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construction-only mortgage
Finance the build now—convert to a permanent loan when your home is complete.
U build it
we'll help U finance it
Ready to build your dream home? A Construction-Only Loan from United is designed to cover just the construction phase of your home project. Once your home is complete, apply for a permanent mortgage loan that fits your long-term financial plan.
This loan can also be used to purchase the lot from a builder, provided construction will begin right away. With financing up to 95% loan-to-value (LTV) for qualified borrowers, you can get started with as little as 5% down.1
Whether you're working with a builder on a primary residence or a second home, we offer the flexibility and guidance you need to make the construction process smooth and stress-free.
Have questions? Our local mortgage advisors are ready to walk you through the process—from builder plans to loan closing and beyond.
Features
- Funds the construction phase only – Build now, then refinance into a permanent mortgage later
- Use to purchase the lot – If construction starts right away
- Up to 95% loan-to-value (LTV) – Get started with as little as 5% down1
- Available for primary or second homes – Great for full-time or vacation homes
- Work with your builder – Coordinate materials, timeline, and design with confidence
- Local support every step of the way – From pre-approval to project completion
Ideal For:
A construction-only loan is ideal for those ready to start building but not yet prepared to commit to permanent financing, offering the flexibility to secure the best long-term mortgage options after the home is complete.
Frequently Asked Questions
A: A Construction-Only Loan finances the cost of building your home during the construction phase. Funds are released in stages, or “draws,” based on your builder’s progress. Once the home is complete, you apply separately for a permanent mortgage that fits your long-term goals.
If you’d like help understanding the construction and draw process, connect with a Mortgage Advisor.
A: Qualified borrowers can start building with as little as 5% down, with financing available up to 95% of the loan-to-value (LTV). Your required down payment will depend on factors such as credit history, project cost, property type, and builder plans.
A Mortgage Advisor can help estimate your needed funds based on your project.
A: Yes. You may use the loan to purchase the lot as long as construction is scheduled to begin right away. The lot purchase becomes part of your overall construction financing, helping streamline the process.
If you already own the land, the equity in your lot may count toward your down payment—ask a Mortgage Advisor for details.
A: Construction-Only Loans are available for one-unit primary residences and second homes. Your project must meet standard underwriting requirements, including approved builder plans, cost estimates, and a construction timeline.
If you're unsure whether your home plan qualifies, a Mortgage Advisor can review your builder specifications.
A: After construction ends, the Construction-Only Loan is paid off by your new permanent mortgage. This gives you the flexibility to shop for the best long-term mortgage rate and loan program once your home is move-in ready.
If you'd like help planning your transition from construction financing to a permanent loan, speak with a Mortgage Advisor.
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Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] For well-qualified borrowers.