Construction loans — build it right from the start.
One-time close construction-to-permanent financing in Colorado and Florida. Lock your rate upfront, draw as you build, and move in with a permanent mortgage already in place.
Program guidelines at a glance
Rough guidelines only — actual qualification depends on the full loan file (credit depth, reserves, property type, occupancy, and investor overlays). We'll confirm your exact numbers in writing.
| Guideline | Conforming One-Time Close Construction-to-Perm Single closing, single set of fees | VA One-Time Close Construction-to-Perm 0% down for eligible veterans and service members |
|---|---|---|
| Min FICO | 620 | 620 |
| Min down payment | 5% (conforming) | 0% |
| Max DTI | 50% | 50%+ |
| Reserves | 6 months PITI + contingency reserve | 6 months PITI + contingency reserve |
| Max loan amount | Up to the local high-balance conforming limit (varies by location) | No VA loan limit for full entitlement |
| Occupancy | Primary, second home, or investment property | Primary residence only |
| Build timeline | Typically 12 months, extendable | Typically 12 months, extendable |
| Interest during build | Interest-only on funds drawn, then converts to permanent loan | Interest-only on funds drawn, then converts to permanent VA loan |
| Doc type | Full doc · approved builder + plans + cost breakdown required | Full doc · COE · approved VA builder + plans required |
Conforming One-Time Close Construction-to-Perm
Single closing, single set of fees
- Min FICO
- 620
- Min down payment
- 5% (conforming)
- Max DTI
- 50%
- Reserves
- 6 months PITI + contingency reserve
- Max loan amount
- Up to the local high-balance conforming limit (varies by location)
- Occupancy
- Primary, second home, or investment property
- Build timeline
- Typically 12 months, extendable
- Interest during build
- Interest-only on funds drawn, then converts to permanent loan
- Doc type
- Full doc · approved builder + plans + cost breakdown required
VA One-Time Close Construction-to-Perm
0% down for eligible veterans and service members
- Min FICO
- 620
- Min down payment
- 0%
- Max DTI
- 50%+
- Reserves
- 6 months PITI + contingency reserve
- Max loan amount
- No VA loan limit for full entitlement
- Occupancy
- Primary residence only
- Build timeline
- Typically 12 months, extendable
- Interest during build
- Interest-only on funds drawn, then converts to permanent VA loan
- Doc type
- Full doc · COE · approved VA builder + plans required
One-time close
Lock your permanent rate at the start. One closing, one set of fees, no refinancing at the end.
Land purchase included
Buy the land and build the home with one loan. Existing land equity counts toward your down payment.
Local builder expertise
We understand Colorado mountain builds and Florida coastal construction requirements and timelines.
How construction loans work
Construction financing works differently from a standard purchase. Instead of receiving the full loan amount at closing, your builder receives funds in scheduled "draws" as construction progresses — typically after foundation, framing, drywall, and final completion.
One-time close (construction-to-perm): You close once at the beginning, locking in your permanent mortgage rate. During construction, you pay interest-only on the drawn amount. When the home is complete, the loan automatically converts to a standard fixed-rate or ARM mortgage.
Two-time close: A standalone construction loan that must be paid off or refinanced into a permanent mortgage when construction ends. This gives more flexibility but exposes you to interest rate risk.
Builder requirements: Lenders vet your builder's license, insurance, experience, and financial stability. We work with approved builders and can help evaluate new builder applications.
What you'll need to qualify
- Detailed construction plans and specs from a licensed builder
- Signed builder contract with fixed-price or cost-plus terms
- Builder's risk insurance policy
- 5% down for conforming or 0% down for eligible VA borrowers (land equity may count)
- Good credit (620+ FICO) and documented income
- Cash reserves for cost overruns and contingencies
Construction loans by city
These Colorado and Florida markets are popular for custom builds, mountain homes, and new construction.
Construction loans in Telluride
Median: $2.4M
View guideConstruction loans in Montrose
Median: $465K
View guideConstruction loans in Ridgway
Median: $785K
View guideConstruction loans in Grand Junction
Median: $415K
View guideConstruction loans in Durango
Median: $725K
View guideConstruction loans in Aspen
Median: $3.2M
View guideConstruction loans in Vail
Median: $2.1M
View guideConstruction loans in Steamboat Springs
Median: $1.15M
View guideConstruction loans in Crested Butte
Median: $1.45M
View guideConstruction loans in Salida
Median: $595K
View guideConstruction loans in Pagosa Springs
Median: $575K
View guideConstruction loans in Buena Vista
Median: $555K
View guideConstruction loans in Naples
Median: $795K
View guideConstruction loans in Tampa
Median: $415K
View guideConstruction loans in Cape Coral
Median: $385K
View guideConstruction loans in Fort Myers
Median: $365K
View guideConstruction loan FAQs
What is a construction loan?
A construction loan is short-term financing used to build a new home or complete a major renovation. Funds are disbursed in draws as construction milestones are completed, and the loan typically converts to a permanent mortgage when the project is finished.
How much down payment is required?
Our one-time close construction-to-permanent loans start at 5% down for conforming products and 0% down for eligible VA borrowers. Land equity can often count toward the down payment.
What is a one-time close construction loan?
A one-time close (or construction-to-perm) loan combines the construction financing and permanent mortgage into a single closing. You lock your rate upfront, pay closing costs once, and avoid the risk of rate changes during construction.
Can I use a construction loan to buy land?
Yes — our construction loans can include the land purchase in the total loan amount. If you already own the land, its appraised value can usually count toward your equity/down payment.
What are the interest rates on construction loans?
Construction loan rates are typically higher than permanent mortgage rates during the build phase. With a one-time close, the permanent rate is locked at closing. Standalone construction loans may require you to refinance at the end, subject to market rates.
Do you offer owner-builder construction loans?
Owner-builder programs are limited and require significant experience, licensed contractor status in many cases, and larger down payments. Most buyers work with a licensed general contractor, which is easier to finance.
How long does construction financing take?
Construction loans take longer to close than standard purchases — typically 45–60 days — due to the need for builder vetting, architectural plans, builder's risk insurance, and a detailed construction budget.
Can I use a VA loan for new construction in Colorado or Florida?
Yes — VA One-Time Close (OTC) construction loans are available and allow eligible veterans to build with 0% down. The builder must be VA-approved, and the property must meet VA Minimum Property Requirements. We work with VA-approved builders in Western Colorado and Florida.
Do you offer FHA or jumbo construction loans?
We currently offer conforming and VA construction-to-permanent loans only. We do not offer FHA or jumbo construction products at this time.
How does land equity work toward my construction loan down payment?
If you already own the land free and clear (or with significant equity), the appraised land value counts toward your down payment and equity position. For example: land appraised at $100,000 + construction cost of $400,000 = $500,000 total project. With 20% required, $100K land equity satisfies the requirement, potentially reducing your cash contribution to $0.
What is the draw process for a construction loan?
During construction, your builder submits draw requests as each phase is completed (foundation, framing, mechanical/electrical, drywall, completion). The lender sends an inspector to verify completion before releasing each draw. You pay interest-only on the amount drawn — not the full loan amount — which keeps payments manageable during the build. At completion, the loan converts to a permanent fixed-rate or ARM mortgage.
Can I build a home in a rural Colorado area with a construction loan?
Yes — we finance new construction in rural Western Slope Colorado, including custom builds in Montezuma, Montrose, Delta, Ouray, and La Plata counties. Rural builds often have longer timelines due to permitting, utilities, and contractor availability. Wells, septic systems, and access roads must be completed and inspected before the loan converts to permanent.
Start your construction loan
From land purchase to move-in day, we'll guide you through every draw and milestone. Colorado and Florida custom build expertise.
Related loan programs
Not sure this is the right fit? Explore other programs we originate.