Understanding Construction Loans

Ready to build your dream home in Florida? Custom home construction gives you complete control over every detail. At LBC Capital, we help turn your vision into reality with our specialized construction loan programs.

A construction loan works differently than a regular mortgage. This type of loan provides funds in stages as your builder completes different phases of construction. You’ll only pay interest on the amount drawn, not the full loan amount.

Building a custom home offers unique benefits. You’ll get complete control over your home’s design, modern energy-efficient features, your ideal location, and a home that matches your lifestyle perfectly.

The Florida Advantage

Our state’s real estate market makes now an ideal time to build. Florida offers growing property values, year-round building weather, flexible building regulations, and strong housing demand.

We bring decades of Florida construction lending experience to your project. Our team knows local building codes, contractors, and market conditions. We offer competitive interest rates, flexible down payment options, a fast approval process, and expert guidance throughout construction.

Construction vs. Traditional Loans

Traditional mortgages fund in one lump sum. Our construction loans provide staged funding that matches your building timeline. You’ll make interest-only payments during construction. We pay your contractor directly and convert your loan to a permanent mortgage after completion.

We understand Florida’s unique building requirements. Our construction loans account for hurricane-resistant construction standards, flood zone considerations, local building permits, and specific insurance requirements.

Ready to start planning your dream home? Our construction loan experts will guide you through every step. We’ll help you understand the process and find the right financing solution for your dream home. Contact us today to discuss your construction plans and learn more about our flexible loan options.

Types of Construction Loans and Requirements

Our Construction Loan Options

At LBC Capital, we offer several construction loan programs to match your needs. Our construction-to-permanent loans combine your construction and mortgage into one loan. This single-close option saves you money on closing costs. Our construction-only loans work best if you plan to refinance or pay cash after completion. For major renovations, our renovation construction loans help transform existing homes.

Qualification Made Simple

We make qualifying for your construction loan straightforward. Most borrowers need a credit score of 680 or higher. Down payments typically range from 10% to 20% of the total project cost. Your debt-to-income ratio should stay under 45%. Don’t worry if you’re not sure about these numbers – our team will review your situation and find solutions.

Your Loan Timeline

The construction loan process moves step by step. First, we review your application and financial documents. After approval, we create a draw schedule with your builder. This schedule determines when we release funds for each construction phase. Our inspectors verify progress before each payment. Most projects complete within 12 months.

Understanding Draw Schedules

Your builder receives funds in stages as work progresses. Common draw points include: Foundation completion Frame construction Roof and exterior finishing Interior rough-in work Final completion

Managing Your Payments

During construction, you only pay interest on the funds we’ve released. Your monthly payments stay low while building progresses. We handle contractor payments directly. This system protects your interests and ensures proper fund management.

Documentation Requirements

We keep paperwork simple but thorough. You’ll need: Construction plans and specifications Builder contract and license Cost breakdown Property plans Insurance certificates

Protecting Your Investment

Our construction loan process includes safeguards. We verify your builder’s credentials and work history. Regular inspections ensure quality work. We review all change orders and help manage cost overruns. Your project stays on track from start to finish.

Experience Makes the Difference

Our deep knowledge of Florida construction helps prevent delays. We understand local permitting processes, building codes, and weather considerations. This expertise helps your project move smoothly from groundbreaking to completion.

Ready to Move Forward?

Let’s discuss your construction plans and find the right loan program for your needs. Our construction loan specialists will explain your options and guide you through qualification. Building your dream home starts with the right financing partner.

Why Choose LBC Capital?

Our deep roots in Florida construction lending set us apart. We know local markets, understand regional building challenges, and maintain strong relationships with quality contractors. Our experienced loan officers live and work in Florida. This local presence means faster decisions and better service for your project.

From application to final inspection, we stay involved in your project. Our construction loan specialists answer questions quickly and solve problems before they affect your timeline. We coordinate with your builder, process draws promptly, and keep you informed about your project’s progress.

Florida Building Success Tips

Building in Florida requires special attention to detail. Your plans must meet strict hurricane codes and wind resistance standards. Flood zone requirements affect foundation design and insurance costs. We help you understand these requirements early in the process to avoid costly changes later.

Starting with detailed construction plans saves time and money. Work with your architect to include all features in your initial design. Create a realistic budget that includes permits, impact fees, and site work. Add a contingency fund for unexpected costs. Choose materials and finishes that meet Florida building codes.

Contractor Selection

Pick your builder carefully. We recommend contractors with: Strong Florida building experience Current licenses and insurance Good references from recent clients Solid warranty programs Clear payment schedules

Most Florida home builds take 8-12 months. Weather, permit delays, and material availability can affect this schedule. Our draw process helps keep your project on track. We review progress regularly and address delays quickly to protect your investment.

Getting Started with LBC Capital

Contact us today to begin your construction loan process. We’ll schedule a consultation to review your plans and discuss financing options. Our team will explain qualification requirements and help you gather needed documents. We make the construction loan process clear and straightforward.