New Home Construction Loans

One home construction loan to build the space of your dreams

Build the home of your dreams, on your terms

The space you've dreamed of is possible. With a new home construction loan, you can cover the costs of your project, then convert your loan to a traditional mortgage when your dream home is finished.

One closing

Close once and cover your financing for construction and beyond.

Financing that fits

Make interest-only payments while construction is underway.

Peace of mind

We pay your builder as construction progresses, giving you one less thing to worry about.

Get closer to the home of your dreams
Application Requirements

Qualify for a new home construction loan

Create an account in our online application platform. Here's what you'll need to apply for a new home construction loan.

  • Social Security number
  • Employer contact information
  • Estimated income, assets and liabilities
  • Details on the property where you're interested in building

New Home Construction Loan Benefits
Make new home construction financing seamless

Bundle closings and purchases

Get one convenient closing for short-term construction and long-term financing as your construction-to-permanent loan converts to a traditional mortgage.

Make payments flexible

Make interest-only payments during the construction phase of your build.

Choose your financing options

Find the loan that best fits your needs, up to $3 million. Fixed and ARM options are available, as well as special financing options for medical personnel.

We're here to help you build your new home

Building a home from scratch is no small feat. That's why choosing the right mortgage banker is crucial. Our experienced bankers can help guide you through the new home construction loan process so you can build the home you've always wanted.

Learn about new home construction lending options

Your home is where life happens.

But locating and buying an existing home that includes everything you want—and need—can be challenging.

In some markets, it might be easier to find land and build your home from scratch. Or perhaps it's better to build your dream kitchen or add an extra bedroom to your current home.

If new construction is the right path for you, it's important to understand that construction loans are very different from traditional mortgages.

That's why choosing the right banker to help you through the process is crucial. At First Citizens, our experienced mortgage bankers will help guide you through the entire construction loan process to build the home of your dreams.

We'll recommend the right loan for your project, a timeline that works, and terms that make sense for you now and in the future.

We know local contractors and how to work with them to ensure the right funding is available as stages of work are completed.

We'll help you build in the right levels of cushioning in case of unexpected twists and turns, like materials shortages or weather delays.

We're with you every step of the way. And rest assured, when it's all done, we'll help put you in the house of your dreams.

To learn more, please contact a First Citizens mortgage banker today.

How to get started

Before you apply for a new home construction loan, it's important to plan ahead and gather everything you'll need to qualify.

Step 1

Find a builder

You'll need to have a builder in place before applying for a new home construction loan. This includes finalizing plans for the build.

Step 2

Gather your information

Collect the building contract with detailed pricing and timeline information, as well as proof of the builder's credentials.

Step 3

Get pre-qualified

Start a conversation with one of our lending experts. We'll help you understand your options and how much you can borrow before officially applying.

FAQ
People often ask us

A new home construction loan is a short-term, higher-interest loan that offers borrowers the funds required to build a residential property. This type of loan typically lasts 1 year, and construction must be completed during the time of the loan.

Prospective borrowers must provide detailed plans, a realistic budget and a construction timeline prior to getting approval for a new home construction loan. Once approved, the lender makes payments to the builder as the project progresses, while the borrower makes interest-only payments on the loan.

Most new home construction loans cover up to 90% of the cost of the land on which the home will be built, as well as permits, building materials and contractor labor. Depending on the loan, permanent fixtures like landscaping and appliances may also be covered. Coverage of these permanent fixtures requires a finished marketable property as part of the final draw documents to be able to pay the builder in full and convert to a permanent loan.

To qualify for a new home construction loan, prospective borrowers must go through the bank's normal credit approval process. They also must provide a signed construction or purchase agreement to the lender that includes a full construction timeline, detailed plans on the project and a realistic budget for it.

Construction loan rates vary, but new home construction loans typically have variable rates that are slightly higher than traditional mortgage rates because the home can't act as collateral—therefore posing a higher perceived risk if the borrower defaults on payments.

Insights
A few financial insights for your life

Normal credit approval applies.

Not applicable in all states.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.

Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.

NMLSR ID 503941