Construction lending is usually just a type of loan offered under conforming guideline to accommodate the owner building their property, whether through a builder or themselves. Construction loans are underwritten the same way as traditional financing according to the product selected. The borrower should expect the interest rate to be competitive with normal products rates, but should also expect to pay a premium for the "construction" feature added to the loan in the form of points. These points may vary from lender to lender.

The funding of construction loans is what sets this loan apart from traditional financing. Usually the funds are disbursed over a 5 draw schedule and the draws are based upon percentage of completion. There is a fee collected at closing for each draw, and this fee is non-refundable should you use less than the five scheduled.

We look forward to making the mortgage process the easiest part of building your "dream home".