Construction Financing -

Because there is no finished house to serve as collateral, qualification is stricter than for standard mortgages.

: Only available if the borrower is also a licensed professional builder who will act as the general contractor. Eligibility & Requirements

: This loan automatically converts into a long-term mortgage (15 or 30 years) once the house is finished. It is popular because you only pay closing costs once. construction financing

: Specifically for buyers purchasing a "fixer-upper" to finance both the home purchase and significant upgrades.

: This includes your building plans, materials list, and project timeline. Because there is no finished house to serve

: Most lenders require a score of at least 680 , though some may accept 620.

: Once closed, construction begins and the lender starts the draw-and-inspection cycle. It is popular because you only pay closing costs once

: These loans typically last 12 to 18 months , covering only the building phase.