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Building your own home is an exciting and challenging process. Construction and lot loans are structured differently from conventional home loans and have special guidelines. These loan products have different underwriting and processing requirements and include monitoring to ensure timely completion. Financing new home construction or a new lot purchase requires a lot of planning and careful consideration. As the borrower, you will need to provide property and plan details in order to obtain a loan. 

Lot loans: Lot loans allow you to purchase the site or lot where you plan to build your future home. These types of loans can have different loan terms, down payment requirements, and additional buyer commitments than conventional home loans.

Construction loans: These loans typically help fund the construction of new custom or semi-custom home. The construction on these homes start from the ground up and are not being sold by the builder. Construction loans involve different paperwork and procedures compared to conventional home loans.


Benefits of Construction & Lot Loans

  • Build the custom home you have always dreamed of having, instead of buying a home someone else has designed.
  • You’ll be able to choose and customize the layout, finishes, paint colors, and more before you even move in.
  • New homes are built to higher safety standards and with safer new construction materials.
  • You can design and build your new home to be energy efficient, which will save you money on utility costs and may qualify you for tax breaks.
  • Construction-to-permanent loans, or one-time closing programs, allow you to automatically switch to permanent financing after the construction is completed.
  • Instead of building up equity slowly and over time, building your own home will create instant equity.


Finding and working with the right lender is important when looking into construction and lot loans. To better serve your needs, we work with you from the very beginning until the funding day – making the process smooth and seamless.
 We have an effective and powerful one-time close program and competitive rates.

 Call today to discuss your options with Summit Mortgage Corporation.


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