Construction financing is where most lenders get vague and most buyers get nervous — draws, inspections, builder approvals, two closings that might be one. I've spent twenty years turning that into a plan you can actually follow: conventional, FHA, VA, and USDA construction options, shopped across dozens of wholesale lenders, with the draw schedule explained before you sign anything.
Price My Build → Run My NumbersEvery major loan family has a construction version, and they inherit the strengths of their parent program. The right one depends on your credit, your down payment, where your lot sits, and whether you've served. We run them side by side — you pick with real numbers.
The flexible one — primary homes and beyond, with pricing that rewards strong credit the same way a standard conventional loan does. Down payments typically start around 5%, and terms vary by lender.
One-time-close construction with FHA's easier credit standards and 3.5% minimum down. Built for buyers who'd qualify for FHA on an existing home but want new instead.
Zero down on the build for eligible veterans, finishing in a permanent VA mortgage. Fewer lenders offer it — which is exactly why a broker who can shop for it matters.
Zero down in USDA-eligible areas — and more of Michigan qualifies than most buyers expect. Single-close construction from the same program behind USDA purchase loans, for qualifying incomes.
One-time-close versions fund the build and the permanent loan together — one approval, one set of closing costs, no re-qualifying at the end. Availability varies by lender; we find who's offering it.
Already own the lot? Its equity can often serve as some or all of your down payment. Family land, up-north acreage, a parcel you paid off years ago — it all works harder than you think.
*One-time-close availability varies by program and wholesale lender. USDA subject to property-location eligibility and household income limits. All construction loans subject to builder approval, plan and budget review, and appraisal of the completed home.
You've been outbid on everything you actually wanted. Building sidesteps the bidding war entirely — nobody escalates against you on a house that doesn't exist yet.
You already own land — inherited, bought years ago, or split from family property. That equity can often stand in for your down payment. And if the lot sits in a USDA-eligible area, zero-down USDA construction may be in play.
You have a builder, or you're close to choosing one. Lenders approve the builder too, so the earlier I see the contract and budget, the smoother underwriting goes.
You're a veteran who wants new construction. VA construction financing exists with zero down — most vets are never told. It's real, and it's worth pricing.
Your credit fits FHA better than conventional. FHA's construction option keeps the 3.5% down and forgiving credit standards — new build included.
You want one approval, not two. One-time-close programs mean you qualify once, close once, and your rate structure is set before the first shovel hits dirt.
Buying a fixer-upper instead of a bare lot? A renovation loan — FHA 203(k) or conventional renovation — funds the purchase and the remodel in one mortgage, and VA has a version too. Same draw process, existing house. We'll run it beside the construction numbers and see the full menu compared.
A construction loan doesn't hand anyone a pile of cash. The lender releases funds in draws — typically five or more stages tied to milestones like foundation, framing, mechanicals, and final finish. An inspector confirms the work before each release, which protects you as much as the lender: your builder gets paid for work that's done, not work that's promised.
Your builder gets underwritten alongside you. In Michigan that means a licensed residential builder with proper insurance, plus a complete build package — signed contract, plans and specs, itemized budget, draw schedule. It sounds like paperwork because it is, but it's also the reason construction loans rarely fund half-finished houses.
The timeline runs roughly like this: we price your scenario and set the budget, you finalize plans with your builder, the appraiser values the home as completed, we close, the build draws down over the construction months, and the loan finishes as your permanent mortgage — in one closing or two, depending on the program.
Whether you make payments during the build depends on the structure — many one-time-close programs delay your regular payment until the home is done, while others charge interest only on what's been drawn. That's a budgeting conversation we have with real numbers before you commit, not a surprise in month three. You don't do any of this math alone — the Cash to Close tool is where we start.
One-time close: the build loan and the permanent mortgage are a single loan. One approval, one closing, one set of costs — and no re-qualifying after construction, which matters if your income or the market moves mid-build. Availability varies by lender and program.
Two-close: a short-term construction loan first, then a separate permanent mortgage when the house is done. More paperwork, but it can let you re-shop your permanent financing at completion — occasionally that flexibility wins.
You shouldn't have to guess. I price both structures across dozens of wholesale lenders and show you the side-by-side before you commit to either.
A quote is free and there's no obligation — bring me your lot, your plans, or just the idea, and I'll price the build across dozens of lenders. Construction lending has a lot of moving parts, and no two builds look alike. We'll figure it out.
Price My Build → Call / Text (248) 491-8998