New construction loans are typically structured with staged funding, where money is disbursed in draws as construction milestones are completed. Builders or investors receive funds throughout the project rather than in a single lump sum.

New construction loans can cover a range of project costs including land acquisition, labor, materials, permits, and other construction-related expenses, depending on the lender and loan structure.

Many lenders consider construction or real estate experience when evaluating a loan application, but requirements vary. Some programs are available for newer investors or builders, especially when working with qualified contractors.

Funds are typically released in stages, known as draws, based on the completion of specific phases of construction. Inspections may be required before each draw is approved and released.

Yes. Many new construction loan programs allow borrowers to finance both the purchase of land and the cost of construction within a single loan, depending on the lender’s guidelines.

Credit score requirements vary by lender and loan program. In addition to credit, lenders often evaluate factors such as project feasibility, builder experience, and overall financial profile.

Closing timelines vary depending on the lender and the complexity of the project, but new construction loans can often close within a few weeks once all required documentation is provided.

Yes. Many construction loan programs are designed for investors building spec homes, allowing them to finance projects intended for resale upon completion.

After construction is completed, borrowers may sell the property or refinance into a long-term loan, depending on their investment strategy and the loan structure.