Conventional New Construction Loans
Conventional New Construction Loans
We offer flexible Conventional New Construction Loans designed to help you purchase land and build your dream home with confidence. Our Conventional New Construction Loans programs make it easy to finance both the lot and the construction under one streamlined process.
With our Conventional New Construction Loans, you can build a primary residence with as little as five percent down, finance a second home with ten percent down, or invest in rental property with competitive down payment options starting at fifteen percent.
Reasons to choose a conventional
ground up construction loan
Our Conventional New Construction Loans combine purchase or refinance costs with renovation expenses into one convenient conventional mortgage. Instead of juggling separate financing options, multiple closings, or high-interest alternatives, Conventional New Construction Loans simplify everything into a single monthly payment.
With Conventional New Construction Loans, you avoid costly options like HELOCs, personal loans, or credit cards that can quickly increase your financial burden. By consolidating construction or renovation costs into one structured mortgage, you gain predictable payments and better long-term financial stability.
Whether you’re building from the ground up or transforming a fixer-upper, Conventional New Construction Loans give you the flexibility to improve your property without draining your savings or taking on unnecessary high-interest debt.
30-year conventional ground up construction guidelines
To qualify for a conventional new construction loan, you will need:
Apply for a conventional ground up construction loan
1 -4 unit properties are eligible for primary residences and investment properties. Second homes are only eligible for single-family homes.
No, however, you are able to obtain a 3% builder credit, which may be sufficient to cover substantially all of your closing costs.
On a typical conventional purchase or refinance, Scout Advisors can close in as little as 14 days. With a new construction loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to obtain builder approval, project approval and an appraisal.
Work should be completed within 11 months
The builder and borrower have agreed to the build time and the lender does a virtual inspection and checks for all permits before each draw. If there were issues or delays these should be caught before the end of the build period. The lender will work with the builder to get back on track.
Any expired credit documents will be need to be updated with the lender before the loan can be modified to a fixed loan (15 or 30 year). No new loan documents need to be disclosed to the borrower unless the updated credit documents show the borrower is ineligible for the closed loan. If the borrower is ineligible for the loan already closed, the borrower will need to work with the lender to be requalified for a new loan.
Eligibility of Barndominiums and all unique properties follow Conventional/VA guidelines and are contingent upon an appraisers ability to find comparable sales near the proposed subject property
You can build your home to any specifications agreed upon with your builder. The ability to finance the total cost will be contingent upon the appraisal and comparables in the area. Any dollar amount over the maximum LTV on the loan will be required to be paid by you borrower at closing.
Yes. The existing home foundation can be used for the new home, if allowed by local building codes. The demolition cost can be included in the budget.
Reach out to your Scout Advisors mortgage expert to obtain the new construction project and builder forms
