Plan the Financing Before You Start the Build
Construction financing involves more than approving the borrower. The land, plans, budget, builder, appraisal, draw schedule, and permanent financing must work together. John Collins helps borrowers, Realtors, and builders review those pieces early—before an avoidable financing problem delays the project.
As a mortgage broker with access to more than 85 wholesale lenders, John can shop available construction programs and help identify a financing structure that fits the borrower and the project.
For Borrowers
Building a home is a sequence of decisions that have to fit together financially. John helps you review each piece so the structure is clear before construction begins.
- Land financing — Financing the land you already own or are purchasing as part of the build.
- Construction costs — Covering the cost of labor, materials, and contractor work through the build.
- Construction-to-permanent financing — Options that transition the construction loan into permanent financing once the home is complete.
- One-time-close and two-time-close structures — Understanding the difference so you can choose the structure that fits your project.
- Builder approval — Confirming the builder meets the lender's approval requirements before you commit.
- Appraisals based on completed value — An appraisal that reflects the home's future completed value, not just the land or current stage.
- Draw schedules and inspections — How funds are released at each stage of construction and the inspections that release each draw.
- Permanent financing — The end loan that takes over once the home is finished and the construction period ends.
For Realtors
Construction transactions have more moving parts than a typical resale. John helps you protect the transaction from financing surprises.
- Review financing before the buyer commits to purchasing land
- Help evaluate whether the proposed project fits available construction financing
- Communicate with the parties involved—borrower, builder, and lender—so expectations stay aligned
- Provide a second review when a transaction encounters financing problems
For Builders
A borrower whose financing is reviewed early keeps the build on schedule. John works with builders to keep the financing side moving.
- Early borrower financing review before construction begins
- Required builder documentation, gathered before the lender's approval step
- Project-budget review so the financing aligns with the planned scope
- Draw-process expectations, including what releases each stage of funding
- Communication throughout the financing process
Construction Programs That May Be Available
Construction financing is not one-size-fits-all. Depending on the project, John can review options such as:
Conventional Construction
Standard construction-to-permanent financing for qualified borrowers and projects.
VA Construction
Construction financing using the VA benefit for eligible veterans and service members, where available.
FHA Construction
FHA-backed construction options for eligible borrowers, where available.
USDA Construction
Construction financing for eligible rural properties, where available.
Renovation
Financing that combines a purchase or refinance with renovation or rehab costs.
Non-QM Construction
Non-traditional construction programs for borrowers or projects that fall outside standard guidelines.
Program availability and requirements depend on the property, project, borrower, lender, and state. John reviews your specific situation to identify which programs may fit.
Before You Purchase Land or Finalize Plans
The earlier John reviews the project, the more avoidable problems can be caught. For an initial review, it helps to have:
- Property location
- Land ownership or purchase terms
- Preliminary plans
- Estimated construction budget
- Builder information
- Expected completion timeline
- Borrower financing information
Frequently Asked Questions
What is a construction-to-permanent loan?
It is a loan that finances the build and then transitions into permanent financing once the home is complete, so you do not need two separate loans.
What is the difference between one-time-close and two-time-close?
A one-time-close combines construction and permanent financing into a single loan. A two-time-close uses separate loans—one for construction and one for the permanent mortgage.
Can I finance the land and the build together?
In many cases, yes. You can finance land you already own or are purchasing as part of the build, along with the construction costs.
How are funds released during construction?
Funds are released in draws at each stage of construction, with inspections that release each draw as work is completed.
Does the builder need to be approved by the lender?
Yes. The builder typically must meet the lender's approval requirements before you commit. John can help confirm the builder's approval status early.
Can John help if my construction loan was declined elsewhere?
A decline from one lender does not necessarily mean you cannot qualify. Because John shops programs across more than 85 wholesale lenders, he can review your situation and identify options that may fit.
Planning a build?
Review the financing before you break ground. Share your project details and John can provide an initial scenario review.