Construction Loans

Build Your Dream Home with Confidence

Building a home gives you the opportunity to create a living space that reflects your lifestyle, preferences, and long-term goals. Construction loans are designed to provide the financing needed to build a new home from the ground up, making it easier to turn your vision into reality. Whether you’re planning your forever home, a vacation property, or a custom residence, Jerry Ownby offers personalized construction loan solutions tailored to your unique project. From securing financing to the final stages of construction, we are committed to making the process straightforward, efficient, and stress-free.

What Is a Construction Loan?

A construction loan is financing designed to fund the building of a new home. Instead of delivering the full loan amount at closing, funds are released in stages, known as draws, as your builder completes specific phases of work. During construction, you typically pay interest only on the amount that’s been disbursed. When the home is finished, the financing converts to, or is replaced by, a permanent mortgage.

How the Draw Process Works

Draws keep your project organized and help make sure money goes toward completed work. A simplified example of how a project might be funded in stages:

  1. Site preparation and foundation: Land is prepared and the foundation is poured
  2. Framing: The structure of the home takes shape
  3. Rough-in work: Plumbing, electrical, and HVAC systems are installed
  4. Exterior and interior finishes: Roofing, siding, drywall, flooring, and cabinetry
  5. Final completion: Fixtures, landscaping, and final inspections

At each stage, an inspection typically confirms the work before the next draw is released. Jerry explains the draw schedule upfront so you always know what to expect.

Financing Options for Building

Construction-to-Permanent Loans

A single loan covers both the building phase and your long-term mortgage. With one closing, you can often streamline paperwork and lock in your permanent financing structure early.

Construction-Only Loans

This loan covers the building period only. Once the home is complete, you pay it off or refinance into a permanent mortgage, which usually means a second closing and a second round of costs.

Jerry will compare these structures with you and help you choose the approach that best fits your budget, timeline, and long-term plans.

Do You Already Own the Land?

Your land situation affects your financing in several ways.

If You Own the Lot

Equity in the land can sometimes be applied toward your down payment, which may reduce the cash you need to contribute.

If You Still Need to Buy Land

Financing the lot and the construction together may be possible in some programs, so it’s worth discussing early in your planning.

What Lenders Typically Review

Because construction involves more moving parts than a standard purchase, lenders often look at:

  • Your credit and income: Standard borrower qualifications still matter
  • Down payment or land equity: Your contribution to the project
  • Detailed plans and specifications: What exactly will be built
  • A realistic construction budget: Including a contingency for unexpected costs
  • Builder qualifications: Many lenders require a licensed, insured, and experienced builder
  • Appraisal: Value is generally based on the completed home
  • Construction timeline: A reasonable schedule for finishing the project

What to Prepare Before You Apply

Getting organized early can make the process smoother. Consider gathering:

  • Your building plans and specifications
  • A signed contract or bid from your builder
  • A detailed cost breakdown
  • Information about the land, including ownership or purchase details
  • Your standard financial documents, such as income and asset statements

Tips for a Smoother Build

  • Choose your builder carefully. Experience, references, and communication matter.
  • Build in a contingency. Many projects face changes, so a buffer helps protect your budget.
  • Plan for costs beyond construction. Permits, utility connections, landscaping, and furnishing add up.
  • Stay involved. Regular check-ins with your builder help catch issues early.
  • Understand how your payment may change. Payments can increase as more funds are drawn and when the loan converts to permanent financing.

Construction Loans vs. Other Paths

If you’d rather purchase a finished home, conventional loans, FHA loans, and VA loans may be simpler options. If you’re building a high-value property, a jumbo loan may play a role in your permanent financing. Investors building rental properties can also explore DSCR loans for long-term financing, and existing homeowners planning renovations may consider a HELOC. Jerry will help you compare your choices.

Serving Borrowers Across 14 States

Jerry Ownby proudly serves borrowers throughout Arizona, Alaska, California, Colorado, Florida, Georgia, Maryland, Montana, Ohio, Texas, Utah, Washington, South Carolina, and West Virginia, providing personalized construction financing guidance wherever you plan to build.

Plan Your Budget With Confidence

Use the loan calculator to explore payment scenarios and check today’s rates as you plan your project.

A Trusted Partner From Blueprint to Move-In

Jerry works closely with borrowers, builders, and construction professionals to keep the financing side of your project clear and on track. You’ll receive timely updates, honest advice, and personalized support from your first consultation through final loan conversion.

Ready to Start Building?

Call Jerry Ownby at 480-980-0900 or visit 459 N Gilbert Rd, Suite B100, Gilbert, AZ 85234 to talk through your project and explore your construction loan options.