Construction Loan Guide, Florida

Don't Let the Loan
Stop Your Dream

We explain how construction financing connects to the build, introduce independent lenders, prepare the project documents they request, and manage construction from plans to keys.

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Varies
Credit and Qualification Guidelines
Lot
Equity May Reduce Cash Required
1
Possible With Construction to Permanent
Land
Appraised by the Lender
BuilderK is not a lender or mortgage broker. Loan approval, rates, fees, conversion, and qualification requirements are determined by the independent lender and loan program. For neutral background, see the Consumer Financial Protection Bureau's construction loan guide.

What Is a Construction Loan?

Unlike a traditional mortgage where you buy an existing home, a construction loan finances the building of a new home from the ground up.

Temporary Financing, Long Term Home

A construction loan is temporary financing that typically lasts 12 to 18 months. The lender releases funds in stages, called draws, as construction reaches specific milestones.

During construction, many programs charge interest on the amount already drawn. With an approved construction to permanent or single close structure, the loan is designed to convert after the lender's completion conditions are met. Other construction loans require separate permanent financing.

Compare the Complete Project

A custom build can be designed around your lot, priorities, and Florida requirements. Compare its complete project cost, financing, schedule, and appraisal with suitable resale alternatives in the same market.

How Draws Work

1

Loan Approved & Closed

Funds held in escrow by lender

2

Foundation Draw

Site work, slab, and foundation poured

3

Framing Draw

Structure, roof, windows installed

4

Interior Draw

MEP rough installation, drywall, finishes

5

Final Draw → Mortgage

CO received; lender verifies conversion conditions

Single Close vs. Two Closings

A single close can reduce repeated steps for some buyers, while two separate closings may offer different lender or rate options. Compare the actual Loan Estimates before choosing.

General comparison of single close and two closings construction financing; actual terms vary by lender.
Feature Single Close Two Closings
Number of closingsUsually 1Usually 2
Closing costsMay avoid a second eligible setTwo closings can create additional costs
Rate treatmentLock structure varies by programPermanent rate is set at the second loan
Qualification after constructionReduced, but lender conditions still applyNew approval is generally required
FlexibilityOne coordinated loan structureCan shop permanent financing later
How to compareReview each lender's Loan Estimate, fees, lock terms, and conversion conditions

What You Need to Qualify

Construction loan requirements vary, but lenders commonly review the following items in Florida.

Specific to the Loan Program

Lenders may consider credit, income, debt, reserves, down payment, appraisal, and project feasibility.

Lot Equity

Appraised land equity may reduce or replace cash required, depending on total project cost, borrower qualifications, and program rules.

Plans

Approved floor plans and construction budget from a licensed builder (that's us).

Licensed GC

A licensed general contractor. BuilderK is CGC #1537163; each lender independently reviews builder eligibility and project documents.

The Financing Process

Here is how financing fits into the BuilderK process from the first conversation through move in.

1

Free Consultation

We assess your budget, lot, and goals. No commitment.

2

Lender Match

We connect you with lenders who specialize in construction loans.

3

Early Loan Approval

Get approved before construction with your plans and budget in hand.

4

Close & Build

One closing. Construction begins. Draws released as we build.

5

Move In

Home complete. The lender verifies completion and any conversion conditions. Keys in hand.

Why Coordinate Financing With BuilderK?

BuilderK is not a lender. We prepare the project information your chosen lender needs from the builder.

Lender Relationships

We can introduce independent construction loan lenders across Florida. You compare programs and choose the lender that fits your situation.

Documents Ready for Lender Review

We organize the plans, budget, and builder documents so the lender can review a complete project package.

Licensed and Ready for Review

CGC License #1537163. Our license and project documents support lender review; builder approval remains specific to each lender.

How Lot Equity Can Help

Own your lot? Appraised land equity may reduce or replace cash required, subject to lender, appraisal, and program terms.

One Point of Contact

BuilderK coordinates the design, permits, construction, and project documents while your lender manages the loan.

Transparent Process

We document the project budget, allowances, and known exclusions. Site conditions, selections, and approved changes can still affect final cost.

Frequently Asked Questions

Everything you need to know about construction financing in Florida.

A construction loan is temporary financing that covers the cost of building a new home. Funds are released in stages (draws) as construction progresses. During building, many programs charge interest on funds already drawn. Permanent financing depends on whether you chose a construction to permanent structure or a separate loan.
Requirements vary by lender and program. Some programs use credit score guidelines alongside income, debt, reserves, down payment, appraisal, and project feasibility. Ask each lender which criteria apply to the specific program you are comparing.
A single close (construction to permanent) loan combines construction financing and a permanent mortgage in one closing. It may avoid a second set of eligible closing costs, but conversion, rate lock, appraisal, completion, and qualification conditions vary by lender and program.
If you own your lot, its appraised equity may count toward the lender's equity requirement and may reduce or replace cash required. The result depends on appraised value, total project cost, borrower qualifications, and the selected loan program.
Timing varies by lender, borrower documents, appraisal, builder review, plans, budget, title work, and program. BuilderK prepares the project documents promptly, but only the lender can provide an approval and closing timeline.
BuilderK's calculator provides one combined early planning range based on the home and feature selections you enter. Location, lot conditions, plan complexity, selections, and fees can materially change the range.
Not necessarily. Some construction loan programs can include land acquisition, while others require different timing or equity. Ask the lender how the lot purchase, appraisal, and closing must be structured before signing a land contract.

Ready to Get Started?

Talk with us about your project, budget, and financing questions. There is no commitment or pressure.

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