Because there is no finished house to serve as collateral, qualification is stricter than for standard mortgages.

: This covers only the build phase. Once the home is complete, you must pay off the loan in full, usually by taking out a separate mortgage. This involves two separate closings and two sets of fees.

: You must provide finalized blueprints, a detailed line-item budget, and a signed contract from a licensed and insured builder. Step-by-Step Process

: Only available if the borrower is also a licensed professional builder who will act as the general contractor. Eligibility & Requirements

: Specifically for buyers purchasing a "fixer-upper" to finance both the home purchase and significant upgrades.

: This loan automatically converts into a long-term mortgage (15 or 30 years) once the house is finished. It is popular because you only pay closing costs once.