Quick answer
- Who it may fit
- Buyers financing a custom build or major rebuild in stages.
- Closing cash & build budget
- Land equity, borrower cash and closing costs vary by lender and one- or two-close structure.
- Insurance & fees
- Compare construction interest, draw fees, permanent-loan terms and any insurance requirement.
- Key eligibility
- Builder approval, plans, budget, appraisal, income and reserves are reviewed.
- Main tradeoff
- Progress-based funding adds inspections, timing and overrun risk.
Down payment is not total cash to close. Educational guidance pending licensed review.
The secure application opens outside lndwell.com. This page is not an application or pre-approval.
Construction financing advances funds in stages as the build progresses, then transitions to a permanent mortgage on completion. Structures differ meaningfully between lenders — the number of closings, how interest is handled during the build and how the rate is set are all worth comparing carefully.
- Buyers building a custom home
- Owners undertaking a rebuild or a major structural project
- Buyers who already own or are acquiring the lot
- Funds are released against verified progress rather than all at once
- Single-close structures can reduce the number of closings and associated costs
- The finished home is built to your specification
- Builder approval, plans, specifications and a budget are required upfront
- Interest handling during the build differs by program and affects your carrying cost
- Timelines depend on the builder, weather, inspections and permitting
- Cost overruns are the borrower's responsibility unless the program says otherwise
These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.
- An approved builder and complete plans, specifications and budget
- Credit, income and asset review, often with reserve requirements
- Appraisal based on the plans and specifications
- Land ownership or a simultaneous lot acquisition
All loans are subject to credit, income, property and underwriting approval. Nothing on this page is a loan offer, an approval, a rate lock or a commitment to lend. Programs, rates and terms are subject to change without notice.