Build Your Dream Home

with a New Construction Loan.

Whether you’re working with a builder or financing a custom home, we offer construction loans with flexible terms, interest-only payments, and easy conversions to permanent financing.

Financing Solutions for Building Your Own Home.

A new construction loan is a short-term mortgage that covers the cost of building a new home. Unlike a traditional home loan, construction loans provide funds in stages as the home is being built, ensuring builders and contractors are paid throughout the process.

Key Benefits of a Construction Loan:

Flexible Loan Options – Choose from one-time close or two-time close loans.

Interest-Only Payments During Construction – Lower monthly payments while your home is being built.

Quick Funding for Builders – Payments are released in draws as construction progresses.

Convert to a Permanent Loan – Some loans automatically switch to a traditional mortgage after completion.

Available for Custom Homes & Builder Projects – Finance new builds, tear-downs, or major renovations.

Which Construction Loan is Right for You?

Construction-to-Permanent Loan (“One-Time Close”)

Single loan for both construction and permanent financing.

No need to refinance after construction is completed.

Interest-only payments during construction, then converts to a standard mortgage.

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Stand-Alone Construction Loan (“Two-Time Close”)

Two separate loans: one for construction, one for the final mortgage.

Offers more flexibility in lender options for the final mortgage.

Ideal if you plan to shop for a mortgage after the home is built.

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FHA Construction Loan

Government-backed loan with 3.5% down for eligible borrowers.

Lower credit score requirements than conventional construction loans.

Great for first-time buyers or those with limited savings.

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VA Construction Loan (For Veterans & Military Buyers)

Zero down payment construction financing for eligible VA borrowers.

No PMI (Private Mortgage Insurance) required.

Exclusive benefit for veterans, active-duty service members, and qualifying spouses.

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USDA Construction Loan (For Rural Buyers)

100% financing for homes in eligible rural and suburban areas.

Lower mortgage insurance costs than FHA construction loans.

Ideal for low-to-moderate-income borrowers looking to build in a USDA-eligible area.

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Compare Construction Loan Options

Step-by-Step Guide to the Construction Loan Process.

1️⃣ Pre-Approval & Loan Application – Get approved for a construction loan based on income, credit, and builder plans.

2️⃣ Select a Builder & Finalize Plans – Work with a licensed contractor and submit blueprints.

3️⃣ Loan Approval & Closing – Your lender finalizes terms and approves your construction plan.

4️⃣ Construction Begins – Funds are released in draws as building milestones are completed.

5️⃣ Final Inspection & Loan Conversion – Once construction is complete, the loan either converts to a permanent mortgage or is refinanced.

Start Your Construction Loan Pre-Approval

Do You Qualify for a Construction Loan?

To qualify for a construction loan, you typically need:

Credit Score: 620+ (580+ for FHA & VA construction loans).

Down Payment: 0-20% depending on loan type.

Debt-to-Income Ratio (DTI): Typically 43% or lower.

Licensed Builder Approval: The builder must meet lender requirements.

Detailed Construction Plan: A clear budget, timeline, and contractor details must be submitted.

Check Your Construction Loan Eligibility

Answers to Common Questions About New Construction Loans.

Do I need a large down payment for a construction loan?

Not always! Some government-backed programs like VA and USDA construction loans offer 0% down.

How do construction loan payments work?

During construction, you make interest-only payments based on the amount drawn.

Can I use a construction loan for a major renovation?

Yes! Certain loans, like FHA 203(k) and Fannie Mae’s HomeStyle loan, allow financing for renovations.

What happens after my home is built?

If you have a construction-to-permanent loan, it automatically converts into a mortgage. Otherwise, you will need to refinance.

How long does the construction loan process take?

Most construction loans take 9-12 months from start to finish.

Still Have Questions? Let’s Talk!

Turn Your Dream Home into Reality.

Building a home is an exciting journey, and we’re here to make financing easy. Whether you’re looking for a one-time close loan, VA construction financing, or flexible down payment options, we’ll help you every step of the way.

Get Pre-Approved Now

Schedule a Free Consultation

Harmony Home Mortgage provides expert home loan solutions, including FHA, VA, Conventional, USDA, and Non-QM loans. Licensed in FL, GA, NC, SC, and MI, we make homeownership simple and stress-free.