Loan programs
Construction loans
Building a home is a different kind of financing: the money goes out in stages as the work gets done, and the loan has to carry you from lot to move-in. LoanZilla arranges construction financing for homes and 1–4 unit properties, and several of our principals and loan officers have built, developed and financed construction projects themselves.
Reviewed by Clint Aguon, CEO & Loan Officer · NMLS #1893008 · Updated September 2026
Two ways to finance a build
Construction-to-permanent (one-time close). One loan covers construction and then converts to your long-term mortgage when the home is finished. You close once, which keeps costs and paperwork down.
Construction-only, then a separate mortgage (two-time close). A short-term loan pays for the build, and you replace it with a permanent mortgage at the end. It can offer more flexibility on the final loan, with a second closing.
How construction financing works
- Plan and budgetLenders review your plans, specifications, builder contract and a detailed cost breakdown.
- Appraisal “as completed”The home is appraised on what it will be worth when finished, which sets how much can be borrowed.
- Draws as work is doneFunds are released in stages after inspections confirm each phase is complete.
- CompletionA final inspection, then the loan converts or is refinanced into your permanent mortgage.
What we can finance
- A custom home on land you own or are buying
- Major renovations and additions
- Accessory dwelling units (ADUs) and backyard cottages
- Construction financing for investors through business-purpose programs
Why experience matters here
Construction loans have more moving parts than any other mortgage: budgets, builders, draw schedules, inspections and timelines. Our principals have backgrounds in real estate development, and loan officers Jonah Wilhelm and JJ Benetti bring land development and new-construction experience. We know what lenders will ask for, and we help you have it ready before it slows your project down.
Construction loan FAQs
Can I use the land I already own?
Often, yes. Equity in a lot you own can count toward what you need for the project. Bring us the details and we’ll show you how lenders would treat it.
Do I need a builder before I apply?
For most construction loans, yes. Lenders review the builder, the plans, the budget and the construction contract before closing. Owner-builder financing is limited and depends on the lender and your experience.
Can a construction loan cover a major remodel or an ADU?
Large renovations and additions can be financed with construction or renovation programs, and a HELOC can work for smaller projects. We’ll compare the options for your project.