: During construction, you generally only pay interest on the funds that have already been drawn, rather than the full loan amount.
: Funds are released to your builder as they complete milestones, such as laying the foundation or finishing the framing. Lenders often require an inspection before releasing the next draw. construction financing
: Most lenders look for a DTI ratio below 45% . : During construction, you generally only pay interest
: 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. : During construction