Cape Coral Construction Loans

Home Construction Loans

Construction Loans


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If you want to build a new home with all the features that you want a construction loan may be the right fit for you. Construction loans offer you the flexibility to have a budget for a home build that will fit your needs. The builder gets paid with installment payments called draws as the home progresses towards completion.

Another great advantage of a construction loan is that if you do not own a property to build on you can add the cost of the land to the total amount financed for construction loan. This gives you the opportunity to find property and build your dream home in the location desired.

If you already own a piece of property and are looking to build on the property the equity value of the land can be used as a down payment for construction loans. Many times there is no additional funds needed to get a home built other than the equity in the lot.

There are several low cost down payments options available for construction loans. VA Construction loans offer qualified borrowers the ability to borrow 100% of the cost of construction and land. FHA Construction loans offer qualified borrowers the ability to build home with only 3.5% down. Fairview Lending can work with your preferred builder or refer you to local building experts such as Lauren Homes Inc to make sure builder understands financing options available.


What is a Construction Loan?

In short, a construction loan is a short-term loan that is used to pay for the cost of building a home, and typically it comes in 2 different types: the construction-to-permanent loan and the stand-alone construction loan. Let’s take a look at both of them.

Construction-to-Permanent Loan

The construction to permanent loan is simply a loan that you use to pay for the loan which then converts the loan balance into a permanent mortgage once you move in. It’s essentially two loans in one, making it a cost-effective and easy loan that a lot of people love. Let’s take a look at the pros and cons of a construction-to-permanent loan.


  • Great flexibility with contractors and where you can build
  • Low monthly payments
  • Interest only during construction
  • FHA, VA, and Conventional availability
  • Lot purchase/payoff can be included in the loan
  • Lot equity can be used for down payment
  • Lower overall closing costs
  • Not expected to make a full mortgage payment until you move in
  • Some lenders include closing fees in a one-time close deal with these loans
  • Stand-alone Construction Loan

On the other hand, the stand-alone construction loan covers just the construction. Compared to the all-in-one construction-to-permanent loan, you’ll need a separate loan once you move in. In general, the main difference between the two loans is that the goal of the stand-alone loan is for the lender to only pay for the construction that has been completed. For potential builders, this is a great loan if you have limited cash for down payments since the requirements are not as strict as a construction-to-permanent loan, but let’s take a look at the pros and cons to get a better idea of which loan you should choose.


Initial payments are typically interest-only, meaning they’ll be small
Qualifying for a Construction Loan

Fairview Lending Inc makes the process of qualifying for a construction loan easy. There is no obligation or cost to apply and we will guide you and your selected builder if you have one through the process.

If you Do not Have a Builder or lot Fairview Lending can help:

1- We have worked with several quality local builders and can give you names to expert real estate agents to select a lot and builders to design and build a home

2- We would work with you on a budget for construction loan and lot loan and you would work with builder and realtor within your qualified finance amounts.

If you have a Builder and lot already:

1- Fairview Lending would work with your builder to be an approved builder by lender. Just like an individual the builder needs to be qualified and have the financial ability to build the project.

2- After builder approval we would need a sales contract, specifications of what is going into the home, engineered plans/site plan.

3- Fairview Lending would order a project appraisal and then work with the builder and client for any other requested documents.

Call Fairview lending today to discuss financing a new construction builds. If you currently own a home you may be able to get your build started before having to sell your current home. We look forward to speaking with you and seeing what type of construction loans may be the best option for you.