Get Your Free Construction Loan Quote
A construction loan is a short-term financing option designed to fund the building of a custom home or renovation project. Construction-to-permanent loans are particularly popular in Florida, combining short-term construction financing with permanent mortgage financing in a single product. During the construction phase, you typically make interest-only payments, which are drawn down as the build progresses. Once construction is complete, the loan converts to a standard mortgage with fixed or adjustable terms. This approach is more efficient than traditional two-step construction loans as it requires only one closing process and simplifies the overall financing timeline.
To qualify for a construction loan in Florida, you'll typically need a down payment of 20-25%, a credit score of at least 680, detailed blueprints and construction plans, and a licensed, insured Florida contractor. Lenders will closely review the builder's experience and qualifications since the loan is secured by the property under construction. Construction loans usually feature higher interest rates during the build phase compared to permanent mortgages because of the increased risk. The draw schedule is typically tied to construction milestones—as each phase is completed and inspected, funds are released to the builder. This staged funding approach protects both the lender and borrower by ensuring funds are used appropriately.
At MortgageQuoteNow.com, we work with experienced construction lenders across all 67 Florida counties to help you secure financing for your custom home build. Whether you're building your dream home, investing in residential construction, or planning a major renovation, we can connect you with lenders offering competitive construction loan rates and terms. Get your free construction loan quote today and take the first step toward building your custom Florida home.
New home construction is thriving across Florida, from custom waterfront homes in Lee County (Fort Myers, Cape Coral, Bonita Springs) and Collier County (Naples, Marco Island) to planned communities in Polk County (Lakeland, Winter Haven), Pasco County (Wesley Chapel, Land O' Lakes), St. Johns County (St. Augustine), and Osceola County (Kissimmee). We also serve builders and buyers in Miami-Dade, Broward, Palm Beach, Hillsborough, Orange, Duval, Volusia, Brevard, Seminole, Manatee, Sarasota, Marion, and Leon counties.
Our construction loan network extends throughout all Florida metro areas including Miami, Fort Lauderdale, Tampa, Orlando, Jacksonville, West Palm Beach, Sarasota/Bradenton, Daytona Beach, Melbourne, Ocala, Gainesville, Tallahassee, Pensacola, Fort Walton Beach, Panama City and surrounding areas.
Who a Construction Loan Is For
A quick way to see whether this loan fits your situation.
Best for
- Borrowers building a new home from the ground up
- Buyers who already own land or have a builder lined up
- Those with strong credit and 20%+ down
- Borrowers comfortable with one-close or two-close construction structures
Avoid if
- You're buying an existing home — use a standard purchase loan
- You don't have detailed plans, a budget, and a licensed builder
- You can't carry costs or rent through the build period
- Your credit and income don't support stricter construction underwriting
What You Need to Qualify
Down Payment
Typically 20-25% of total project cost required
Credit Score
Minimum 680+ for construction financing
Builder Qualification
Licensed, insured Florida contractor required
Construction Plans
Detailed blueprints and specifications needed
Land Ownership
Clear title to property or acquisition plan
Financial Reserves
Additional reserves may be required