Build Your Dream Home with Expert Construction Financing

A construction loan provides funding to build your new home, with money released in stages as construction progresses. You typically pay interest only on the amount drawn down, not the full loan amount. Once construction is complete, the loan converts to a standard home loan. The process involves pre-approval, progress payments at key milestones, and final conversion upon completion.

Construction-to-permanent loans cover both the building phase and convert automatically to a standard home loan upon completion. This means one application, one approval, and potentially locked-in rates. Construction-only loans are short-term and require separate permanent financing once building is complete. The best choice depends on your situation and preferences – our team can explain which option suits your needs.

No, you only pay interest on the amount drawn down at each stage. For example, if your total loan is $500,000 but only $100,000 has been released for foundations, you only pay interest on $100,000. This helps keep costs manageable during the building phase.

It’s important to have a 10-20% contingency buffer for unexpected costs, variations, and delays. If costs exceed your approved loan amount, you’ll need to cover the difference or seek additional financing. This is why accurate initial budgeting and choosing reputable builders is crucial. Our team can help you plan for contingencies and structure your loan appropriately.