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New Construction Loans: From Blueprint to Reality
For many, the idea of constructing a home from the ground up represents the ultimate dream. Unlike purchasing an existing home, building a new one allows for personal customization at every turn, offering the opportunity to bring your unique vision to life. New Construction Loans are the financial instruments that make this dream possible. These loans are tailored to fund the unique needs and stages of the home-building process.
Primarily, they’re designed to fund in stages, matching the progress of the construction. Rather than receiving the entire loan amount upfront, borrowers receive disbursements or “draws” as specific construction milestones are met. This structure benefits both the lender, who takes on less risk, and the borrower, who only pays interest on the amounts drawn. Once the home is completed, these loans often convert into standard mortgages, allowing for a seamless transition from construction to homeownership.
They are usually short-term, often around 12 months, but the term can vary based on the construction timeline.
New Construction Loans often require a larger down payment, sometimes 20-25%, due to the higher risk associated with home construction.
Yes, many construction loans are designed to convert into a conventional mortgage once the home is completed.
Absolutely. Lenders will review the reputation and reliability of the builder to ensure the project’s successful completion.
Starting your journey of constructing your own home is exciting, but it’s essential to have the right financial partner to support you. With New Construction Loans, you gain the flexibility and structure needed to see your dream home come to life. Ready to lay the foundation for your future? Connect with your First Veterans Mortgage Loan Officer today to start building your tomorrow.
*All product information represented on this page is subject product guidelines and can change at anytime. It is for educational and informational purposes only and not a commitment to lend. Please contact your Nationwide Mortgage Bankers Loan Officer today get the latest product guidelines and guidance on what loan programs fit your unique financial picture and goals.
We make financing your home simple and seamless with our user-friendly online platform, allowing you to quickly apply and get pre-qualified for a home loan. Our mortgage specialists offer prompt feedback and support, ensuring a smooth and efficient home financing journey.
Nationwide Mortgage Bankers, Inc. (NMB), going by NMB Home Loans, Inc. in the states of AL, AZ, GA, IL, IA, KS, LA, MN, MT, ND, OK, PA, SC, SD, TX, WV and as NMB Home Loans in KY and MA| NMLS# 819382 | (www.nmlsconsumeraccess.org) 3 Huntington Quadrangle, Suite 403N, Melville, NY 11747 | Branch NMLS 1822931 | (833) 700-8884 | www.nmbnow.com. NMB is in no way affiliated with Nationwide Mutual Insurance Company. “NMBNOW” is a registered DBA of Nationwide Mortgage Bankers, Inc. All loans are subject to credit and appraisal approval. Not all applicants may qualify. Some products and services may not be available in all states. NMB is not acting on behalf of or at the direction of FHA/HUD/USDA/VA or the federal government. By refinancing your existing home loan, your total finance charges may be higher over the life of the loan. This is an advertisement. Licensed under the California Finance Lenders Law by The Department of Financial Protection and Innovation #60DBO73939 | Georgia Residential Mortgage Licensee | MA Mortgage Lender License #ML819382 | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker – NY Department of Financial Services. | Rhode Island Licensed Lender | Licensed by the Virginia State Corporation Commission. Additional state licensing information can be found at https://nmbnow.com/disclosures-and-licensing/
By refinancing your existing home loan, your total finance charges may be higher over the life of the loan.
