How long does a construction loan last?

Most construction loans have a term of 6 to 12 months, with extensions available if needed. Once construction is complete, a one-time close loan automatically converts to a permanent mortgage. A two-time close requires a new loan application at completion.

Can I act as my own general contractor?

Owner-builder loans are available through some programs, but they are less common and typically require the borrower to demonstrate construction experience. Most lenders require a licensed general contractor for standard construction loans.

What happens if construction goes over budget?

Construction loans are based on a fixed contract price. If costs exceed the original budget, you may need to bring additional funds to closing or negotiate a change order with your builder. It's important to build a contingency reserve (typically 10-15%) into your budget from the start.

Do I make payments during construction?

During the construction phase, you typically make interest-only payments on the amount drawn to date — not the full loan amount. This keeps payments manageable while your home is being built. Once construction is complete and the loan converts to permanent, regular principal and interest payments begin.

Can I use a construction loan to build on land I already own?

Yes. If you own land free and clear, its value can often be used as part or all of your down payment for the construction loan. If you have an existing mortgage on the land, the construction loan will typically pay it off and roll it into the new loan.

What is the difference between a construction loan and a renovation loan?

A construction loan finances a new build from the ground up. A renovation loan (such as an FHA 203k or conventional renovation loan) finances the purchase and rehabilitation of an existing property. If you're doing a major renovation or addition, ask about renovation loan options as well.

Construction Loans | Build Your Dream Home

What is Construction?

Construction loans provide the funding you need during the building process and the permanent mortgage — often wrapped into one loan. Whether you're building from the ground up, doing a major renovation, or buying a fixer-upper, Q Home Loans has loan officers specifically certified in construction financing who guide you through every step. We offer both one-time close and two-time close options depending on your build timeline and budget. Contact our construction team to discuss your project.

Why Choose Construction Loans?

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One-Time Close Option

Wrap construction financing and your permanent mortgage into a single loan with one closing — saving time and closing costs.

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Two-Time Close Available

Prefer flexibility? A two-time close separates construction and permanent financing, letting you shop rates when the build is done.

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Interest-Only During Build

Pay only interest on the amount drawn during construction, keeping your monthly payments lower until the home is complete.

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Certified Construction Team

Our loan officers are specifically certified in construction financing. They understand draw schedules, builder requirements, and budget planning.

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New Build or Renovation

Whether you're building new on your own lot or renovating an existing home, our construction programs cover both scenarios.

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Seamless Permanent Financing

Transition from construction to your permanent mortgage without requalifying. One approval process from start to finish.

Frequently Asked Questions

Get answers to common questions about construction loans.