Construction Loans
Build your dream home with financing designed for the journey ahead
Tailored for Your Project
Financing that grows with your build
Construction projects require a different approach to lending. Rather than a single lump sum at closing, you'll draw funds as your project progresses. We understand the rhythm of building: inspections, milestones, and changing timelines. Our construction loans are structured to match how work actually happens on site, giving you access to capital when you need it, not before. Once construction wraps and your home is complete, we can transition your loan into a permanent mortgage, simplifying the process of moving from temporary to long-term financing. You'll work with a loan officer who understands construction, who can answer questions about draws, timelines, and what comes next.
Construction loan options
Whether you're working with a builder or managing your own project, we have financing structured for how construction actually works. Interest-only payments during construction keep your cash flow manageable, and permanent takeout options mean smooth transitions when work is done.
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Construction-to-Permanent Loan
Start with construction financing and convert to a permanent mortgage when your home is complete. One application, one closing cost estimate, and one transition into your long-term loan. The certainty of knowing your permanent rate before you break ground gives you clarity for the entire project.
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Stand-Alone Construction Loan
Separate financing for the construction phase alone. Useful if you plan to refinance later or if your permanent lender will be different. We'll structure draws to align with construction stages, keeping funds available when you need them.
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Renovation Loan for Existing Homes
Expanding, updating, or completely reimagining a home you already own. Roll renovation costs into your mortgage, or finance them separately. Our loan officers will help you structure timing and draw schedules that work with your contractor's timeline.
How construction financing works
The process mirrors home buying in some ways, but construction introduces a different timeline. Here's what to expect from application through completion.
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Application and Pre-Qualification
You'll share details about your project: the property, builder or contractor, total project cost, and timeline. We'll review your finances and give you a clear picture of what you can borrow. No surprises later. If you're working with a builder, we can coordinate with them to ensure everyone's on the same page about costs and timing.
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Loan Approval and Inspection Plans
Once approved, we'll establish a draw schedule tied to construction milestones. Inspections happen at agreed-upon stages, and funds are released once those milestones are certified. This protects you, the lender, and ensures the work is completed to code. You'll understand exactly when money flows and what triggers each draw.
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Permanent Loan Conversion or Takeout
When construction is complete and your home passes final inspection, your loan converts to permanent financing if you chose a construction-to-permanent product. Your interest rate locks in from day one. If you opted for stand-alone construction financing, you'll work with your lender of choice for permanent takeout, or we can help with that transition.
Questions about construction loans
Construction financing is less familiar than traditional mortgages, and that's why we're here to walk you through it step by step.
What happens to my interest payments during construction?
During the construction phase, you'll typically pay interest only on the amount you've drawn, not the full loan amount. This keeps your payments manageable while work is ongoing. Once construction ends and your loan converts to permanent financing, you'll move to principal-and-interest payments on the full balance. The mechanics of this are built into your loan agreement from day one, so there are no surprises when construction wraps up.
How are construction draws scheduled and approved?
Draws are tied to construction milestones and inspections. A typical schedule might include draws at foundation, framing, electrical rough-in, drywall, and final completion. Your contractor or builder requests a draw, our team verifies that work has been completed to that stage, and funds are released. This process protects everyone involved and ensures work meets code and quality standards. You'll have full visibility into the schedule before construction begins.
What if construction costs exceed the original estimate?
If costs climb beyond your loan amount, you have options. You can request an increase to your construction loan before closing, or you can cover overages with your own funds. This is a conversation to have early in the process with your builder and your loan officer. Some costs are predictable; others emerge once work begins. We help you plan for contingencies and understand your options if something changes.