Specialty
Construction Loans
Finance the ground-up construction of a new home or investment property with a draw-schedule loan that releases funds as each phase of construction is completed.
How construction loans work
Unlike a traditional mortgage, a construction loan releases funds in stages — called "draws" — as each phase of construction is completed and inspected. You only pay interest on the funds drawn, not the full loan amount.
Once construction is complete, the loan either converts to a permanent mortgage (construction-to-permanent) or is paid off with a new permanent loan (construction-only).
Construction-to-permanent vs. two-close
Construction-to-Permanent (One-Close)
A single loan that covers construction and automatically converts to a permanent mortgage when complete. One set of closing costs.
- One closing
- Rate locked at start
- Simpler process
- Fewer fees overall
Two-Close Construction Loan
Separate construction and permanent loans. Allows you to shop for the best permanent rate when construction is complete.
- Rate flexibility at end
- Two sets of closing costs
- More lender options
- Better if rates may drop
Building from the ground up? Let's talk.
We'll walk you through your construction financing options and help you structure the deal correctly from day one.
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