Construction Loan Payment Calculator
Calculate monthly payments during construction (interest-only) and after conversion to permanent mortgage.
Construction Loan Results
Construction Draw Schedule Calculator
Calculate disbursement amounts for each construction phase and cumulative interest.
Draw Schedule Results
Interest-Only Period Calculator
Calculate monthly interest-only payments during the construction phase as draws increase.
Interest-Only Payment Schedule
Construction-to-Permanent Loan Calculator
Calculate total costs for a single-close construction-to-permanent loan vs. two separate closings.
Construction-to-Permanent Comparison
Construction Loan Reference Guide
Compare loan types, current rate ranges, and qualification requirements.
Construction Loan Types Comparison
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Min. Down Payment | 20% | 3.5% | 0% | 0% |
| Min. Credit Score | 680+ | 580+ | 620+ | 640+ |
| Rate Range (2024) | 7-9% | 6.5-8% | 6-7.5% | 6.5-8% |
| Max Loan | Varies | $472K-$1.1M | No limit | Area limit |
| PMI/MIP | If <20% | Yes (life) | Funding fee | Guarantee fee |
| Builder Req. | Licensed | FHA approved | VA registered | Licensed |
| Owner-Builder | Some lenders | No | No | No |
| Const-to-Perm | Yes | Yes (203k) | Yes | Yes |
Typical Draw Schedule
| Draw | Phase | % of Loan | Cumulative |
|---|---|---|---|
| 1 | Foundation & Site Work | 15% | 15% |
| 2 | Framing & Roof | 25% | 40% |
| 3 | Mechanical (HVAC, Plumbing, Electric) | 20% | 60% |
| 4 | Interior (Drywall, Flooring, Cabinets) | 20% | 80% |
| 5 | Finish (Paint, Fixtures, Landscaping) | 15% | 95% |
| 6 | Final (Punch list, CO) | 5% | 100% |
Construction Loan Costs Breakdown
| Cost Item | Typical Range | On $300K Loan |
|---|---|---|
| Closing Costs | 2-5% | $6,000-$15,000 |
| Origination Fee | 0.5-1.5% | $1,500-$4,500 |
| Appraisal (plans) | $500-$1,500 | $750 |
| Inspection Fees | $100-$500/draw | $600-$3,000 |
| Title Insurance | 0.5-1% | $1,500-$3,000 |
| Builder's Risk Insurance | 1-3% annually | $3,000-$9,000 |
| Interest Reserve | Varies | $8,000-$15,000 |
Construction Loan Calculator Guide
Our construction loan calculator helps you understand the true cost of financing a new home build. Calculate interest-only payments during construction, estimate your draw schedule, and compare construction-to-permanent loan options from conventional, FHA, VA, and USDA lenders.
What Is a Construction Loan?
A construction loan is a short-term financing option (12-18 months) used to build a new home. Unlike a traditional mortgage, the lender disburses funds in stages called "draws" as construction milestones are completed. During construction, you make interest-only payments on the amount disbursed — not the full loan amount. After completion, the loan converts to a permanent mortgage or must be refinanced.
Construction Loan Rates
Construction loan interest rates are typically 1-2% higher than conventional mortgage rates. Current ranges: Conventional 7-9%, FHA 6.5-8%, VA 6-7.5%, USDA 6.5-8%. Rates depend on credit score, down payment, loan amount, and market conditions. Construction-to-permanent loans may offer rate locks before construction begins.
How Do Construction Loans Work?
Construction loans follow a specific process: 1) Get pre-approved with construction plans and budget. 2) Choose a licensed builder. 3) Close on the loan. 4) Builder requests draws as work progresses. 5) Lender inspects and releases funds. 6) You pay interest-only during construction. 7) Loan converts to permanent mortgage at completion.