Construction Loan Guide — Florida

Don't Let the Loan
Stop Your Dream

Building a home in Florida doesn't have to be complicated. We connect you with the right lender, guide you through the process, and manage everything from plans to keys.

Check My Eligibility →
680+
Min. Credit Score
0%
Down If You Own Lot
1
Single Close
Land
= Equity

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.

Short-Term Financing, Long-Term Home

A construction loan is a short-term loan (typically 12–18 months) that covers the cost of building your home. The money isn't given to you all at once — it's released in stages called "draws" as construction hits specific milestones.

During construction, you only pay interest on the amount that's been drawn. Once the home is complete, the loan converts into a traditional mortgage — this is called a construction-to-permanent loan, or one-time close.

Why Florida Buyers Love This

With Florida's population boom and rising home prices, building custom means you get exactly what you want — designed for Florida's climate, hurricanes, and your lifestyle — often for less than buying resale in the same area.

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-in, drywall, finishes

5

Final Draw → Mortgage

CO received, loan converts to permanent

One-Time Close vs. Two-Time Close

We recommend the one-time close for most Florida buyers. Here's why:

Feature One-Time Close ✓ Two-Time Close
Number of closings12
Sets of closing costs1 set2 sets
Rate locked before construction
Risk of not qualifying after buildNoneYes
ConvenienceSimpleComplex
Total savings$5,000–$15,000+
Best forMost buyersInvestors, cash-heavy buyers

What You Need to Qualify

Construction loans have specific requirements. Here's what lenders typically look for in Florida:

📊

680+

Minimum credit score. Some programs accept 620 with compensating factors.

🏠

0%

Down payment if you own your lot. The land equity counts as your down payment.

📄

Plans

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

🔑

Licensed GC

A licensed general contractor. BuilderK is CGC #1537163 — we're approved by lenders.

The Financing Process

From first conversation to move-in day — here's how it works with BuilderK:

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

Pre-Approval

Get pre-approved with your plans and budget in hand.

4

Close & Build

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

5

Move In

Home complete. Loan converts to mortgage. Keys in hand.

Why Finance Through BuilderK?

We're not a bank — but we make the lending process seamless.

🤝

Lender Relationships

We work with multiple construction loan lenders across Florida and match you with the best fit for your situation.

📋

Lender-Ready Package

We prepare your plans, budget, and builder documentation exactly how lenders need it — no back and forth.

🏗️

Licensed & Approved

CGC License #1537163. We're already approved with construction loan lenders, which speeds up your approval.

💰

Land = Equity

Own your lot? Your land counts as equity, potentially eliminating the need for a cash down payment entirely.

📞

One Point of Contact

Financing, design, permits, and construction — all coordinated through BuilderK. No juggling multiple companies.

🔒

Transparent Process

No hidden fees, no surprises. We give you a clear budget upfront and stick to it throughout construction.

Frequently Asked Questions

Everything you need to know about construction financing in Florida.

What is a construction loan? +
A construction loan is short-term financing that covers the cost of building a new home. Funds are released in stages (draws) as construction progresses. During building, you typically pay interest only on what's been drawn. Once complete, the loan converts to a traditional mortgage.
What credit score do I need? +
Most construction loan programs in Florida require a minimum credit score of 680. Some lenders may accept 620 with compensating factors like a larger down payment, strong income, or significant savings. We can help you find the right lender for your situation.
What is a one-time close loan? +
A one-time close (construction-to-permanent) loan combines your construction financing and permanent mortgage into a single loan with one closing. This saves you thousands in closing costs and eliminates the risk of not qualifying for your permanent mortgage after the home is built.
Can I use my land as a down payment? +
Yes! If you already own your lot, the equity in your land can serve as your down payment. Depending on the lot's appraised value relative to your total project cost, you may be able to finance your new home construction with 0% additional cash down.
How long does it take to get approved? +
Pre-approval can happen in as little as 1–2 weeks once you have your builder agreement, plans, and financial documentation ready. BuilderK prepares all builder-side documents to speed up this process. Full approval and closing typically takes 30–45 days.
How much does it cost to build in Florida? +
Building costs in Florida vary by location, size, and finish level. As a general range, expect $180–$350+ per square foot for custom construction. A 2,000 sqft home might cost $360,000–$700,000 depending on specifications. Contact us for a free estimate based on your specific plans.
Do I need to own the lot before applying? +
Not necessarily. Many construction loans can include lot purchase as part of the financing. If you've already identified a lot but haven't purchased it, the construction loan can often cover both the land acquisition and the building costs in a single loan.

Ready to Get Started?

Let's talk about your project, your budget, and your financing options. No commitment, no pressure — just a conversation.

Check My Eligibility →