Construction Loans

Looking to build a house from the ground up? A construction loan is a short-term mortgage option designed to fund the entire construction process, including the costs of land, labor, building materials, and permits.

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Reasons/Highlights

  • Conventional, Jumbo, FHA, VA, USDA, and refinancing available
  • Down payments minimums vary
  • One-time close eligible

Deconstructing the process.

Because a construction loan is more involved than a traditional mortgage, it’s important to work with a lender with expertise. Lucky for you, Cardinal Financial brings decades of experience to every step of the process.

Pro tip: Get pre-approved for construction financing to ensure your budget matches your blueprint (and leaves some cushion for upgrades).

Related home loans.

Ready to break ground? With construction loans, you’ve got options. Here’s a look at what’s possible.

One-Time Close Loan

One-time close loans are an accessible, attractive option for new home construction because they allow you to bundle the purchase of the land and the labor into one mortgage loan instead of taking on two separate mortgages for each.

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Conventional Loan

Want your choice of fixed or adjustable rates and no PMI after building 20% equity? Try a conventional loan, our most popular option for purchase and refi.

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FHA Loan

Want flexible credit requirements, easy refinancing options, and potential for down payment assistance programs? Try an FHA loan.

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  • The process.

    When you can't find your home on the market, you build it. We proudly offer a variety of construction loans and a streamlined process to help you achieve your goals. Here's an overview of how to secure financing from the ground up.

    Have a swipe! ⟶

  • Contractor validation

    First, we review and validate potential contractors’ qualifications. This includes checking their personal and business credit reports, building history, and previous project references.

  • Project approval

    Next, we review all your home construction details to make sure it meets our loan standards. This is also the point in the process where we ensure you’ve allocated enough funds in the proposed budget to complete the project.

  • Underwriting and loan approval

    After submitting your loan application, an underwriter will thoroughly review all the information you’ve provided before moving the loan forward.

  • Closing

    Once your construction loan is approved, it’s time to set up a closing date with us and your agent to sign final documents and pay any closing costs due.

  • Draw funds

    During construction, your contractor will request to draw funds from your loan as needed for materials, labor, and other related costs.

  • Complete construction

    Take it all in—your home is finished! Hope you’ve got those moving boxes ready.

  • Convert to permanent financing

    Now that your home construction is finished, we’ll convert your construction loan to permanent financing for easy monthly payments.

Construction Loans, Deconstructed.

Building a home is a big undertaking. We’re here to help you navigate it smoothly with our best advice, tips, and insight into financing your home with a construction or renovation loan. Don’t forget your hard hat.

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