Construction & Renovation Mortgages
Build your dream home with financing designed for construction projects
Tailored for Your Project
Financing that grows with your build
Construction mortgages work differently than traditional home loans. Your funds are released in stages as your project progresses, which means you only pay interest on the money that's been drawn. We work with you throughout each phase of construction, from foundation to final walkthrough. Our process is straightforward and transparent, so you can focus on bringing your vision to life rather than managing complex financing.
Loan products for your construction needs
We offer several financing structures to match your project timeline and budget. Each product is designed with flexibility in mind, recognizing that construction projects rarely follow a perfectly straight path.
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Construction-to-Permanent Loan
This loan covers both your construction phase and converts to a permanent mortgage when your home is complete. You benefit from a single application, one closing, and simplified management as your project transitions from active building to completion.
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Construction-Only Loan
If you prefer to secure permanent financing separately, this option funds your construction phase exclusively. The loan term typically covers your build schedule with interest-only payments during construction.
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Renovation Loan
Designed for homeowners upgrading existing properties, this product funds major renovations with staged draws tied to project milestones and inspections.
How construction financing works
The process moves at the pace of your project. Here's what to expect from initial conversation through project completion.
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Pre-construction approval
We review your plans, budget, and timeline to determine your financing capacity. You'll have clear numbers before breaking ground, letting you move forward with confidence.
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Draws during construction
As your project progresses, funds are released in stages based on completed work and inspections. This keeps costs manageable and ensures accountability throughout your build.
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Project completion and conversion
Once construction is finished, your loan transitions to permanent status if you chose a construction-to-permanent product. You'll move to standard mortgage terms with your final rate and payment structure.
Questions about construction mortgages
Construction financing has unique features. Here are answers to the questions we hear most often from builders and homeowners planning their projects.
What happens if my construction costs exceed my budget?
Construction projects sometimes require adjustments. If you need additional funds, we can discuss options for addressing the shortfall. It's important to communicate early so we can work together on solutions rather than having construction halt unexpectedly.
Do I pay interest during the construction phase?
With most construction loans, you pay interest only on the funds that have been drawn. As your project progresses and more money is released, your monthly interest payment increases. This is different from a traditional mortgage where you're paying interest on the full loan amount from day one.
How often are draws released?
Draw schedules depend on your construction timeline and lender requirements. Typically, draws coincide with major project milestones like foundation completion, framing completion, and final inspection. Your contractor, builder, and our team will coordinate the timing.