might need for a regular purchase loan.

How Is It Different from a Regular Mortgage?
Construction Loan Traditional Mortgage
Funds disbursed in stages Full amount at closing
Interest-only payments during build Full principal & interest payments
Requires plans, permits, builder info Just need purchase contract

Pro Tip: One-Time Close Loans
Don’t want two closings (one for construction, one for the mortgage)? We offer one-time close construction loans, which means you sign once, lock your rate upfront, and roll everything into a single loan. It’s faster, cheaper, and much less hassle.

The Bottom Line
A construction loan is a powerful tool—but it comes with more moving parts than your standard home loan. That’s why you need a lending team who understands the process from dirt to drywall.

We’re here to help you navigate land costs, draw schedules, inspections, and all the fine print—so you can focus on building the home you’ve always wanted.