Construction Loans are short-term loans used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered fairly risky, construction loans usually have higher interest rates than traditional mortgage loans. Construction loans are ideal for people who are looking to build their dream home.
What are the Construction Down Payment Requirements?
For Purchase transactions Construction Loans require the home-buyer to put down at least 20% - 25%* of the purchase price of the home. To be able to gain approval for a consrtuction loan, you must provide us with an extensive list of construction details, also known as a "blue book" and prove that you have a qualified builder as part of your homebuilding project.
Find Out if a Construction Loan is Right for You
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* - Please visit our Disclosures page for more details for all loan types