Nashville, TN(615) 555-0182[email protected]Demonstration site — not a lender
Willow CreekHome Finance
Run the numbers

Programme

Construction Home Loan

A single-close construction loan funds the build in draws and then converts to a permanent mortgage when construction is complete, without a second closing.

Model it — Monthly paymentAsk about it

What it is

Building a home turns a mortgage into a project with a schedule. The financing has to fund work that does not exist yet, which is why construction loans work in draws against inspected progress.

A one-time-close construction-to-permanent loan closes once. You sign at the start, draw funds during the build, and the loan converts to your permanent mortgage at completion without a second closing or a second set of fees.

During construction you pay interest only on the amount drawn to date, so early payments are small and grow as the build progresses. At completion the loan amortizes as an ordinary fixed-rate mortgage, or whichever permanent product you selected.

Who it fits

  • Buyers building a custom home
  • Buyers of newly built spec homes
  • Owners planning major additions
  • Borrowers who want the permanent loan settled before construction begins

How it runs

  1. 1Plans & BudgetThe builder provides plans, specifications, and a line-item budget.
  2. 2ApplyThe construction loan and the permanent loan are underwritten together.
  3. 3Draws During The BuildFunds release in stages against completed work, verified by inspection.
  4. 4ConversionAt completion, the loan converts to the permanent mortgage on the terms set at closing.

Questions

Do I need a licensed builder?

In nearly all cases yes. Owner-builder programs exist but are uncommon, and most lenders require a licensed and bonded general contractor.

How long can construction take?

Six to eighteen months is the usual window, with extensions available on complex builds.

What down payment is required?

Generally 20% on conventional construction-to-permanent, 3.5% on FHA, and 0% on VA new construction for eligible borrowers.

What happens if costs run over?

Overages come out of pocket. Budgets normally carry a 5% to 10% contingency line for the smaller surprises, and it is worth funding that line honestly.

Ask about the construction home loan

Marked fields are required. Everything else is optional — a broker only needs enough to call you back and know what you are asking about.

This form does not send anything. It validates what you type and shows a confirmation. Nothing is stored in a database, nothing is emailed, and nobody will call you. Willow Creek Home Finance is a fictional company built to demonstrate a design system.

Other programmes

Fixed Rate Mortgage

A predictable rate and payment for the life of the loan.

FHA Home Loan

Government-insured loans with 3.5% down and flexible credit guidelines.

VA Home Loan

$0 down, no monthly mortgage insurance, reusable entitlement.

Rehab Loan

Finance the purchase and renovation of a home in a single mortgage.

USDA Loan

0% down loans for eligible rural and suburban homes.

Jumbo Home Loan

Financing for homes priced above the conforming loan limit.