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Construction Loan Solutions

Finance your custom build, renovation, or commercial project

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✅ Custom builds & renovations funded 🔄 Draw progression payments managed

Our Construction Loan Products

From custom homes to major renovations, we provide the capital and expertise to bring your vision to life.

One closing, one loan that finances construction then converts to permanent mortgage. Lock your permanent rate at the start with progressive draw disbursements.

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Short-term interest-only loan covering just the construction period (6-18 months). After completion, you refinance into a permanent mortgage separately.

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Government-insured renovation loan combining purchase and rehab costs. As little as 3.5% down for primary residences. Includes both standard and limited 203(k).

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Conventional renovation loans for significant updates, additions, and rehab projects. Finance both purchase and renovation costs in one loan with flexible terms.

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Custom construction financing for high-net-worth clients with unique requirements. Portfolio underwriting allows flexibility for complex projects.

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Financing for multi-family buildings, mixed-use properties, and commercial construction projects. Terms and structures tailored to commercial viability.

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Qualification Overview

Credit Score

Higher thresholds: typically 680+ for construction loans. Portfolio programs may accept lower with strong compensating factors. FHA 203(k) requires 580+.

Down Payment / Equity

20-25% minimum of total project cost (land + construction). Owner-builder programs may require 25-30%. Equity in existing property may be used.

Builder/Contractor

Licensed, insured general contractor typically required. Builder profile, financial statements, and work history reviewed. Owner-builder allowed with strong experience.

Plans & Specifications

Complete construction plans, builder contract, cost breakdown, and permits required before funding. Detailed budgets and timelines reviewed by underwriter.

Why Choose Homestead Capital Partners

  • Specialized construction underwriting with experienced staff
  • Streamlined draw process with disbursement within 48 hours of inspection
  • Flexible programs from starter homes to luxury custom builds
  • Construction-to-permanent locks your rate at the beginning
  • Direct funding — no broker middlemen, faster decisions

Start Your Construction Project

Ready to build your vision? Submit your project details and we'll match you with the optimal construction financing solution.

Apply for Construction Loan

Frequently Asked Questions

A construction-to-permanent loan (C-to-P) is a single loan that covers both the construction phase and becomes your permanent mortgage once construction finishes. You close once, lock your permanent rate upfront, and make interest-only payments during construction.

Construction loans require substantial equity: typically 20-25% of total project costs (land + construction). Owner-builder programs may require 25-30%. Portfolio programs for high-net-worth clients may offer lower with strong collateral.

Construction financing is riskier, so credit standards are higher: typically 680+ for conventional construction programs. FHA 203(k) requires 580+ for 3.5% down options. Portfolio underwriting may approve lower with strong compensating factors.

Construction funds are disbursed in draws (typically 5-7 stages): foundation, framing, rough-ins, drywall, finishes, final. An independent inspector verifies completion before each draw is released. Funds usually disburse within 48 hours of inspection approval.

Owner-builder construction loans are available but less common and require significant building experience, higher down payments (25-30%), and extensive documentation of your capability. Most lenders prefer licensed, insured general contractors to mitigate risk.

An FHA 203(k) combines purchase price and renovation costs into one government-insured mortgage. Perfect for fixer-uppers. Requires as little as 3.5% down. Two types: Standard (major rehab) and Limited (up to $35,766 for repairs).

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