All loan programs
Quick answer
- Who it may fit
- Buyers building a custom home
- Down payment
- Cash to close depends on the program, the property and your file — we quote your scenario before you apply.
- Main benefit
- Funds are released against verified progress rather than all at once
- Main tradeoff
- Builder approval, plans, specifications and a budget are required upfront
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.