0% and 5% Down Options
One-Time Close Construction Loans
We are proud to offer the best new construction loans in the industry for both conventional and VA loans.
Program Highlights
3 Important Things to Know
1
Low Down Payment
You can put as little as 5% down with our conventional construction loan product or even zero down with our VA construction loan product.
2
One Loan Approval
After getting approved for your construction loan, you will not need to get approved again once your new home is complete.
3
Flexible Credit Requirements
The minimum credit score for our conventional construction loan is 700, and the minimum score for our VA construction loan is 580.
Program Benefits
Explore some of the many great benefits of our construction loan program!
Lowest Interest Rates
We offer some of the lowest construction loan rates on the market.
Easy Process
While other lenders require extensive documentation and numerous hoops to jump through, we make our approval process quick and easy!
Low Down Payment
While most construction loans require at least 10-20% down, our construction loan allows you to put as little as 5% down (Conventional) or $0 down (VA).
Home Builder Vetting
We have a quick and efficient process to vet your builder and obtain references to ensure your builder is credible.
Rate Float Down
If interest rates are lower when the construction of your new home is complete, you’ll be eligible for an interest rate float down during the loan modification to permanent financing period.
Construction Loan FAQs
Answers to commonly asked questions about our one-time close construction loans.
Will my interest rate change when construction is complete?
You will lock in an interest rate for the construction phase of your loan, and this rate will be just slightly above the market rate for a standard conventional or VA loan at that time. However, when construction is complete on your home, you will have the opportunity to float down your rate to the lowest available conventional or VA rate on the market. This is the rate you will lock in for your permanent financing for the remainder of your mortgage. If interest rates increase during construction of your home even above the initial rate you locked in for the construction phase of your loan, your permanent interest rate will be the rate you locked in at for the construction phase. This is your max interest rate, and your permament interest rate will not exceed this rate.
How much interest is charged during construction?
The interest charged during the construction phase of your loan is based on your outstanding loan balance each month, so your interest expense will gradually increase as you near completion of your home. You will not pay interest on your full construction loan until all construction draws have been made.
If you are a VA loan borrower, you will not make any payments during the build period. Your interest expense will be rolled into the overall construction budget and loan amount.
If you are a conventional loan borrower, you will make interest only payments during the construction phase of your loan.
Does my builder have to be approved through your program?
Yes, if your builder is not already approved through our loan program, your builder will need to get approved. However, the review process can be completed in as little as 3 business days. Our review team will check your builder's experience and references and confirm that all licenses and relevant insurance policies are in place for your builder. Your builder can get approved through our loan program even before you locate land to build on and officially start the loan process.
How long do I have to complete construction?
From the time you close on your one-time close construction loan, you will have 12 months to complete construction of your home and transition to long term financing. However, if the completion of your home is delayed, you can extend the construction phase of your loan to get the extra time you need. You will just need to requalify for your mortgage at that time by providing updated employment and financial documents. We will also need to pull a new credit report for you to ensure everything is still similar to your original report.
Can I still do this construction loan if I already purchased a lot?
Yes, you can. When you close on your construction loan, some of the funds will be used to pay off any existing liens on your lot so that our loan is the only loan against your property. Your final loan amount will include the sum of any previous financing for your lot plus the cost to build your home, and the equity you have in your loan can be used towards your construction loan down payment.
What construction documentation will be required?
The following documenation will be required to close on your construction loan:
- Signed Construction Contract: Borrower and contractor must both sign.
- Cost Breakdown: Must match dollar amount included in the construction contract.
- Set of Plans: One full set of plans for construction and job specifications.
- Appraisal: We will order an appraisal based on your plans and specifications.
- Building Permits: We will need to receive a copy of the building permits for your home.