Construction Loans & New Build Financing in Florida 2026: Complete Guide

Building a custom home in Florida is both exciting and daunting. The dream of designing your perfect home exactly how you want it comes with the reality of navigating construction financing—one of the most complex and misunderstood areas of mortgage lending. After 20+ years of helping Florida borrowers finance new construction, I can tell you that most people dramatically underestimate the complexity, timeline, and costs involved.

Construction loans aren’t like regular mortgages. They require larger down payments (typically 20-25%), involve progress inspections and draw schedules, charge interest during construction on the amount disbursed (not the full loan), and convert to permanent financing after completion. The application process is more intensive, approval requirements are stricter, and delays are common. But for buyers who want to build their dream home or investors developing properties, construction financing makes it possible.

This guide covers everything you need to know about construction loans and new build financing in Florida: the different types of construction loans, how draw schedules work, what builders versus owner-builders need to qualify, realistic timelines and costs, how to choose between builder financing and third-party lenders, and the specific challenges of building in Florida (hurricane codes, permitting delays, contractor availability, material costs). Whether you’re building a custom home from scratch or buying a new construction home from a production builder, you’ll understand your financing options and what to expect.

Types of Construction Loans: Understanding Your Options

Not all construction loans work the same way. The type you need depends on whether you’re building from scratch, buying new construction, or renovating extensively.

Construction-to-Permanent Loans (Single-Close Loans)

This is the most common and convenient option for custom home builds. You close on one loan that covers both the construction phase and converts automatically to a permanent mortgage when construction is complete.

How it works:

1. You apply and close on the full loan amount (land cost + construction costs)
2. During construction (typically 6-12 months), you make interest-only payments on the amount disbursed so far
3. The lender disburses funds in stages as construction progresses (draw schedule)
4. When construction is complete and you receive a certificate of occupancy, the loan automatically converts to a permanent mortgage
5. You begin making regular principal and interest payments based on the full loan amount

Advantages:

• One application, one closing, one set of closing costs
• Your interest rate is locked from the beginning (protects you if rates rise during construction)
• Simpler than two separate transactions
• Lower overall costs than construction-only plus separate permanent loan

Disadvantages:

• If rates drop during construction, you’re stuck with your original rate (though you can refinance after completion)
• Stricter qualification requirements than construction-only loans
• Not all lenders offer construction-to-permanent products

Who this works for: Owner-occupied custom home builds where you own the land or are purchasing land as part of the loan.

Construction-Only Loans (Two-Close Loans)

These loans only cover the construction period. When construction is complete, you must obtain a separate permanent mortgage to pay off the construction loan.

How it works:

1. You close on a construction-only loan covering land and/or build costs
2. During construction, you make interest-only payments on disbursed funds
3. When complete, you apply for a permanent mortgage and close on it
4. The permanent mortgage pays off the construction loan
5. You now have a regular 30-year mortgage

Advantages:

• You can shop for the best permanent mortgage rate after construction (if rates have fallen)
• More lenders offer construction-only than construction-to-permanent
• Sometimes easier qualification since you’re not committing to permanent terms upfront

Disadvantages:

• Two closings mean double closing costs ($3,000-$5,000 for construction loan + $8,000-$12,000 for permanent mortgage)
• Rate risk—if rates rise during construction, your permanent mortgage will be at the higher rate
• You must qualify twice (construction approval doesn’t guarantee permanent loan approval if your situation changes)
• More complex process with two separate applications and closings

Who this works for: Builders and developers who will sell the property before needing permanent financing, or borrowers willing to take rate risk for potential savings.

Renovation/Rehab Construction Loans

For major renovations or gut rehabs rather than ground-up construction. FHA 203(k) and conventional HomeStyle renovation loans fall into this category.

FHA 203(k): Allows you to purchase a property and finance renovation costs into a single loan. Minimum down payment is 3.5%. This works for properties needing significant repairs that wouldn’t qualify for standard FHA financing in their current condition.

Conventional HomeStyle Renovation: Similar concept but conventional instead of FHA. Minimum down payment is 5% for primary residences. Can be used for more extensive renovations than 203(k) in some cases.

These are complex loans with contractor requirements, detailed work specifications, and inspection schedules. They bridge the gap between standard mortgages (which require the property to be move-in ready) and construction loans (which are for ground-up builds).

Builder Financing Programs

Many production builders (KB Home, Lennar, Pulte, etc.) offer their own financing through captive mortgage companies. These programs sometimes include incentives like closing cost credits, rate buy-downs, or free upgrades if you use the builder’s lender.

Advantages:

• Simplified process—builder and lender coordinate directly
• Potential financial incentives ($5,000-$15,000 in closing costs credits or upgrades)
• Builder familiar with the lender’s requirements and timeline

Disadvantages:

• Interest rates might not be competitive (the incentives sometimes mask higher rates)
• Less flexibility in loan terms
• Pressure to use builder’s lender (though you’re not legally required to)

The decision: Get quotes from both the builder’s lender and independent lenders. Calculate total costs including rate, points, and incentives. Sometimes the builder incentive makes their financing worthwhile even with a slightly higher rate. Other times, you save more money using an independent lender with a better rate despite losing the incentive.

Loan Type	Best For	Down Payment	Number of Closings
Construction-to-Permanent	Custom builds, owner-occupied	20-25%	One (single-close)
Construction-Only	Builders, developers, spec homes	20-25%	Two (construction + permanent)
FHA 203(k) Renovation	Major renovations, fixer-uppers	3.5%	One
HomeStyle Renovation	Extensive renovations, conventional	5-20%	One
Builder Financing	Production builder new construction	3-20% (varies)	One

Qualification Requirements for Construction Loans

Construction loans have stricter qualification requirements than standard purchase mortgages because they’re riskier for lenders. You’re borrowing against a property that doesn’t exist yet, and construction projects can go over budget, over schedule, or fail entirely.

Credit Score Requirements

Construction-to-permanent loans: Minimum 680 credit score, preferably 700+. The higher your score, the better your rate and terms. Below 680, very few lenders will approve construction loans.

Construction-only loans: Minimum 680-700 depending on lender and loan size. Larger loans require higher scores.

FHA 203(k): Minimum 500 with 10% down or 580 with 3.5% down, though most lenders prefer 620-640+ for smoother approval.

Down Payment Requirements

Owner-occupied custom builds: 20-25% down payment is standard. Some lenders allow 15% down for well-qualified borrowers with excellent credit and strong reserves, but 20% is the norm.

If you already own the land, your equity in the land can count toward the down payment. Example: Land worth $100,000 (owned free and clear) + $400,000 construction budget = $500,000 total project cost. Your $100,000 land equity equals 20% down, so you’re borrowing $400,000 for construction.

Investment/spec builds: 25-30% down payment minimum. Lenders view these as higher risk since you’re building to sell rather than occupy.

Renovation loans: FHA 203(k) allows 3.5% down, HomeStyle Renovation requires 5-20% depending on whether it’s primary residence or investment property.

Income and Debt-to-Income Requirements

Your debt-to-income ratio (DTI) is calculated based on the permanent mortgage payment, not the construction-phase interest-only payment. On a $400,000 construction loan at 7.5%, your permanent payment will be approximately $2,800/month (P&I). This is what counts against your DTI, even though during construction you’re only paying interest.

Maximum DTI is typically 43-45% for construction loans, slightly stricter than the 50% allowed for standard conventional mortgages. Lenders want extra cushion because construction projects often have unexpected costs.

Cash Reserves

Lenders require significant cash reserves beyond your down payment:

• Minimum 6-12 months of reserves: Cash equal to 6-12 months of your total housing payment (principal, interest, taxes, insurance) after closing. On a $2,800/month payment, that’s $16,800-$33,600 in reserves.
• Construction contingency: Many lenders require 10-20% of the construction budget in reserves to cover cost overruns. On a $400,000 build, that’s $40,000-$80,000 in additional reserves beyond your normal requirements.

These reserve requirements are why construction loans aren’t feasible for many borrowers—you need 20% down payment + 6-12 months reserves + 10-20% construction contingency. On a $500,000 total project, you might need $175,000-$225,000 in total liquid assets to qualify comfortably.

Detailed Construction Plans and Budget

You need comprehensive documentation:

• Architectural plans: Complete blueprints showing floor plans, elevations, and specifications
• Detailed cost breakdown: Line-item budget for all construction costs (foundation, framing, roofing, electrical, plumbing, HVAC, finishes, etc.)
• Builder contract: Signed contract with your general contractor specifying scope of work, timeline, payment schedule, and total cost
• Builder qualifications: Lenders vet your builder—they want licensed, insured contractors with proven track records, not your brother-in-law who flips houses on weekends
• Permits: Evidence that you can obtain necessary building permits (some lenders want permits in hand before closing, others will close before permits are issued)

How Draw Schedules Work

Construction loans don’t give you all the money upfront. Funds are disbursed in stages as construction progresses. This protects the lender by ensuring money is only released for completed work.

Typical Draw Schedule Stages

Most construction loans have 4-6 draws. Here’s a common structure:

Draw 1 – Foundation (10-15% of budget): Disbursed when foundation is poured and inspected. Covers site prep, excavation, and foundation work.

Draw 2 – Framing and Rough-In (25-30%): Released when framing is complete, roof is on, and rough plumbing/electrical/HVAC are installed but not finished.

Draw 3 – Mechanicals and Exterior (20-25%): When HVAC, plumbing, electrical are substantially complete, drywall is up, exterior is finished (siding, windows, doors).

Draw 4 – Interior Finishes (20-25%): When interior finishes are substantially complete (flooring, cabinets, countertops, painting, trim).

Draw 5 – Final/Completion (10-15%): When construction is 100% complete, final inspection passed, certificate of occupancy issued, and all punch-list items addressed.

Some lenders use more granular schedules (6-8 draws), others use fewer (3-4 draws). The percentages vary by lender and project type.

How Inspections Work

Before each draw, the lender sends an inspector to verify the work is complete as claimed. The inspector is typically a licensed contractor or appraiser who assesses whether the stage of completion matches the requested draw amount.

If you request a $150,000 draw claiming framing is complete, but the inspector sees framing is only 75% done, the lender will only disburse $112,500 (75% of the requested $150,000). You get the remaining $37,500 on the next draw after framing is actually finished.

Inspection fees are typically $150-$300 per draw, paid by you. On a 5-draw schedule, budget $750-$1,500 in total inspection fees.

Interest-Only Payments During Construction

During the construction period, you make interest-only payments on the amount disbursed so far.

Example: $400,000 construction loan at 7.5% interest.

Month 1: $50,000 disbursed for foundation. Interest-only payment: $50,000 × 7.5% ÷ 12 = $313

Month 3: Additional $120,000 disbursed (total $170,000). Interest-only payment: $170,000 × 7.5% ÷ 12 = $1,063

Month 6: Additional $150,000 disbursed (total $320,000). Interest-only payment: $320,000 × 7.5% ÷ 12 = $2,000

Month 9: Final $80,000 disbursed (total $400,000). Interest-only payment: $400,000 × 7.5% ÷ 12 = $2,500

Your payment increases each month as more funds are disbursed. You need to budget for this rising payment during construction. By the end, you’re paying interest on the full loan amount, which is similar to what your permanent payment will be (except permanent includes principal repayment, making it higher).

What If Construction Goes Over Budget?

This is common. Material costs increase, you make design changes mid-construction, or unexpected issues arise (bad soil requiring extra foundation work, rotted beams discovered during renovation, etc.).

Options when you exceed budget:

Use your contingency reserves: This is why lenders require 10-20% contingency reserves. If your $400,000 budget becomes $425,000, you pay the extra $25,000 from reserves.

Reduce scope: Eliminate some features, choose cheaper finishes, or defer certain work until after you move in.

Bring additional cash: If you have more savings, you can inject additional equity to cover overruns.

Request a loan increase: If the property value supports it (verified by a new appraisal), the lender might increase your loan amount. This is difficult and not guaranteed—most lenders are reluctant to increase construction loans mid-project.

The worst scenario is running out of money mid-construction with no way to complete the project. This is why conservative budgeting and adequate contingency reserves are critical.

Realistic Timelines for Construction in Florida

Construction takes longer than most people expect, especially in Florida with permitting delays, hurricane season work stoppages, and contractor availability issues.

Pre-Construction Phase (2-6 months)

Design and planning: Working with architects and designers to finalize plans: 4-12 weeks.

Permits: Obtaining building permits in Florida: 4-12 weeks depending on the municipality. Some jurisdictions approve permits in 2-3 weeks. Others take 3-4 months, especially for custom homes or complex projects.

Site preparation: Clearing, grading, utility connections, staking: 2-4 weeks.

Many builders won’t lock in pricing or timelines until permits are in hand because permit requirements can force design changes.

Construction Phase (6-12 months)

Foundation: 2-4 weeks from excavation to completed foundation.

Framing and roof: 4-8 weeks for framing, sheathing, and roofing.

Mechanicals (plumbing, electrical, HVAC): 4-6 weeks for rough-in.

Insulation and drywall: 3-4 weeks.

Interior finishes: 6-10 weeks for flooring, cabinets, countertops, trim, painting, fixtures.

Final inspections and punch list: 2-4 weeks.

Total: 6-9 months for standard custom homes if everything goes smoothly. Add 2-4 months for luxury custom homes with complex features.

Common Delays in Florida

Hurricane season: June through November brings weather delays. Expect 1-3 weeks of weather-related delays during this period for exterior work.

Material shortages: Post-COVID supply chain issues, though improving, still cause occasional delays for specific materials (windows, appliances, specialized items).

Contractor availability: Good contractors are busy. They juggle multiple projects, and your project might get delayed when they prioritize others.

Permitting and inspection delays: Building inspectors have schedules that don’t always align with your contractor’s timeline. A failed inspection requiring corrections can delay the project by 1-2 weeks while corrections are made and re-inspection scheduled.

Change orders: If you make changes mid-construction, expect delays while new materials are ordered and work is adjusted.

Budget 9-12 months for standard custom builds, 12-15 months for large or complex projects. Assume things will take longer than promised.

Costs Beyond the Construction Budget

The construction contract isn’t your only expense. Budget for these additional costs:

Land Purchase or Land Carrying Costs

If you don’t already own the land, you need to purchase it. If you do own it but have a mortgage, you’ll continue making those payments during construction.

Some lenders include land purchase in the construction loan. Others require you to own the land free and clear or have substantial equity before approving construction financing.

Financing Costs

• Origination fees: 1-2% of the loan amount ($4,000-$8,000 on a $400,000 loan)
• Appraisal: Construction appraisals cost more than standard appraisals: $800-$1,500
• Inspection fees: $150-$300 per draw × 5 draws = $750-$1,500
• Interest during construction: You’re paying interest-only during construction. On a $400,000 loan at 7.5% over 9 months, you’ll pay roughly $18,000-$22,000 in interest before the permanent mortgage begins
• Title insurance and closing costs: $3,000-$5,000

Total financing costs: $25,000-$40,000+ on a $400,000 construction loan.

Design and Permitting Costs

• Architect fees: 5-15% of construction costs for custom design. On a $400,000 build, that’s $20,000-$60,000
• Engineering: Structural engineering, if required: $2,000-$8,000
• Surveys: Boundary survey and elevation certificate (required in flood zones): $500-$2,500
• Soil testing: Geotechnical survey if required: $1,500-$5,000
• Permit fees: Building permits and impact fees in Florida: $5,000-$20,000 depending on size and location

Site Costs

• Land clearing and grading: $2,000-$15,000 depending on lot condition
• Well and septic (if not on municipal services): $10,000-$25,000+
• Utility connections: Connecting to water, sewer, electric, gas: $5,000-$20,000
• Driveway and landscaping: Often not included in base construction budget: $10,000-$40,000

Contingency for Overruns

Budget 10-20% of the construction cost for overruns and unexpected expenses. On a $400,000 build, that’s $40,000-$80,000 in contingency.

Experienced builders hit their budgets more consistently, but even well-managed projects typically run 5-10% over initial estimates.

Buying New Construction from Production Builders

Buying from production builders (KB Home, Lennar, Pulte, D.R. Horton, etc.) is simpler than custom construction but has its own considerations.

The Purchase Process

1. Choose your lot and floor plan: Builders offer pre-designed floor plans on specific lots. Limited customization is available.
2. Sign purchase agreement: You contract to purchase a home that will be built or is under construction. The contract specifies price, completion timeline, included features, and upgrade costs.
3. Select upgrades: Within a few weeks of contract, you meet with the design center to choose finishes, upgrades, and options. These costs get added to your purchase price.
4. Builder builds the home: Construction takes 4-8 months typically for production builders (faster than custom builds because processes are standardized).
5. Final walkthrough: 1-2 weeks before closing, you walk through the completed home and create a punch list of items needing correction.
6. Closing: You close on a standard purchase mortgage once construction is complete and the home has a certificate of occupancy.

Financing New Construction from Builders

Your mortgage works like a standard purchase loan, not a construction loan, because the builder is financing the construction themselves and selling you the finished product.

Down payment: 3-20% depending on your loan type (FHA 3.5%, conventional 3-5%, VA 0%).

Qualification: Standard qualification requirements for purchase mortgages.

Rate lock strategy: This is tricky. You’re contracting to buy a home that won’t be ready for 4-8 months. If you lock your rate now, you might pay for a 90-day or 120-day rate lock that costs 0.375-0.50% extra in rate. If you don’t lock and rates rise during construction, you might end up with a much higher rate.

Many buyers float initially and lock 60-90 days before projected completion. If rates rise substantially, they lock earlier despite the cost. If rates fall, they benefit from better pricing.

Builder Delays and Closing Timeline

Builders almost always miss their projected completion dates. A builder might say “closing in September,” but it becomes November. This creates financing challenges:

• Your rate lock expires and needs extension (costly)
• Your lease on your current residence expires and you need temporary housing
• Your moving plans get disrupted

Protect yourself:

• Don’t give notice to vacate your current residence until the home is complete and you have a confirmed closing date
• Use flexible lock periods (60-90 days) or float-down options
• Include penalties in your contract if the builder misses deadlines (though builders often refuse these terms)
• Budget extra for potential temporary housing if your current lease expires before closing

Builder Incentives vs. Independent Financing

Builders offer incentives for using their preferred lender—commonly $5,000-$15,000 in closing cost credits, design center credits, or free upgrades.

Calculate the true cost:

Builder’s lender: 7.25% rate, $10,000 in incentives
Independent lender: 6.875% rate, no incentives

On a $450,000 loan over 30 years:

Builder’s lender at 7.25%: $3,071/month (P&I) – $10,000 incentive received
Independent lender at 6.875%: $2,959/month (P&I) – no incentive

Difference: $112/month in favor of independent lender

Breakeven: $10,000 incentive ÷ $112/month = 89 months (7.4 years)

If you plan to keep the home 10+ years, the independent lender saves more money despite losing the $10,000 incentive. If you plan to sell or refinance in 3-5 years, the builder incentive is more valuable.

Always run these calculations with real numbers before deciding.

Frequently Asked Questions About Construction Loans

Can I act as my own general contractor to save money?

Some lenders allow owner-builder loans where you serve as your own general contractor, but requirements are stricter:

• You need construction experience (previous successful projects)
• Higher down payments (25-30% instead of 20%)
• More detailed project plans and budgets
• Larger reserves (lenders worry about inexperienced owners running over budget)

Unless you have genuine construction experience and project management skills, acting as your own GC is risky. You’ll save the 15-20% general contractor markup, but you risk delays, cost overruns, code violations, and quality issues that cost more than you save.

Most lenders strongly prefer licensed, bonded, insured general contractors with proven track records.

What happens if construction takes longer than expected?

Your construction loan has a specified construction period (typically 12 months). If construction isn’t complete by then, you need an extension.

Extension costs: Typically $500-$1,500 per month to extend the construction period. Some lenders charge a percentage of the loan amount.

If the delay is the lender’s fault (they delayed draws inappropriately), they’ll usually waive extension fees. If it’s due to normal construction delays, you pay for extensions.

After a certain point (18-24 months), some lenders may call the loan due or force you to convert to permanent financing even if construction isn’t complete. This creates major problems. Choose builders with realistic timelines and good reputations for completing on schedule.

Can I live in the home during construction?

Generally, no. Most construction loans prohibit occupancy until construction is complete and you receive a certificate of occupancy. This is for safety and insurance reasons.

For renovation loans (203(k), HomeStyle), you sometimes can live in the home during renovation if the work doesn’t impact habitability (kitchen remodel might be okay, but whole-house gut rehab would not be).

Plan to maintain your current housing until construction is 100% complete and you’ve closed on the permanent mortgage (for construction-to-permanent) or closed on your permanent mortgage (for construction-only loans).

How does the appraisal work for a construction loan?

Construction appraisals are “subject-to” appraisals—the appraiser estimates what the property will be worth when construction is complete, based on the plans and specifications.

The appraiser reviews:

• Architectural plans and specifications
• Construction budget and quality of materials
• Location and lot characteristics
• Comparable sales of similar completed homes in the area

The appraised value must support your total loan amount. If you’re building a $500,000 home (land + construction) and borrowing $400,000, the appraisal must come in at $500,000 or higher.

If the appraisal comes in low (appraised value $475,000 instead of $500,000), you might need to increase your down payment or reduce your construction budget to make the numbers work.

What if I want to make changes during construction?

Change orders are common but expensive:

• Changes cost more mid-construction than if specified initially
• They delay the project while new materials are ordered and work is adjusted
• Lenders need to approve changes that materially affect budget or timeline
• You pay for changes from your contingency reserves or additional cash

Minimize changes by finalizing all design decisions before construction starts. Once framing begins, making changes becomes progressively more expensive and disruptive.

Can I get a construction loan with less than 20% down?

Very difficult for traditional construction-to-permanent loans. Most lenders require 20-25% minimum.

The exception is renovation loans: FHA 203(k) allows 3.5% down, HomeStyle Renovation allows 5% down for primary residences. But these are for renovations, not ground-up construction.

Some portfolio lenders or local banks might offer construction loans with 10-15% down for well-qualified borrowers with excellent credit and strong relationships, but this is rare and usually comes with higher rates.

How do I protect myself from contractor problems?

Construction loans offer some built-in protection through the draw schedule—contractors only get paid as work is completed and inspected. But you should also:

• Hire licensed, bonded, insured contractors (verify all three)
• Check contractor references and view previous projects
• Include detailed specifications in your contract
• Require lien waivers from subcontractors before each draw (prevents mechanics’ liens)
• Stay involved during construction—visit regularly, attend inspections, communicate with your contractor
• Withhold final payment until all punch-list items are complete

Florida has specific lien law protections. Familiarize yourself with mechanics’ lien rights and how to protect against them through proper lie mortgage: 6.50-7.00%

• Construction loan: 7.00-7.75%

 

The rate stays with you when the loan converts to permanent financing (for construction-to-permanent loans). You can refinance after completion if rates have dropped, but you’ll pay closing costs to do so.

What happens if I run out of money before construction is complete?

This is a nightmare scenario. If you exhaust your loan proceeds and contingency reserves before the home is habitable, you’re stuck with:

• An unfinished home you can’t occupy or sell
• Ongoing interest payments on the construction loan
• No additional funds to complete construction

Options:

• Personal loans or credit cards to finance completion (expensive but might be only option)
• Sell the unfinished property at a loss
• Try to get additional financing (very difficult mid-construction)

Avoid this by: conservative budgeting, adequate contingency reserves (20% minimum), choosing experienced contractors, and monitoring spending closely throughout construction.

Can I use a construction loan for an investment property?

Yes, but requirements are stricter:

• 25-30% down payment minimum
• Higher interest rates (0.50-0.75% above owner-occupied rates)
• Larger reserve requirements (12 months instead of 6 months)
• Rental income projections need to be conservative and well-documented

Some lenders don’t offer construction loans for investment properties at all—they only finance owner-occupied primary residences. Shop around if you’re building a rental property or spec home.

How long do I have to wait after construction to refinance?

If you have a construction-to-permanent loan, there’s typically no waiting period to refinance—you can refinance as soon as the loan converts to permanent status if you want to capture a lower rate.

However, practical considerations:

• You just paid closing costs for the construction loan
• Refinancing means paying closing costs again ($8,000-$12,000)
• Lenders might require 6-12 months of payment history on the permanent mortgage before approving a refinance

Unless rates drop dramatically (0.75-1.00%+), refinancing immediately after construction rarely makes financial sense due to the cost of two sets of closing costs in rapid succession.

Final Thoughts: Construction Financing Requires Planning and Patience

After helping dozens of Florida families and builders navigate construction loans over 20+ years, my biggest piece of advice is this: everything takes longer and costs more than you expect. Budget conservatively, maintain substantial reserves, choose experienced contractors, and be patient.

The borrowers who succeed with construction financing are those who:

1. Have realistic expectations about timelines and costs
2. Maintain contingency reserves of 20%+ beyond their budgeted costs
3. Choose qualified, licensed contractors with proven track records
4. Stay actively involved throughout the construction process
5. Understand their financing terms and draw schedule
6. Communicate proactively with their lender and contractor

The borrowers who struggle are those who underestimate costs, run out of money mid-construction, hire unqualified contractors to save money, or assume everything will go according to plan.

Building a custom home can be incredibly rewarding—you get exactly what you want, built to your specifications, in your preferred location. But it requires financial resources, patience, and realistic expectations. Make sure you’re truly ready for the complexity before committing to construction financing.

Brandon Brotsky
Founder & Origination Director
Reach Home Loans
📞 (754) 946-4292
📧 reachus@reachhomeloans.com