Construction loans may provide financing for eligible residential building projects, with funds generally disbursed as construction progresses. Loan structure, draw requirements, builder requirements, payment terms, and permanent financing options vary by lender and project.
A construction loan is a short-term mortgage designed to finance the building of a new home. Unlike traditional mortgages, funds are not released upfront. Instead, they are disbursed in phases as construction milestones are completed and inspected.
Construction loans are typically used when:
Construction loan rates, down-payment requirements, payment structures, insurance requirements, and other loan terms vary by borrower, project, lender, and program. Builder, appraisal, inspection, documentation, and underwriting requirements may also apply.
The example below is for educational purposes only. Actual draw schedules, inspection requirements, disbursement timing, and construction milestones vary by lender and project.
Foundation & Initial Framing
Major Systems Installation
Interior Construction
Exterior Finishing
Final Inspection & Completion
Construction loans often involve careful planning, documentation review, and coordination with builders, inspectors, and lenders. Loans by Kelly helps borrowers explore construction financing options for custom home builds and residential construction projects, with guidance through the lending process. Program availability and requirements vary by lender and project. Support is available in English, Portuguese, and Spanish.
Whether you’re financing a custom build or transitioning from construction to permanent financing, Loans by Kelly helps you navigate the process with confidence.
3 Simple Steps to Start Your Mortgage Review
We begin with a conversation to understand your home financing goals and general mortgage needs.
We review mortgage options based on your goals, property type, occupancy, documentation profile, and applicable lender guidelines.
Submit a secure application to begin the mortgage review process. Any preapproval requires applicable documentation and underwriting review.
