Loan Programs · Construction, renovation, and bridge

Financing the home you build

Building a custom home or a teardown rebuild in South Florida takes careful planning. A construction loan pays your builder in stages and then becomes your permanent mortgage. We help you line up the financing, the builder review and the timeline.

Construction Loans explained

A construction loan funds the building of a new home in stages, called draws, as work is completed and inspected. A one-time close (construction-to-permanent) loan combines the construction phase and your long-term mortgage into a single closing. A two-time close uses a short-term construction loan followed by a separate mortgage. Conventional, FHA and VA construction-to-permanent options exist with some lenders, along with jumbo construction for larger projects. The lender reviews the builder, plans, budget and appraised value of the finished home, and all loans are subject to credit approval and program guidelines.

Who it fits

  • Owners building a custom home on a lot they own or are buying
  • Buyers tearing down an older home to rebuild, common in parts of Boca Raton and Fort Lauderdale
  • Buyers working with a licensed custom builder
  • Families who want one closing for construction and the permanent loan

Florida specifics

  • Florida Building Code wind-load and, in coastal areas, flood elevation requirements affect plans, cost and timeline.
  • Your builder must hold a Florida contractor license, and lenders review the builder's experience and financials.
  • Permitting timelines in South Florida cities can be long, so we build buffers into the construction period.
  • Builder's risk insurance during construction, and windstorm and flood coverage for the finished home, are required and should be priced up front.

How it works with Justin

  1. We review your finances and the project, including lot, plans, budget and builder.
  2. The lender approves the builder and orders an appraisal based on the finished home's plans.
  3. At closing, the lot is paid off or credited and the construction budget is set.
  4. Funds are released in draws after inspections as each stage is completed.
  5. When the home is finished, the loan moves into its permanent phase, or you close a separate mortgage.

Documents to gather

  • Signed construction contract and detailed budget
  • Plans and specifications
  • Builder license, insurance and references
  • Lot purchase contract or deed
  • Your income, asset and credit documentation

Things to consider

  • Construction delays and cost overruns are common. You need cash or a contingency in the budget to cover them.
  • Interest is often due on the amount drawn during construction.
  • Not every builder is approved by every lender.
  • If the appraisal of the finished home comes in low, you may need to bring more cash.

Share a few details and Justin will tell you whether Construction fits, with real numbers for your loan.

Construction Loans: common questions

What is a one-time close construction loan?

It is a single loan that covers both building the home and the permanent mortgage afterward. You go through one approval and one closing, which can save time and some closing costs.

Can I use the land I own toward my down payment?

Often, yes. Equity in a lot you already own can usually count toward your down payment or equity requirement. The lender values it as part of the appraisal.

How do construction draws work?

The lender releases money to the builder in stages as work is completed. An inspector verifies each stage before funds go out. This protects both you and the lender.

Does my builder need to be approved?

Yes. Lenders review the builder's Florida license, insurance, experience and sometimes financials. We help you get this started early.

How long does a construction loan last?

The construction phase is usually set to match the expected build time with some buffer. South Florida permitting and weather can extend timelines, so we plan for that.

Related loan programs

  • Renovation Loans — Buy or refinance a South Florida home and finance the repairs in one loan: FHA 203(k), Fannie Mae HomeStyle and Freddie Mac CHOICERenovation.
  • Jumbo Loans — Jumbo mortgages for South Florida homes above the 2026 conforming limit of $832,750 in Palm Beach, Broward and Miami-Dade. Reserves, condos and more.
  • Bridge Loans — Bridge loans for South Florida buyers who want to buy before they sell: use equity in your current home, make a stronger offer and avoid moving twice.
  • Conventional Loans — Conventional home loans for South Florida buyers and owners: 2026 conforming limits for Palm Beach, Broward and Miami-Dade, down payment and PMI basics.

South Florida areas where it fits

See all 21 loan programs, mortgage loans in Florida, or every state where Justin lends.

Sources

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