Construction Financing – Premium & Confirmed

: This includes your building plans, materials list, and project timeline.

: Specifically for buyers purchasing a "fixer-upper" to finance both the home purchase and significant upgrades.

: Determine your budget before paying for architectural plans.

: During construction, you generally only pay interest on the funds that have already been drawn, rather than the full loan amount.

: Most lenders require a score of at least 680 , though some may accept 620.

Construction financing is a short-term, high-interest funding method used to cover the costs of building a new home or commercial property from the ground up. Unlike a traditional mortgage, which provides a lump sum to buy an existing home, construction loans are disbursed in stages—known as "draws"—as specific building milestones are reached. Core Concepts of Construction Loans

: Expect to put down 20% to 25% . Government-backed options like FHA construction loans may allow as little as 3.5% down.

: Lenders will vet your contractor's experience and insurance.