Construction Loans to Build a House

I offer a true “one-time-close” loan program designed to finance the construction or major remodel of a primary residence or second home (meaning it won’t be rented out or “flipped”). I also have loans to build an investment/rental property with additional down payment.

For a primary residence: 20% minimum down payment of the Total Acquisition Cost (TAC) which is defined as the cost of construction plus the purchase price of the lot. i.e. Lot price is $500,000. Cost of Construction is $800,000 = TAC of $1.3mil

If you already own the lot, your equity counts towards the down payment.

Reserves – 6 to 24 months of the new payment amount needs to be in your accounts at close of escrow. Retirement and stock accounts are acceptable sources. Months of reserves needed is based on the loan amount.

This loan includes financing for both the construction and permanent loan in one closing. That means you save the expense of dual loan fees and the worry of having to re-qualify for a permanent loan after the home is complete.

Building a house from the ground up will be a pain if you don’t have a Loan Officer who  has built multiples houses in the past.

No manufactured homes or shipping container homes

Another option is to renovate an existing property and make it your own. The down payment is much less and its typically much quicker to renovate over building. Check out my Renovation page.