Frequently Asked Questions

During the construction period, you make interest-only payments until the work is finished, and only on the amount disbursed to your contractor at that time. These means the initial payments will be extremely low and will gradually rise as construction milestones are hit and additional funds are disbursed, called a draw.

Our construction terms are up to 24 months.

Yes, you may use the builder of your choice, given they are a licensed general contractor and have shown experience building homes from start to finish.

We are licensed in all states, with the exception of New York and Wyoming.

Yes. If your land is paid off, you are able to use the equity towards the down payment of your loan.

**Some terms apply, contact us for complete details.

At previously determined intervals, an inspection of the construction progress will be done. At that time, your contractor can then apply for a draw, or a additional payment from the approved loan amount.

The down payment amount is determined by a number of variables, with the location and size of your loan being the biggest contributing factors. In many cases, the down payment is 5% of the loan amount, with some packages offering a lower percentage. See our program requirements for more information about your specific loan type.

We have packages with loan amounts of up to $3million. (Anything over $584k is known as a jumbo loan.)

On average, the process is 30-60 days from initial application to funding. The time frame can be effected by several factors, including the complexity of your project, how responsive your builder is, and the availability of appraisers in your area.

Before the process is completed, a pre-determined draw schedule is set up with several benchmarks throughout the project. Once each stage of construction is completed, your builder will request an inspection. As long as the progress meets the required stage of completion, the draw will be released to the builder.

A construction loan is a short-term, higher-interest funding option to provide needed funds to build or renovate a residential property.

Often, construction loan qualification thresholds are higher, meaning a higher credit score and down payment are required, however we have many loan programs to help qualify all different types of borrowers and situations. Click HERE to view our loan programs

No. With construction loans, the borrower never actually sees the funds. Instead, all money is sent directly to the builder. If the construction comes under the approved funding amount, you simply don’t pay that extra; the extra will not be sent to you.

A construction loan with two closings is typically structured where you get a short term loan for the construction portion, and when the house is complete you obtain another loan for the permanent portion of your financing. The downside to this is that you pay two sets of closing costs, and your rate is not typically locked during construction. Our loans are One Time Closing loans: You Close one time up front, and after the home construction is complete, your loan automatically rolls into the permanent financing stage. You only pay one set of closing costs, there aren’t re-qualification issues, and your rate is protected during construction.