Construction Loans

Starting As Low As X.XX% / X.XX% APR*

If you’re looking to build a house from the ground up, home building loans provide financing for a variety of home construction projects. These versatile loans can cover labor, materials, and other building costs, then transition to permanent mortgage financing once the home is complete.

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Want to Fast-Track Your Home Build?

At Equinox Home Financing, we specialize in helping you navigate the complexity of home construction financing, from planning and budgeting to builder requirements and draw schedules.

Program Features

Finance the land purchase, building materials, and contractor labor
Interest-only payments during the construction phase
Funds are released through staged draws based on building progress
One-time close and other construction-to-permanent loan options
Structured financing designed for ground-up builds

Power tools with man doing work in the background

Since the home does not yet exist, construction loans follow different approval and funding processes compared to traditional mortgages. Qualification typically involves detailed documentation, including blueprints and builder contracts.

Our structured approach helps you set a realistic budget, offering guidance and oversight as you transform your plans into a finished home.

We work closely with you and your builder to ensure your home construction loan supports a successful and timely move-in.

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How It Works

Apply & Submit Plans

Share your project details—proposed budget, timeline, builder credentials, and land information. These essentials form the foundation of the loan approval process.

Approval & Draw Setup

We assess the project’s feasibility with a “subject-to-completion” appraisal. With your construction loan rate and terms locked, we establish a draw schedule to release funds at construction milestones.

Build & Receive Funds

Funds are released to your builder in stages as work is completed and inspected. During construction, your payments are typically interest-only on the amount disbursed. Upon completion, the loan converts to permanent financing or must be paid off or refinanced.

Equinox Makes Construction Financing Easy

We help borrowers navigate the complexity of home construction loans from application through final inspection. You’ll work with an advisor who understands builder coordination, inspections, draw schedules, and the transition to long-term financing.

Why Choose a Construction Loan?

Specialization in residential construction loans
Construction-to-permanent and construction-only loan options
Expert coordination of draw schedules and inspections
Competitive construction loan rates and terms
Support before, during, and after construction

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We are the Alternative Mortgage Financing Experts.

At Equinox Home Financing, we’ve helped thousands of borrowers purchase and refinance homes using some of the industry’s most innovative financing solutions. Put our knowledge and experience to work for you. Contact us today for a free quote and consultation.

Funded Home Loans

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Application to Closing Conversion

Answers to Your Questions

What Is a Construction Loan?

A construction loan is short-term financing that funds the building of a home.

Funds cover land, materials, permits, and construction costs
Requires a qualified general contractor and detailed plans
Funds are released in stages as construction progresses
Loan amounts are based on the completed value of the home
Payments are typically interest-only during construction

Construction loans often have terms of 18 months or less covering the building phase, and are paid off at completion or converted into a long-term mortgage.

How Do Construction Loans Differ from Traditional Mortgages?

Traditional mortgages fund existing homes with a lump sum at closing. With a construction mortgage, funds are typically released in stages.

Requires detailed plans and budgets
Includes inspections before funds are released
Follows a draw-based funding structure

Construction mortgages commonly have higher rates than standard mortgages, with interest-only payments for the amount drawn rather than paying principal and interest.

What Are the Different Types of Construction Loans?

The right loan depends on whether you are building, renovating, or investing.

These may include:

Construction-to-Permanent: A “one-time close” loan that automatically converts to a standard mortgage after construction
Construction-Only: A “two-time close” loan that is paid off or refinanced after construction
Government-Backed: Low-down-payment options (FHA, VA, USDA) for eligible primary residences
Investor/Commercial: Short-term funding for fix-and-flips or building rental properties
Land & Lot Loans: Secures property before construction begins

What Is a Construction-to-Permanent or One-Time Close Loan?

This popular new construction home loan combines construction and permanent financing into one structure.

You may be able to:

Finances both the construction and the final mortgage
Interest-only payments during construction
Automatically converts to a long-term mortgage upon completion
One set of closing costs rather than two separate closings

What Is Needed to Qualify for Home Construction Financing?

During the approval process, mortgage professionals typically want to see:

Borrower Requirements:

Credit scores of 680 or higher
Stable income or substantial liquid assets
Significant down payment (commonly 20-25%)

Project Requirements:

Detailed construction plans and specifications
Fixed-price contract with a licensed builder
Project timeline and budget

Qualifications for home construction financing can be stricter than conventional loans because there’s more risk involved.

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What Are You Waiting For?

Call us today. A licensed representative is on standby to help you with your financing needs. There’s no need to wait any longer. Get financing now!

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*Disclaimer: Advertisement rate and APR Disclosure: Interest rate and APR displayed is from 1/16/26 and is based on a cashout, 50% LTV, 800 FICO, $500,000 loan amount, 1.5 DSCR ratio, and a 5 Year Prepayment Penalty. Example: $500,000 X 8.375% /8.509% APR= $3800.36 P&I monthly payment.