Home Construction Loans

Finance building the home of your dreams with a 5% down construction loan.

Build Your Home with 5% Down

Use our construction loan program to build the home of your dreams from scratch. A home construction loan provides financing to build a new home, or renovate an existing property.

Construction Loan Features:

Have more room in your construction budget with our 5% down payment option.
Follow a simple process to finance the build phase of your home.
Upon completion of your home, the construction loan may be modified into a permanent loan, which may help reduce fees.

Easy Choice for Our Construction Loan

I love going up to our cabin…and you guys made building it possible, which is the best! Working with Merchants was a great experience.

Erin Liva, Construction Loan Customer

How is a construction loan different from a traditional mortgage loan?

A construction loan is short-term, existing for the duration of the home construction period. A traditional mortgage loan is much longer in duration, often for terms of many years.

Why is there a construction loan and a permanent loan phase of a home construction loan? Is that a benefit to me as a homeowner?

Yes, it is a benefit to you. The construction loan is structured differently than a traditional mortgage. The builder will typically take draws (payments) throughout the construction phase. During the construction process, you will only be charged monthly interest only payments on the amount of the loan advanced.

At completion, the loan may be converted into a permanent loan. Escrows will also be set up at that time for your property taxes and homeowners insurance.

Working with our mortgage lenders, you’ll be able to see your project come to life and have their expert guidance.

Learn More About Construction to Permanent Financing Choose a Lender

All mortgage loans are subject to credit approval.

* Construction and permanent financing are subject to separate credit approval. Terms and conditions may vary. 5% cash required from buyer.