Before you break ground, let’s make sure the financing is actually ready.

It depends on the program. FHA one-time close construction loans can start around 3.5% down for eligible borrowers, and eligible VA borrowers may qualify for 0% down. Conventional and DSCR investor construction loans typically require more — often in the 10% to 25%+ range — depending on the lender, your credit profile, and the property.

A one-time close (construction-to-permanent) loan combines the construction financing and the permanent mortgage into a single closing, so your rate is typically locked before you break ground and there’s no second closing. A two-time close uses a short-term construction loan first, then a separate refinance into permanent financing once the home is complete.

Yes. Ground-up construction financing for investors typically uses a short-term, interest-only loan — often 12 to 24 months — based on the project’s cost and projected value, then exits into a long-term DSCR loan once the property is complete and rented, qualifying on the property’s income rather than your personal tax returns.

Most construction loan programs require a licensed, insured general contractor, and the lender reviews the builder’s license, insurance, and track record as part of approval. Owner-builder scenarios exist with some non-QM and investor programs, but they’re far more limited.

Once full documentation, plans, and builder approval are in place, many construction loans close in roughly 30 to 45 days — though timing depends on the loan program, appraisal turnaround, and how quickly the builder’s paperwork comes together.

Yes, in most one-time close and DSCR ground-up programs, land acquisition and construction costs can be combined into a single loan amount. If you already own the land free and clear, that equity can often be counted toward your required down payment.