What it is
What a Construction Home Loan actually is.
Building your own home is a thrill — and a process. The right construction loan smooths every step from breaking ground to handing over the keys.
The structure described here is the one-time-close construction-to-perm loan: one closing, one set of fees, and an automatic conversion to the permanent mortgage when the home is finished. The alternative, a two-close structure, means qualifying twice and paying closing costs twice, and exposes the borrower to a second rate lock.
During construction, you pay interest only on funds drawn. After completion, you settle into a standard 30-year fixed (or whatever permanent product you chose).
Who it suits
Borrowers this program is built for.
None of these is a rule, and matching every line does not qualify anybody. They are the situations where this program tends to be the one worth pricing first.
- Custom home builders
- Buyers of newly built spec homes
- Owners planning major additions
- Builders financing model homes
What it gives you
The parts that make it worth choosing.
One Closing
Construction and permanent loan combine into one closing — one set of fees.
Interest-Only During Build
Pay only interest on funds drawn during construction.
Locked Rate
Rate is locked at construction closing — protect against rate spikes.
Conventional, FHA, VA
Construction-to-perm available across most loan types.
How the process runs
4 stages, in order.
This is the shape of a real file, written for a demonstration. Any timeline, fee or turnaround named below is invented for the example and is not a commitment — no step here can actually be started, because Copperline Home Loans does not exist and holds no license.
- Plans & BudgetBuilder provides plans, specs, and a detailed budget.
- ApplyWe underwrite the construction loan and permanent loan together.
- Draws During BuildFunds release in stages as the builder completes work.
- ConversionLoan converts automatically to your permanent mortgage at completion.
Questions