What is a construction loan and who is it for?
A construction loan is a mortgage for borrowers building a new home, with funds disbursed in stages as construction progresses. It can be structured as a construction-to-permanent loan that converts to a long-term mortgage at completion. Mortgage Go originates construction loans through licensed loan officers in the states where each officer is individually licensed.
Who it's for
Borrowers building a new primary residence or second home and managing a construction draw schedule.
Who it's not for
Borrowers purchasing an existing home that needs cosmetic or moderate repair — see Renovation (203k).
Benefits
- Funds disbursed in stages aligned to construction milestones.
- Single-close options available (construction-to-permanent).
- Designed around a builder draw schedule.
- Available for primary and second homes.
Key facts
- Disbursement
- Draws aligned to construction milestones
- Structure
- Construction-to-permanent or two-close
- Minimum credit score
- Placeholder — pending compliance
- Down payment
- Placeholder — pending compliance
Calculator
Construction Loan calculator embeds here in Phase 2.
Frequently asked questions
What is a construction loan?+
A construction loan is a mortgage that finances the building of a new home, with funds disbursed in stages — called draws — as the builder completes construction milestones.
What is a construction-to-permanent loan?+
A construction-to-permanent loan converts from the construction phase to a permanent mortgage when the home is complete, typically with a single closing at the start.