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Construction Loans

Construction loans provide short-term financing for building new commercial or residential properties from the ground up. Funds are disbursed in stages as construction milestones are met, and the loan typically converts to permanent financing upon project completion.

Construction Loans in Florida — Build Financing Guide

Construction financing provides funds in stages as an eligible project is built. Residential and commercial construction programs vary widely, so the borrower, land, plans, builder, budget, appraisal, contingency, and exit to permanent financing all matter.

Requirements at a Glance

Plans and specificationsDetailed project plans and scope are generally required
Builder/contractorLender approval of the builder or general contractor may be required
Budget and contingencyA detailed line-item budget and adequate contingency are commonly reviewed
EquityRequired borrower equity varies by program, land value, project, and borrower profile
As-completed valueAn appraisal typically evaluates the property based on the proposed completed project

Key Benefits

  • Funds are released in draws as construction progresses
  • Some programs combine construction and permanent financing in one closing
  • Can finance eligible custom-home or commercial projects
  • Borrowers generally pay interest based on funds disbursed rather than the entire commitment during construction
  • A structured draw process helps align funding with completed work

How to Apply — Step by Step

1

Finalize plans, builder, and budget

The project needs enough detail for lender and appraisal review.

2

Review construction-loan structure

Compare one-time-close and two-close structures, term, equity, contingency, and permanent-loan plan.

3

Complete as-completed appraisal

The appraiser evaluates the proposed finished property using plans and specifications.

4

Close and begin draws

Draws are funded according to inspections and the lender’s approved schedule.

5

Finish construction and transition

After completion, the loan is paid off or converts/refinances into permanent financing according to the selected structure.

Who Qualifies?

Construction eligibility depends on borrower qualifications, land ownership/equity, builder approval, plans, budget, contingency, permits, project feasibility, as-completed value, and the permanent-financing or repayment strategy.

Build a realistic contingency into the project budget and understand exactly how change orders affect borrower cash requirements and the draw schedule.

Discuss Your Construction Financing Plan

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Who This Is For

Developers, builders, and property owners planning new construction projects who need phased funding aligned with their build timeline.

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Frequently Asked Questions

What are Construction Loans?
Construction loans provide short-term financing for building new commercial or residential properties from the ground up. Funds are disbursed in stages as construction milestones are met, and the loan typically converts to permanent financing upon project completion.
Who qualifies for Construction Loans in Florida?
Developers, builders, and property owners planning new construction projects who need phased funding aligned with their build timeline.
Does Beacon Mortgage offer Construction Loans?
Yes. Beacon Mortgage provides Construction Loans across all of Florida. Contact us at (407) 718-2223 or visit our Winter Garden office to discuss your project.
Inquire About Construction Loan Financing