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Build Your Dream Home with Construction Loan Financing
From groundbreaking to grand opening—secure construction-to-permanent financing with one closing, competitive rates, and expert guidance through every phase of your custom build.
- Purchase
- Refinance
- Cash Out
- Consolidation
- Residence
- Investment
Single Closing
One-time close saves time and closing costs
Competitive Rates
Lock in permanent loan rates upfront
Build Equity Fast
Start building home equity from day one
15+ Years
Construction Lending Expertise
99%
On-Time Project Completion Rate
$3B+
Construction Loans Funded
8,000+
Custom Homes Financed
Why Choose Our Construction Loan Program?
Building a custom home is one of life's most exciting investments. Our construction loan program provides the financial foundation and expert support to turn your architectural vision into reality.
Construction-to-Permanent Financing
Seamlessly transition from construction phase to permanent mortgage with a single closing, eliminating the need for two separate loans and reducing closing costs significantly.
One-time close convenience
Interest-Only Payments During Construction
Pay only interest on drawn funds during the construction phase, keeping your monthly payments manageable while your home is being built and before you move in.
Lower payments during build
Lock Your Rate at Closing
Secure your permanent mortgage rate at the initial closing, protecting you from rate increases during construction and providing long-term financial certainty for your custom home.
Rate protection guarantee
Comprehensive Builder Oversight
Our experienced team provides thorough contractor vetting, progress inspections, and draw management to ensure your project stays on track, on budget, and meets quality standards.
Professional project monitoring
Flexible Property Types
Finance construction of single-family homes, custom estates, modular homes, or substantial renovations with flexible terms tailored to your specific building project and timeline.
Multiple property options
Build Immediate Equity
Start building home equity from the first day of construction rather than waiting until completion, giving you a financial advantage and potential refinancing opportunities sooner.
Equity growth from day one
Perfect for All Types of Custom Home Builders
First-Time Custom Home Builders
Expert guidance through every phase of your first custom build with simplified approval and comprehensive project oversight.
Move-Up Buyers Building Dream Homes
Leverage your existing home equity to finance construction of a larger, custom-designed property tailored to your lifestyle.
Experienced Builders and Contractors
Competitive rates and flexible terms for contractors building spec homes or custom projects for clients with streamlined draw processes.
Construction-to-Permanent vs. Traditional Two-Loan Method
See why smart home builders choose our single-close construction loan over traditional separate construction and mortgage loans.
| Feature | Traditional Two-Loan Method | Our Construction Loan |
|---|---|---|
| Number of Closings | Two separate closings required | Single closing saves time and money |
| Rate Lock Protection | Must relock rate after construction | Lock permanent rate at initial closing |
| Closing Cost Efficiency | Pay closing costs twice | Pay closing costs only once |
| Construction Phase Payments | Higher interim financing costs | Interest-only on funds drawn |
| Project Oversight | Limited lender involvement | Professional inspections and draw management |
| Equity Building Timeline | Equity starts after final closing | Build equity from construction start |
| Approval Complexity | Two separate approval processes | Single streamlined approval |
| Total Borrowing Costs | Higher total costs and fees | Lower overall financing costs |
The Clear Advantage for Custom Home Builders
Our construction-to-permanent loan eliminates the complexity, risk, and extra costs of traditional two-loan financing. With a single closing, locked rates, professional oversight, and immediate equity building, you'll save thousands in closing costs while enjoying peace of mind throughout your custom home construction journey.
Your Construction Loan Journey: Step by Step
We guide you through every phase of construction financing—from initial approval to moving into your completed custom home. Here's what to expect.
01
Pre-Qualification & Planning
Submit your loan application along with construction plans, builder contracts, project budget, and cost estimates. We'll review your financial profile and project feasibility to determine loan amount approval.
Timeline: 1-3 business days
02
Property Appraisal & Builder Verification
Our team orders an 'as-completed' appraisal based on your construction plans and verifies your builder's credentials, insurance, and licensing to ensure project success.
Timeline: 7-10 business days
03
Loan Approval & Construction Start
Receive final loan approval, lock your permanent rate, and close on the construction loan. Initial funds are disbursed for land purchase (if needed) and construction begins with foundation work.
Timeline: 2-3 weeks
04
Construction Phase & Draw Management
During the 6-12 month build, we conduct professional inspections at each construction milestone and release funds as work is completed. You pay interest only on funds drawn during this phase.
Timeline: 6-12 months
05
Final Inspection & Certificate of Occupancy
Once construction is complete, a final inspection confirms the home meets all building codes and matches approved plans. The certificate of occupancy is issued by local authorities.
Timeline: 1-2 weeks after completion
06
Automatic Conversion to Permanent Mortgage
Your construction loan seamlessly converts to a traditional permanent mortgage at your locked rate—no second closing required. Your monthly payments now include principal and interest on the full loan amount.
Timeline: Immediate upon occupancy
Total Timeline: 7-14 Months from Application to Move-In
Most custom home construction projects take 6-12 months to build, with an additional 3-8 weeks for initial approval and final conversion. Our streamlined process and expert oversight keep your project on schedule.
1
Single Closing Required
6-12
Months Average Build Time
0
Second Closing Needed
Success Stories from Our Custom Home Builders
Hear from homeowners and contractors who successfully financed and completed their custom construction projects with our expert guidance and flexible financing.
Michael & Sarah Chen
Custom Home Builders
Austin, TX
"Building our dream home seemed overwhelming until we found E Mortgage Capital. The single-close construction loan saved us thousands in closing costs, and their team guided us through every inspection and draw. Our contractor loved working with them too—professional and responsive throughout the entire 10-month build."
David Thompson
Real Estate Developer
Charlotte, NC
"As a contractor building spec homes, I've worked with many lenders. E Mortgage Capital's construction loan program is by far the best—competitive rates, reasonable draw schedules, and quick inspection turnarounds that keep projects moving. I've financed 12 homes with them over the past three years and will continue using them exclusively."
Construction Loan Frequently Asked Questions
Get answers to common questions about construction-to-permanent financing, draw schedules, contractor requirements, and the approval process.
A construction-to-permanent loan (also called a single-close or one-time-close loan) combines construction financing and permanent mortgage into a single loan with one closing. This differs from traditional construction financing where you need two separate loans—a short-term construction loan that must be paid off and refinanced into a permanent mortgage after completion. With our program, you close once, lock your permanent rate upfront, and automatically convert to a traditional mortgage when construction is complete, saving thousands in duplicate closing costs and eliminating rate risk during construction.
Down payment requirements typically range from 5% to 20% depending on your credit profile, loan amount, and property type. First-time builders with strong credit (720+) may qualify with as little as 5-10% down, while spec builders or investment properties usually require 20-25% down. The down payment can come from cash, proceeds from selling your current home, or equity from land you already own. We'll work with you to structure the down payment that best fits your financial situation and construction project.
Construction funds are released in scheduled installments called 'draws' as specific construction milestones are completed and verified through professional inspections. Typical draw schedules include: foundation completion, framing and roof completion, rough plumbing/electrical, drywall and interior finishes, and final completion. Before each draw, we conduct an on-site inspection to verify the work matches your approved plans and budget. You only pay interest on the cumulative amount drawn, not the total loan amount, keeping your costs lower during construction.
If construction costs exceed your original approved budget, you have several options depending on the circumstances. Minor overruns (5-10%) can often be covered through contingency reserves built into most construction budgets. For larger overruns, you may need to provide additional cash, reduce scope elsewhere in the project, or apply for a loan increase (subject to reapproval and additional appraisal). This is why we emphasize thorough planning, detailed cost estimates, and working with experienced contractors during the application process—preventing budget overruns is much easier than resolving them mid-construction.
Most construction loan programs require you to use a licensed, insured general contractor with verifiable experience and references. However, some lenders offer 'owner-builder' or 'self-general contractor' programs if you have documented construction experience, proper licensing, and can demonstrate project management capability. Using a family member as contractor is possible if they meet all professional licensing, insurance, and experience requirements and agree to formal contractor agreements. We evaluate these situations individually, as proper contractor oversight is essential for protecting both your investment and our collateral during construction.
Construction loans typically require minimum credit scores of 680-700, though we can work with scores as low as 640 in some cases with larger down payments and compensating factors. Income documentation requirements are similar to traditional mortgages—most borrowers provide W-2s, pay stubs, and two years of tax returns. Self-employed applicants need two years of business tax returns and may use bank statement programs if they write off significant business expenses. Additionally, we'll evaluate your cash reserves (typically requiring 6-12 months of payments as reserves), debt-to-income ratios, and construction project feasibility when making approval decisions.
Initial pre-qualification can be completed within 1-3 business days once we receive your application and supporting documents. Full approval including property appraisal, builder verification, and construction plan review typically takes 2-4 weeks. The appraisal is critical—the appraiser must review your construction plans and provide an 'as-completed' value, which takes longer than standard home appraisals. Once approved, you can close on the construction loan within 7-10 business days. Total timeline from application to closing averages 4-6 weeks, though complex projects or unique properties may take longer.
We finance a wide variety of construction projects including: new single-family custom homes on your own lot, spec homes built by contractors for future sale, substantial renovations or additions that require permits and licensed contractors, modular or manufactured home installation on permanent foundations, and tear-down rebuilds where you demolish an existing structure and build new. We typically cannot finance projects on non-traditional foundations, commercial properties, or construction without proper permits and licensed contractors. Each project type has specific requirements, so contact us to discuss your specific construction plans and financing needs.
Still Have Questions About Construction Financing?
Our construction loan specialists are here to help. Schedule a free consultation to discuss your custom home project, review construction plans, and get personalized financing solutions.
Schedule Free Consultation
Ready to Break Ground on Your Custom Dream Home?
Our construction loan specialists provide the financing expertise and project oversight to turn your architectural plans into reality. Get pre-qualified today and lock in competitive rates for your custom build.
Construction Loans
- Purchase
- Refinance
- Cash Out
- Consolidation
- Residence
- Investment
You can use Construction Mortgage Loans for the financing purposes of PURCHASE, REFINANCE, CASH-OUT, DEBT-CONSOLIDATION, RENOVATION, REHAB, REMODEL, GROUND UP CONSTRUCTION for both your primary residence and for rental investment property.
Build Your Home with Flexible Financing
Finance your dream home from the ground up with flexible construction financing.
Key Features:
One-time close option
Flexible draw schedule
Custom home building
Construction-to-permanent
Construction Loan Benefits
Build Your Dream Home
Design and build a custom home that perfectly meets your needs and preferences instead of compromising with existing properties on the market.
One-Time Close Option
Some construction loans offer a single closing for both the construction phase and permanent mortgage, saving you time and closing costs.
Flexible Draw Schedule
Funds are disbursed in stages as construction progresses, meaning you only pay interest on the amount that has been drawn.
Construction-to-Permanent
Once construction is complete, your loan automatically converts to a traditional mortgage, streamlining your path to homeownership.
Professional Oversight
Lenders provide oversight and stage inspections to help keep your build on schedule and within budget.
Various Program Options
Choose from conventional, FHA, VA, and USDA construction loans depending on your needs and qualifications.
Documentation You'll Need
The list of documentation items shown below is a good general list. However, based on your borrower profile overlayed with the specific loan program underwriting guidelines, you may need to provide additional information. In some circumstances, you may not need to provide the entire list of items. Speak with Rodney Rose, your trusted loan officer, for your specific documentation needed.
Tax returns - You will need to fill in a Form 4506-T, and provide your tax forms (the last 2 years should suffice).
Pay stubs, W-2s, 1099's, K-1's, or other proof of income -These include your most recent 1 month of pay stubs. If you are self-employed you must provide the two most recent tax returns as well as a year-to-date profit and loss statement. If you file a separate business tax return, you will need to provide the most recent 2 years along with a year-to-date profit and loss statement.
Bank statements and other assets - Lenders need your most recent 2 months bank statements and may request proof of your retirement accounts, assets, as well as other investment accounts.
Credit history and FICO score - Your credit report will be obtained which will provide details of your credit payment history, including any episodes of bankruptcies or foreclosures.
Gift letters - If any friend or family member wants to help you with the down payment or closing costs by offering you some cash you must provide a “gift letter” which states that the money is a gift and not a loan.
Photo ID - Provide a government issued ID with photo such as a driver's license or passport.
Renting history - Your history as a tenant on rent to guarantee you can pay your rent bills on time.
Co-Borrower or Co-Signor - If a Co-Borrower or Co-Signor is used in qualifying. You will need to provide all of the same items for them also.
Start Building Your Dream Home Today!
Get pre-approved for a Construction Loan and enjoy flexible financing, one-time close options, and a smooth construction-to-permanent process.
Construction Loan Process
Pre-Approval
Determine your construction budget by understanding different loan programs and maximum loan amounts.
Land Purchase
If you don’t already own land, your construction loan can include funds for the lot purchase. Some borrowers secure the land first with a separate loan.
Builder Selection & Plans
Choose a qualified builder, finalize architectural plans, and obtain detailed cost breakdowns and construction timelines for lender review.
Appraisal & Approval
An appraisal will determine the completed value based on your plans and specifications. The lender will review your complete application for approval.
Loan Closing
Once approved, you’ll close on your construction loan. If you’re purchasing land simultaneously, those funds will be disbursed at closing.
Construction Phase
Construction begins with periodic inspections and draw disbursements as work progresses. Interest is typically only charged on funds that have been disbursed.
Construction Loan Eligibility
Credit Score
Most construction loans require a minimum credit score of 680 or higher, with lower rates available for scores above 740.
Down Payment
Typically 20–25% for conventional construction loans.
Some government-backed options like VA and FHA may offer lower down payment requirements.
Debt-to-Income Ratio
Maximum DTI ratios typically range from 36–45%, with lenders focusing on your ability to handle potential cost overruns.
Builder Approval
Licensed, insured builders with a proven track record of quality construction are required.
Most lenders will need to approve your builder.
Plans & Specifications
Detailed architectural plans, specifications, and a construction contract with a fixed price and build timeline are needed for approval.
Reserves & Contingency
Cash reserves for potential cost overruns (typically 10–15% contingency) and several months of housing payments are usually required.
Frequently Asked Questions
What types of construction loans are available?
Common construction loan programs include: one-time close construction-to-permanent loans, two-time close construction loans, FHA construction loans, VA construction loans, and renovation construction loans for major rehabs.
How much can I borrow with a construction loan?
Loan amounts are typically based on the lesser of the construction cost or a percentage of the appraised value of the completed home (typically up to 80–95% depending on the program). Minimum loan amounts vary by program and location.
How are construction loan funds disbursed?
Funds are disbursed in draws (typically 5–7) at predetermined stages of construction after inspection confirms the work has been completed. Interest is only charged on the amount disbursed, not the total loan amount.
What’s the difference between one-time and two-time close loans?
A one-time close loan combines the construction financing and permanent mortgage into a single loan with one closing, saving time and closing costs. A two-time close involves two separate loans: a short-term construction loan followed by a permanent mortgage once construction is complete.
E Mortgage Capital, Inc. is a full-service mortgage company that offers extensive options for residential mortgages, with quick service and leading rates
Loan
Information
About
Legal
Rodney Rose
NMLS#: 1396861
DRE#: 00853403
E Mortgage Capital, Inc.
NMLS#: 1396861
DRE#: 00853403
Locations
915 Highland Pointe Dr, Roseville, CA 95678, USA
3401 Mallory Ln, Franklin, TN 37067, USA
3750 S Susan Street Santa Ana, CA 92704
