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CONSTRUCTION LOAN

What is a Construction Loan?

A Construction Loan is a short-term financing solution designed to cover the costs of building a new home or undertaking major renovations. Unlike traditional mortgages, Construction Loans are disbursed in stages as the project progresses, ensuring funds are available for each phase of the build. These loans typically require detailed construction plans and a licensed contractor, making them ideal for buyers and homeowners aiming to create a custom property tailored to their needs.

Who is Eligible?

Construction Loans are tailored to borrowers who demonstrate financial stability and a clear plan for their project. Key eligibility requirements include:

 

  • Strong Credit Score: A credit score of 620 or higher is often required, with better terms available for scores above 700.

  • Down Payment: A down payment of 20% or more is typically needed, though some programs may offer lower requirements.

  • Reliable Income: Borrowers must show proof of steady income to manage the loan repayments.

  • Licensed Contractors: Most lenders require the use of certified contractors and a detailed construction timeline.

  • Detailed Plans: A comprehensive construction plan and budget are essential for approval.

Construction Loans are best suited for those ready to take on the challenges and rewards of building or extensively renovating their dream home.

Features of Construction Loans

Flexible Disbursement

Funds are released in stages, corresponding to completed construction milestones, ensuring financial control throughout the project.

Short-Term Financing

Construction Loans usually last 6-12 months and can be converted to a permanent mortgage once the project is completed.

Interest-Only Payments

During the construction phase, borrowers typically pay interest only on the funds disbursed, reducing initial costs.

Customizable Homes

These loans provide the freedom to design and build a home that fits your specific needs and preferences.

Variety of Uses

Construction Loans can finance everything from new builds to significant renovations or additions.

Possibility starts here

Get approved for your mortgage.

It may be hard to believe, but in just a few clicks, a new home or mortgage savings could be yours.

Apply Now

Client testimonials

What They Say About Us

Sarah M.
"Working with USA Mortgages was a game-changer. As a first-time homebuyer, I was nervous about the process, but they were so patient, explaining every detail and helping me find a loan that fit my budget. They truly made me feel like family. I’d recommend them to anyone!"
Kevin L.
"I was looking to refinance, but I’d been putting it off because of all the paperwork. USA Mortgages took care of everything and got me an incredible rate! The whole experience was straightforward, quick, and stress-free. I’m saving over $200 a month on my mortgage now!"
Luis G.
"I’d heard horror stories about mortgage brokers, but USA Mortgages changed my mind. They found me a great deal on my mortgage, and the whole team was responsive, friendly, and genuinely invested in helping me close on my dream home. I’m beyond grateful!"
Amy T.
"USA Mortgages turned what I thought would be a long, confusing process into a breeze. They answered all my questions, gave me solid advice, and were with me every step of the way. Thanks to them, I’m officially a homeowner! Can’t thank them enough."
Marcus J.
"As a veteran, finding a loan that respected my service was important to me. USA Mortgages guided me through every VA loan benefit, securing terms that worked for me and my family. This team knows their stuff and respects their clients – highly recommend!"
Jasmine H.
"I had some credit challenges, but USA Mortgages didn’t treat me any differently. They found options that other lenders didn’t and walked me through ways to improve my credit. Thanks to them, I’m a homeowner – something I didn’t think was possible!"