Construction loan questions, answered plainly

One loan that pays for building your home and then becomes your long-term mortgage. You apply once, get approved once and close once.

A standalone construction loan ends when the house is finished, and you need a second mortgage to pay it off. That means a second application, approval and closing. This loan skips that step.

Interest-only payments for 12 or 18 months, depending on your builder's construction schedule.

The loan converts to a long-term adjustable-rate mortgage with 3/1, 5/1 or 10/1 options. There's no second closing.

Your builder sets a draw schedule before work starts. As each stage is finished, the work is verified and that draw is paid directly to the builder.

Neil's team, in-house. You and your builder deal with one team from closing to the final draw.

Yes. The equity in your lot can help finance the build. How much counts depends on the lot's value, what you owe on it, and your file.

Yes. Assets can be used as qualifying income. This is a full-documentation loan, so we'll review statements for your assets and income.

Yes. Primary homes, second homes and investment properties are all eligible.

Every build budget includes a 10% contingency for the surprises that come up during construction. Your construction contract also sets the price before closing, which is why we review it closely.

The interest-only period is 12 or 18 months, based on your builder's schedule. If construction runs longer, the loan converts to regular principal-and-interest payments on schedule, so build in some room and tell us early if the build falls behind.

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