How it works
Construction financing funds a project in draws as work is completed, then converts or refinances into permanent financing. Builder approval, plans, budget and appraisal-to-completion value all become part of the loan file — which means the lender needs to be involved well before the first shovel.
What defines this program
- Draw-based funding during construction
- Construction-to-permanent and renovation structures
- Builder, plan and budget review as part of approval
Common fits
Questions borrowers ask
When should I talk to a lender about building?
Before you sign with a builder. Budget, draw schedule and lot financing all interact with the loan, and early involvement prevents expensive rework.
Who are construction loans usually a good fit for?
Most often custom mountain builds, teardown and rebuild projects, major renovations. That list isn't a rule, though — plenty of files land here for reasons that don't show up on a bullet point, so it's worth asking even if you don't see yourself on it.
What should I have ready before we talk about construction loans?
Nothing formal. Tell me the property type and where it is, whether it's a purchase or refinance, how you're paid, and roughly what you're working with for down payment or equity. That's enough for me to tell you which direction actually makes sense before you pull documents together.
What will my terms look like?
Pricing, structure and qualifying guidelines vary by lender, property, occupancy and your full financial picture — and they change often. Rather than publish numbers that may not apply to you, I review your scenario directly and walk you through the real options available for it.
This page intentionally avoids quoting rates, down payments, credit-score minimums or underwriting requirements. Guidelines differ by lender, property type, occupancy and borrower profile — and they change. April Ramker reviews your scenario and tells you what applies to it.