Construction Loans

General Overview

A short-term interim loan for financing the cost of construction. The lender advances funds to the builder at periodic intervals as the work progresses. Once the construction has been completed the loan typically is converted or refinanced to traditional longer-term loans.

This gives the borrower the ability to acquire vacant land if not already owned and build a new dwelling. The land if owned already can be used as the down payment.


Generally, if you can get a traditional conventional loan, you should be able to get a construction loan. That being said, a conventional loan will likely require more down payment, making a construction loan advantageous.

The requirements are the same in Ohio and Florida.


Can I transition from a construction loan to a permanent loan?

Yes. Construction/Perm or CP or Construction to Permanent is a loan that offers typically interest only for the construction period then converts to a permanent loan once the construction is completed.

Is there an FHA/VA/USDA One-Time Close option?

Yes. This is a one-time close construction option, it allows the borrower to acquire land, and build with low to no down payment. There is a construction period that is interest-only then converted (recast) to a fully amortized loan.