Construction Loans
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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Construction Loan: Program Highlights & Borrower Benefits
Our Construction Loan is built for borrowers who want to finance the construction of a new home — whether building on owned land or purchasing a lot as part of the project.
Instead of securing separate loans for construction and permanent financing, this program can combine both into one streamlined solution.
This is designed for borrowers who want to build — without unnecessary financing complexity.
Program Features
Loan Amounts: $200,000 – $5,000,000+ (varies by project and leverage)
Property Types: Single-family, townhomes, 1–4 unit properties
Occupancy: Non-owner occupied investment properties only
Purchase Financing: Up to 95% of purchase price
Land Financing: Can include lot purchase or leverage owned land equity
Experience: First-time and seasoned investors considered
Max Leverage: Up to 75% of After Repair Value (ARV)
Loan Terms: Typically 12–24 month interest-only bridge financing
Min Credit Score: 680+ (720+ preferred for stronger pricing)
Income Documentation: Minimal to none, depending on scenario
Reserves: Varies based on project size and borrower profile
Non-Dutch monthly payments; only pay on what you’ve spent. Qualify without permits or blueprints to secure your deal first. Easy to qualify as long as the cost to build and the ARV make sense.
This program rewards borrowers who want to build custom while keeping financing efficient and structured.
Program Highlights
Loan Amounts: $200,000 – $5,000,000+ (varies by project and leverage)
Purchase Financing: Up to 95% of purchase price
Land Financing: Can include lot purchase or leverage owned land equity
Max Leverage: Up to 75% of After Repair Value (ARV)
Min Credit Score: 680+ (720+ preferred for stronger pricing)
Property Types: Single-family, townhomes, 1–4 unit properties
Occupancy: Non-owner occupied investment properties only
Experience: First-time and seasoned investors considered
Loan Terms: Typically 12–24 month interest-only bridge financing
Income Documentation: Minimal to none, depending on scenario
Reserves: Varies based on project size and borrower profile
Non-Dutch monthly payments; only pay on what you’ve spent. Qualify without permits or blueprints to secure your deal first. Easy to qualify as long as the cost to build and the ARV make sense.
This program rewards borrowers who want to build custom while keeping financing efficient and structured.
How It Works
Apply Online
Get Approved
Fund
Apply Online
Get Approved
Fund
Equinox Makes Financing Easy for Home Builders
We help align financing with the construction timeline to reduce friction, avoid surprises, and improve execution.
The goal isn’t just financing the build. The goal is getting you from blueprint to move-in with confidence.
We help you present the project clearly and strategically.
Why Choose a Construction Loan?
If you have the vision and the builder, this program works in your favor.
You designed the home.
Now let the financing help you build it.
We are the Alternative Mortgage Financing Experts.
Funded Home Loans
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Application to Closing Conversion
Funded Home Loans
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Application to Closing Conversion
Answers to Your Questions
What Is a Construction Loan?
- 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 convert 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?
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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