Understand how construction loans work, from staged funding and risk controls to qualification requirements and permanent financing transitions.

Construction loans are short-term, interest-only loans used to build on undeveloped land. Qualification for FHA construction loans requires a 3.5% to 10% downpayment and a credit score of 500+.

You can use a VA loan to build and finance a property you’ll use as your primary residence. However, you cannot use this type of loan to fund the construction of a vacation home or investment property ...