New-Construction Financing
New-construction financing may involve a construction loan that converts to permanent financing, or a purchase loan through a builder's preferred process. Timing and rate-lock terms matter.
General potential benefits
- Supports a home built to your specifications
- Some builders offer incentives
General considerations
- Longer timelines can affect rate locks
- Draw schedules and inspections add complexity
Common eligibility factors
- Credit and income review
- Builder and plan review
- Appraisal based on plans
Possible costs
- Standard closing costs
- Possible extended rate-lock fees
- Inspection fees
Questions to ask a mortgage professional
- Which loan programs am I likely to be eligible for, and why?
- What documentation will you need from me, and when?
- How do the estimated closing costs compare between programs?
- How would a change in my down payment affect my monthly payment?
- What would change if my credit profile improves before closing?
Readiness checklist
- Ask about extended rate-lock options
- Confirm what happens if the build is delayed
Frequently asked questions
Estimate a payment for this pathway
Use the calculators to model a payment with your own rate, tax, and insurance assumptions. Nothing you enter is submitted anywhere.
This guide is educational. Eligibility factors described here are common considerations, not universal or guaranteed requirements. Nothing here is a loan offer, an approval, or a rate commitment. A licensed mortgage professional must verify actual terms.