One loan, from ground-breaking to move-in
A construction loan pays your builder in stages as the home goes up, then converts to a regular mortgage once it's done — one closing instead of two. Our team walks you through every draw and step in plain English.
Who it fits
Buyers building a custom home
Ground-up construction on land you own or are purchasing, built to your specifications.
Buyers wanting one closing
One-time-close programs avoid a separate construction loan and permanent mortgage closing.
Buyers working with an approved builder
Most programs require a licensed, vetted general contractor on the project.
How a one-time-close construction loan flows
A simplified draw schedule for illustration.
| Stage | Typical % of funds released | Payment during this stage |
|---|---|---|
| Foundation & framing | ~40% | Interest-only on funds drawn |
| Mechanicals & drywall | ~35% | Interest-only on funds drawn |
| Finishes & completion | ~25% | Converts to permanent mortgage |
Illustration only. Actual draw schedules, percentages, and stages depend on your builder's timeline, loan program, and inspections.
Where construction financing helps
- One closing instead of separate construction and permanent loans
- Interest-only payments during the build
- Funds released in stages as work is completed and inspected
- Converts automatically to a standard mortgage at completion
What to weigh
- Typically requires a larger down payment than a standard purchase
- Requires an approved, licensed general contractor
- More documentation than a typical purchase loan
- Timeline delays can affect the draw schedule
Common questions
What's a one-time-close construction loan?
A single loan that funds construction in stages, then automatically converts to a permanent mortgage when the home is complete — no second closing.
How do I make payments during construction?
Most programs require interest-only payments on the funds that have been drawn so far, not the full loan amount.
Do I need my own builder?
Yes — most construction programs require a licensed, vetted general contractor to be approved as part of underwriting.
Can I use land I already own?
Yes, land you own free and clear or with an existing loan can often be used as part of your equity in the project.
See what a construction loan looks like for your project
No cost, no obligation — we'll walk through the draw schedule and numbers with you.