New Construction & Construction-to-Permanent Loans
A construction loan finances building a new home. A construction-to-permanent loan covers the build and then converts to a regular mortgage, often with one closing.
Whether you’re building on your own lot, working with a custom builder, or buying a newly built home from a builder, we’ll match you with the right financing.
Who it’s for
How it works
Construction-to-permanent (one-time close): one loan and one closing. During construction, funds are paid to your builder in draws as work is completed. When the home is finished, the loan converts to your permanent mortgage.
Builder new construction: if a builder is selling you a finished or nearly finished home, it’s usually financed like a standard purchase. You can still compare our offer against the builder’s preferred lender.
If you already own your lot, its value can often count toward your equity in the project.
What you need to qualify
- Credit and income that support the final mortgage payment
- A licensed, approved builder with a signed contract
- Plans, specifications and a detailed budget
- An appraisal based on the completed home’s value
- Funds for any down payment, contingency and closing costs
Documents to have ready
- Builder contract, plans and specifications
- Construction budget and timeline
- Builder’s license and insurance information
- Lot deed or purchase contract
- Income and asset documents
How it works with Amerifi Lending
Frequently asked questions
Do I make payments during construction?
Often you pay interest only on the amount drawn so far. Some programs work differently, and we’ll explain your specific loan.
Can I use FHA or VA for construction?
Yes. One-time-close FHA and VA construction programs exist, along with conventional and jumbo options.
What if construction runs over budget?
That’s why a contingency reserve is built into the budget. Talk with us early so the loan is structured with a cushion.
Related loan options
Ready to see what you qualify for?
Have questions? Call or text us, or start your application online. There is no cost to find out what you qualify for.
- No cost to find out what you qualify for
- Straight answers, no pressure
- We reply within one business day