Construction Loans
- Home
- <
- Construction Loans
Construction Loans
Build Your Dream, Brick by Brick With Smarter Financing
Planning to build your perfect home from the ground up? A Construction Loan from Lowcostmortgage gives you the funds, flexibility, and guidance to turn blueprints into reality. From land purchase to the last coat of paint, we’re with you at every stage of construction.
What Is a Construction Loan?
A construction loan is a short-term financing option that covers the cost of building or renovating a home. Unlike standard mortgages, funds are disbursed in stages (“draws”) as construction milestones are completed. Once the project is done, many loans convert into a traditional mortgage for long-term repayment.
Why Choose an FHA Loan with Lowcostmortgage?
One Loan, Two Phases
Finance both construction and permanent mortgage in one streamlined process (construction-to-perm).
Flexible Draws
Funds are released as each stage of your build is finished, keeping costs controlled.
Custom Financing Options
Whether you’re building from scratch, expanding, or renovating, we tailor terms to your needs.
Expert Oversight
We coordinate with builders, inspectors, and appraisers so you stay on track.
Protect Your Budget
Transparent fees, interest-only payments during construction, and clear schedules.
Smooth Conversion
After construction, easily shift into a standard fixed- or adjustable-rate mortgage.
Why Partner with Lowcostmortgage?
Experienced guidance through every stage of building.
Competitive rates & flexible terms for large projects.
Builder & project vetting to safeguard your investment.
Support beyond closing — refinancing, equity access, and more.
How the Construction Loan Process Works with Lowcostmortgage
Project Planning & Pre-Approval
Review your credit, budget, land, and construction plans.
Application & Builder Approval
Submit documents and approve your licensed contractor or builder.
Loan Approval & Terms
Get loan amount, draw schedule, interest rates, and repayment details.
Draw Disbursements & Inspections
Funds released in stages; inspections verify work completion.
Completion & Conversion
Once your home is built, the loan either closes or rolls into a traditional mortgage.
Move Into Your Dream Home
Enjoy the space you designed and built.
Watch How We Make Homeownership Simple & Stress-Free
From securing the right mortgage to finding the best loan options, we’re here to guide you every step of the way. Our short video explains how we help first-time buyers, families, and investors achieve their financial goals with competitive rates, flexible terms, and personalized support.
FAQ
Ans: A construction loan provides short-term financing during the building phase, with funds released in stages (draws). Once the home is complete, it can convert into a traditional mortgage
Ans: Down payments typically range from 10%–20%, depending on your credit profile, project cost, and lender requirements.
Ans: Money is released in “draws” at key milestones—like foundation, framing, and final touches—after inspections confirm progress.
Ans: Once your project is complete, your loan usually converts into a permanent mortgage with fixed or adjustable terms, so you make one consistent monthly payment.
Ans: Yes. Construction loans can fund major renovations, expansions, or rebuilds—not just brand-new builds.
Ans: Not always. Many construction loans can include financing for both land purchase and home construction in a single package.
