Construction Loan Programs
Work with our team of construction lending experts to build the home of your dreams.
Connect With A Loan OfficerBuild the home you’ve always pictured
A construction loan is a temporary line of credit that covers the cost of building a home or completing a major renovation project. Unlike a traditional mortgage, the funds are released in stages as the work progresses. Once the home is complete, the loan either converts into your permanent mortgage or you close on a new one.
At First Heritage Mortgage, we offer two types of construction loans — a one-time close and a two-time close — so you can choose the path that works best for you.
Connect With A Loan OfficerOne-Time Close Construction Loans
Secure both the construction and permanent financing for your home in one easy closing process.
- Lock in your permanent loan rate at origination — no interest rate risk during the construction process.
- Make interest-only payments during the construction phase.
- Avoid paying upfront origination fees.
- Determine loan amount based on the after-completed appraised value of the home.
- Available on owner-occupied, second, or vacation properties.
Additional Features & Benefits:
- Save time and money: A one-time close means just one qualifying process and one set of closing costs for both loans
- In-house draw servicing means you’ll work with the same group of experts from application to closing.
- Flexible loan terms with a variety of options available for the permanent loan.
- Get the funds you need with loan amounts up to $1.5 million for qualified borrowers.
Two-Time Close Construction Loans
Finance the construction of your dream home with two simple loans: An initial, short-term construction loan followed by a separate, long-term mortgage on the completed project.
- Enjoy greater flexibility to modify plans or increase loan amounts during the project.
- Rates are generally lower on the long-term mortgage.
- Extended Rate Lock options offer added protection against market changes.
- Make stable, interest-only payments during the construction phase.
Additional Features & Benefits
- Opportunity to switch to a lower rate once construction is complete.
- In-house draw servicing means you’ll work with the same group of experts from application to closing.
- Flexible loan terms with a variety of options available for the second loan.
- Get the funds you need with loan amounts up to $3 million for qualified borrowers.
Frequently Asked Questions About Construction Loans
Most construction loans have a term of up to 12 months for the building phase. After that, the loan either converts to your permanent mortgage (one-time close) or you close on a new mortgage (two-time close).
You can work with a licensed contractor or builder of your choice. Your loan officer can walk you through what documentation is required.
During the building phase, you only pay interest on the funds that have been drawn, not the full loan amount. This keeps your monthly costs lower while your home is being built.
Not necessarily. Speak with a loan officer about how land and construction costs can be factored into your loan.
The Right Loan for Where You're Headed
Renovation Loans
Finance your dream updates, from minor touch-ups to major transformations, all in one loan.
FHA 203(k) Renovation Loans
A government-backed renovation loan with a low down payment and flexible credit requirements.
Bridge Loans
Buy your next home before your current one sells — without the stress of juggling two mortgages.
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Your dream home starts here
Building a home is one of the most exciting things you’ll ever do. Our team is here to make the financing just as rewarding. Let’s get started on your construction loan today.
Connect With A Loan Officer