Home Construction Loans

Create your dream house with our home construction loans. We believe everyone should have the opportunity to love and personalize their living space.

So, what makes a house a home? Maybe it’s a cozy fireplace you gather around on a cold winter night. Maybe it’s a hot cup of coffee on your porch swing while you watch the sun come up.

No matter what your home sweet home looks like, there’s no greater feeling than building your dream home from the ground up; that’s why we made it easy.


Home Construction Loans for New Residential Purchases and Additions

Tailored to support various needs, our home construction loans apply to new residential purchases, significant renovations, and land purchases.

Whether you're looking to buy a plot for your dream home or transform your current residence, we offer flexible home construction financing options that ensure a hassle-free transition from building to homeownership.

For existing homeowners, leveraging the equity in your current property can provide an additional avenue to fund your construction project. Our team of experienced loan officers are here to guide you through the process, helping you select the best financial path to turn your vision into reality.


Our Home and Land Construction Loans Advantage:

●    Construction financing for stick built, modular, or log homes
●    Financing for additions or renovations for existing homes
●    12-month interest-only construction periods with timely disbursements and inspections
●    One-time close, fixed rate loans for up to 30 years. No additional costs or fees.
●    Financing available for unique properties with excess acreage and additional buildings
●    One loan for construction and land, meaning one interest rate and one closing that will save you thousands in settlement fees.

Cut Costs with a Credit of $500!

New home construction tends to rack up additional costs and fees, outside of obtaining financing and working with a builder. For applications received in 2024 and closed by February 28, 2025, we’re offering a credit of $500 that can be applied to your loan fees*.


*This credit only applies to loans in which the majority of the loan funds go toward construction of a primary or second home. Total loan amount may include funds for land acquisition. Limited to one credit per construction project. This offer is subject to credit approval.

How Do Home Construction Loans Work?

Understanding the mechanics of home construction loans is key to realizing your dream of building a house. While the process might slightly differ depending on the type of construction loan needed, these loans are generally designed to facilitate the building process, offering unique features and a structured timeline.

Unlike traditional home loans, construction loans cater specifically to the complexities and requirements of construction projects.

Our Step-by-Step Process:

  1. Application and Approval: The journey begins with your application. Our team assesses your project's feasibility, your creditworthiness, and the estimated costs involved. Once approved, you're set to move forward.
  2. Disbursement of Funds: Construction loans typically operate on a draw schedule. Funds are disbursed in stages as construction milestones are reached. This ensures financial control and efficient use of resources throughout the building process.
  3. Interest-Only Payments: During construction, borrowers often make interest-only payments. This aspect of construction financing provides financial relief, as you only pay interest on the amount drawn, not the entire loan sum.
  4. Regular Inspections: To ensure project progression aligns with the draw schedule, regular inspections are conducted. This step is crucial for maintaining quality and timelines.
  5. Conversion to Permanent Mortgage: Upon completion of construction, the loan usually converts into a permanent mortgage. This transition means you'll start making regular payments on both the principal and interest.

Whether you're building your first home or crafting a farmhouse and countryside retreat, we're here to ensure that your financial foundation is as solid as the home you build. Reach out to our experts today to embark on a seamless and well-supported financial journey towards your dream home.


How to Qualify for a Home Construction Loan

Qualifying for a home construction loan is a unique process, different from obtaining a standard home loan. Here are some general guidelines:

●    Creditworthiness: A good credit score is typically important.
●    Down Payment: Be prepared for a substantial down payment.
●    Project Plan and Builder Details: Have a clear project plan and a reliable builder.
●    Financial Stability: Show your ability to manage the financial obligations of a construction loan.

The specifics can vary based on individual circumstances and loan types. At Horizon Farm Credit, we understand that every construction project and borrower is unique. That's why our team is dedicated to providing personalized guidance to help you navigate the qualification process. 

"It almost felt like you had a friend when we went back for the construction loan because we knew our loan officer at that point. It was easy to send her an email and give her updates."

Joe Yurchison

Get Started

Contact one of our home construction loan specialists to find out how Farm Credit can help you.