Do I need a licensed builder?

Yes - owner-builder programs exist but are rare. Most lenders require a licensed, bonded GC.

How long can construction take?

6-18 months typical; extensions available for complex builds.

Down payment for construction?

20% on conventional, 3.5% on FHA construction-to-perm, 0% on VA new construction.

What happens if the build costs go over?

You cover overages out of pocket. We build in a 5-10% contingency to absorb minor surprises.

Loan option

Construction Home Loan

Build your dream home with a single-close construction loan that converts automatically to a permanent mortgage when construction completes.

Get a quote Pre-qualify

What Construction Home Loan actually is.

Building your own home is a thrill - and a process. The right construction loan smooths every step from breaking ground to handing over the keys.

Datum Home Lending specializes in one-time-close construction-to-perm loans: you close once, pay one set of fees, and the loan automatically transitions to your permanent mortgage when the home is done.

During construction, you pay interest only on funds drawn. After completion, you settle into a standard 30-year fixed (or whatever permanent product you chose).

Illustrative sample figures for a template demonstration. Not a rate quote, not an offer to lend, and not live market data.

Who this fits

Custom home builders
Buyers of newly built spec homes
Owners planning major additions
Builders financing model homes

Check whether you qualify

What this program buys you.

One Closing: Construction and permanent loan combine into one closing - one set of fees.
Interest-Only During Build: Pay only interest on funds drawn during construction.
Locked Rate: Rate is locked at construction closing - protect against rate spikes.
Conventional, FHA, VA: Construction-to-perm available across most loan types.

The process

Four moves from first call to keys.

Each step has one job and one owner. You always know which of the four the file is sitting in.

01Plans & BudgetBuilder provides plans, specs, and a detailed budget.
02ApplyWe underwrite the construction loan and permanent loan together.
03Draws During BuildFunds release in stages as the builder completes work.
04ConversionLoan converts automatically to your permanent mortgage at completion.

Questions this program raises.

If yours is not here, ask it. You will get an answer in writing from the officer who would work the file.

Other programs

Get this priced against your own file.

Tell us the scenario and we will come back with real figures for Construction Home Loan, and for the programs you did not ask about, so you can see all of them at once.