What is a construction-to-permanent loan?

A construction-to-permanent loan (also called a one-time-close loan) finances the construction of your home and automatically converts to a permanent mortgage when construction is complete. You only go through the approval and closing process once.

How do draw disbursements work?

Funds are released in stages (draws) as construction milestones are completed and verified by a third-party inspector. Common draw stages include foundation, framing, rough-in, drywall, and completion. You only pay interest on the amount drawn.

Do I need an approved builder for a construction loan?

Yes. Lenders require the general contractor to be licensed and insured, and typically require a review of the contractor's financials, experience, and insurance coverage. The construction contract and project plans must also be approved.

Can I act as my own general contractor?

Owner-builder programs exist but are rare and typically require significant construction experience. Most lenders require a licensed third-party contractor for construction loan approval.

Construction Loan | MtgPro.ai

Construction Loan

Build your dream home from the ground up

Construction loans finance the building of a new home, disbursing funds in stages as construction progresses. Once complete, the loan typically converts to a permanent mortgage (construction-to-perm).

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Key Advantages

Why Choose a Construction?

Here's what sets this loan product apart and who it works best for.

One-Time Close Option

Construction-to-permanent loans close once, saving you from two separate closing processes and costs.

Draw Schedule Flexibility

Funds are released in draws aligned to construction milestones, so you only pay interest on disbursed amounts.

Custom Home Financing

Finance any custom-built home, from modest builds to high-end architectural projects.

Lock In Your Rate Early

Some programs allow rate locks at the time of construction loan closing, protecting you from rate increases.

Calculator

Loan Calculator

Estimate your monthly payment and total interest over the loan term.

Loan Amount$300K

$50K$3.0M

Interest Rate

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Loan Term

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Calculator results are estimates only and do not constitute a loan offer, pre-approval, or commitment to lend. Actual terms may vary.

Eligibility

Qualification Requirements

General guidelines for Construction Loan eligibility. Requirements vary by lender and scenario.

Requirement	Guideline
Minimum Credit Score	680+
Minimum Down Payment	20%
Plans & Permits	Approved construction plans and permits required
Licensed Contractor	General contractor approval required
Appraisal	Appraised "as-completed" value required

These are general guidelines only. Specific program requirements may vary. Contact us for a personalized review of your scenario.

FAQ

Frequently Asked Questions

Common questions about Construction Loan loans.

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West Capital Lending, Inc. is an Equal Housing Lender. We do not discriminate on the basis of race, color, religion, national origin, sex, handicap, or familial status.

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