Build & Finance

Construction Loans

Finance the construction of your dream home or next investment property from the ground up. Flexible draw schedules and competitive rates throughout the build.

What is a Construction Loan?

A construction loan is a short-term loan used to finance the building of a home or real estate project. Unlike a traditional mortgage, funds are disbursed in stages as construction progresses.

Our one-time close construction loans convert to a permanent mortgage upon completion, saving you time and the cost of a second closing.

Key Benefits

  • One-time close construction-to-permanent loans
  • Draw schedule aligned with construction milestones
  • Interest-only during construction phase
  • Custom home builds and major renovations
  • Available for primary residences and investment properties
  • Up to 90% LTC (loan-to-cost) for qualified borrowers

Who This Loan Is For

Borrowers building a custom home or completing a major renovation, plus investors using ground-up or rehab strategies. One-time-close options convert to permanent financing once construction is complete.

Typical Requirements

  • • Licensed contractor and approved plans
  • • Detailed construction budget and appraisal
  • • Down payment of 10–20% (up to 90% LTC)
  • • Interest-only payments during the build phase
  • • Funds released in draws tied to milestones (subject to underwriting)

Key Terms to Know

Loan-to-Cost (LTC)
The loan amount divided by the total project cost (land + construction). LTC governs how much of the build a lender will finance.
Draw Schedule
The timeline of fund releases tied to construction milestones — e.g., foundation, framing, drywall, completion.
Construction-to-Permanent
A single loan that funds the build and then converts to a standard mortgage on completion, avoiding a second closing.
After-Repair Value (ARV)
The estimated property value after construction or renovation is finished. Used to size rehab and fix-and-flip loans.
Takeout Loan
The permanent financing that pays off the construction loan once the project is complete.

See our FAQ and loan resources for more definitions and checklists.

Related Loan Programs & Resources

Bridge Loans

Short-term gap financing for investors.

Hard Money Loans

Asset-based, fast-closing financing.

Commercial Loans

Financing for income-producing property.

How It Works

The ASBCLF application process.

Required Documents

Checklist by loan type.

FAQ

Common financing questions answered.

Ready to Break Ground?

Talk to a construction loan specialist and get your project financed today.