A construction loan pays your builder in stages as work is completed, then converts to a regular mortgage when the home is finished.
Construction-to-permanent loans combine the build and the mortgage, with one application and one closing.
Funds are released in stages after inspections, so you only pay for completed work.
Many loans require only interest payments on the amount drawn while the home is under construction.
Include the purchase of your lot, or use land you already own toward your down payment.
Choose your floor plan, finishes and location instead of settling for existing inventory.
Related programs can finance major remodels or additions on a home you already own.
Because the home doesn't exist yet, lenders review both you and the project. Most borrowers need:
A Credit Score of 620 or Higher – Some programs look for 680 or above.
A Down Payment – Often 10% to 20%; FHA and VA construction options may allow less.
A Licensed, Approved Builder – Your builder must meet the lender's requirements.
Detailed Plans and a Budget – A signed contract, plans, specifications and a cost breakdown.
An Appraisal Based on Plans – The home's value is estimated from the finished design.
Answer a few quick questions about your plans, and a Woodcrest loan officer will reach out with options tailored to this loan program.
Get quick answers to the most common questions homebuyers ask. Our FAQ section is designed to help you understand the mortgage process, explore your options, and feel confident every step of the way.
The lender pays the builder in draws as each stage is completed and inspected. When construction ends, the loan becomes a standard mortgage.
It combines the construction loan and permanent mortgage into one loan with one closing, saving you a second set of closing costs.
Yes. Equity in land you own can often count toward your down payment.
It usually runs about 12 months, depending on the project, before converting to your permanent loan.
