Construction | Renovation

The Right Loan for Building, Remodeling, or Buying

Every home project is different, so your loan should be too. Whether you’re building new, fixing up the home you love, or buying a house that needs some work, we have a loan that fits. Low and no down payment options are available for qualified buyers, and you’ll work with one local lender from the first conversation to move-in day.

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Which Project Is Yours?

Every situation is a little different. Let’s talk about yours.

  • BuildingOn your own lot or with a local builder, with one closing or two.
  • RemodelingBorrow based on what your home will be worth when the work is done.
  • BuyingA new build, an existing home, or a fixer-upper with the repairs rolled into one loan.

Building Doesn’t Have to Mean a Big Down Payment

Many people put off building because they’ve been told a construction loan takes 10 to 20% down. At a lot of banks, that’s true. Here, it isn’t.

Our approach is simple: if you qualify for the final mortgage on the finished home, you can qualify for the construction loan. We don’t add a separate, tougher set of rules just because the house isn’t built yet.

That means the same low and no down payment loan programs people use to buy an existing home can often be used to build one.

One Closing or Two: We Offer Both

Not every lender offers both. We’ll walk through which one fits your plans before you commit.

  • One-time closeOne application, one approval, one closing. The loan pays your builder during construction, then turns into your regular mortgage when the home is done. Fewer fees, less paperwork, and no second approval to worry about at the end.
  • Two-time closeA short-term construction loan first, then a separate mortgage once the home is finished. This can make sense if you’d rather set your final loan terms closer to move-in, or if your finances will change during the build, like selling your current home.

Low and No Down Payment Options

You’ll still need funds for closing costs, which can’t be added to the loan. All loans subject to credit approval and program guidelines. Borrowers must qualify.

  • VANo down payment optionsEligible veterans, service members, and some surviving spouses
  • USDANo down payment optionsHomes in eligible rural areas, within household income limits
  • FHALow down payment optionsBuyers who want a smaller down payment and more flexible credit guidelines
  • ConventionalLow down payment optionsBuyers with strong credit

Renovate Without Waiting to Build Equity

A lot of people assume they need years of equity before they can take on a big project. Not with a renovation loan. We can look at what your home will be worth after the work is done, and use that value to figure out how much you can borrow.

Renovation programs we offer: FHA 203(k) and Fannie Mae HomeStyle.

A simple example (round numbers for illustration only)
  • Your home is worth about $300,000 today
  • You owe $260,000, so there’s little equity to borrow against
  • You plan a new kitchen, a primary suite, and an updated roof
  • The appraiser says the home will be worth about $400,000 when finished
  • The loan can be based on that $400,000 future value, not the $300,000 today

That can open the door to the project now, instead of years from now. It also works when buying a home that needs work: one loan covers the purchase and the repairs.

Example is for illustration only and is not an offer to lend. Actual loan amounts depend on appraisal, credit approval, and program limits.

How a Construction Loan Works, Step by Step

Renovation loans follow the same idea: preapproval, contractor bid, appraisal on the finished value, closing, then the contractor is paid as work is completed.

  • 1Get preapprovedWe look at your income, credit, and savings so you know your budget before you sign with a builder.
  • 2Pick your builder and plansWe review the builder’s contract, plans, and budget, and work directly with them from here.
  • 3Appraisal on the finished homeThe appraiser values the home as it will be when complete, based on the plans.
  • 4CloseWith a one-time close, this is your only closing. Then work can begin.
  • 5Building and drawsAs each stage is finished and inspected, the loan pays the builder. A dedicated construction manager on my team handles the draws. You aren’t writing checks out of pocket to keep the job moving.
  • 6Move inThe construction loan becomes your regular mortgage, and your normal monthly payment begins.

Common Questions

  • Do I really need 20% down for a construction loan?No. If you qualify for the final mortgage, you may qualify for a construction loan with low or no down payment options, depending on the loan program.
  • Will I still need money for closing costs?Yes. Closing costs are separate and can’t be added to the loan, so plan to have funds set aside. I’ll give you a clear estimate early on so there are no surprises.
  • I already own my lot. Does that help?It can. Let’s talk about your lot and how it may help.
  • Can I use any builder?Your builder will need to be reviewed and approved. Some programs, like VA, have their own builder rules. Ask me early and I’ll check before you sign anything.
  • Do I need equity to get a renovation loan?No. We can base the loan on what the home will be worth after the work is done.
  • Can I buy a fixer-upper and renovate it with one loan?Yes. FHA 203(k) and Fannie Mae HomeStyle loans can both cover the purchase and the repairs in one loan.
  • How long does a construction loan last?It depends on your project and the loan you choose. Call me and we’ll map out a timeline that fits your build.

Let’s Talk About Your Plans

Whether you have a lot picked out, a house you want to buy, or a list of things you’d change about your home, let’s start with a short conversation. You’ll leave knowing your options and your next step.

Start My Preapproval

Building with a builder or contractor? Send them this page.

Judi Melton, Mortgage Advisor | NMLS #2178010 | All Western Mortgage, Inc. NMLS #14210

This is not a commitment to lend. All loans are subject to credit approval, property appraisal, and program guidelines. Borrowers must qualify. Loan programs and terms are subject to change without notice, and not all applicants will qualify. Borrowers are responsible for closing costs, which cannot be financed into the loan. VA loans are available to eligible veterans, service members, and surviving spouses. USDA loans are limited to eligible properties and household income limits. FHA, VA, and USDA loans are not issued by or endorsed by the federal government; they are insured or guaranteed by those agencies. Examples are for illustration only. Equal Housing Opportunity.