Residential Construction Loans
Builder Loans provides residential construction financing for new home builds, renovations, and expansions. Programs are structured for primary and secondary residences, offering solutions for single-family homes, ADUs, and 1–4 unit properties. Financing applies to both new and ongoing projects.
Program Overview
Eligibility & Guidelines
- Full income and asset verification
- Minimum FICO score: 720
- Construction term options: 12–36 months
- Prestarted or partially completed projects allowed
Loan Features
- Financing up to 100% Loan-to-Cost (LTC)
- Single-Close Construction-to-Permanent Loan (Fixed Rate)
- Interest-Only Payments on funds drawn
- Minimum Loan Amount: $800,000
- Advance Draws for Pre-Ordered Building Materials
- No Required Payments During Construction Phase
- Owner-Builder Financing Available
Property Types
Construction loans structured to support the build of custom or spec homes, maximizing project potential through flexible and efficient financing.
Programs designed for multi-unit residential projects, emphasizing speed, adaptability, and simplified draw management.
Financing for ADU construction with efficient approval and funding processes tailored to smaller-scale residential additions.
Frequently Asked Questions (FAQs)
What is a “Single-Close” or “One-Time Close” Construction Loan?
A single-close construction loan closes once before construction begins. After project completion, the loan converts automatically into permanent financing—eliminating additional closings, fees, or appraisals.
When do payments start on a construction loan?
Payments are deferred during the construction phase. Interest accrues only on drawn funds, and standard principal and interest payments begin after the home is completed and ready for occupancy.
How do Advance Draws for Pre-Ordered Materials work?
Advance draws provide upfront access to funds for materials or components requiring early payment, ensuring timely project delivery and maintaining cash flow.
What does Loan-to-Cost (LTC) mean, and how does it affect a project?
Loan-to-Cost (LTC) indicates the maximum percentage of total project cost covered by the loan. A 100% LTC may allow full project funding, subject to underwriting and eligibility requirements.
Can an applicant qualify as an Owner-Builder?
Owner-Builder eligibility requires sufficient construction knowledge or project management experience, financial stability, and compliance with established lender criteria.