FAQs (data-driven)

Construction Loans

• What is a construction loan?

  A loan to finance the construction of your new home. Weekly unlimited draws are available, in-house underwriting, and 48-hour draw turnaround.

• How is a construction loan different from a traditional mortgage?

  A construction loan is designed to release funds to finance the construction of your new home. A traditional mortgage is for purchasing a previously built home.

• What is the difference between One-Time or Two-Time closing?

  One-time closing includes a single closing. Upon completion of construction, the loan coverts to a long-term mortgage; monthly payments will begin. Two-time closing includes closing two separate loans. The construction loan will be the first initial loan. Once construction is completed, the loan will be refinanced into a long-term mortgage. Each closing type includes benefits and flexibility.

• Will a down payment be required for a construction loan?

  Requirements may rely on eligibility and credit history. If you financed a lot loan, your equity has been growing. Take advantage of your equity for your down payment. For additional questions regarding your lot loan to construction loan, reach out to your Mortgage Loan Officer or visit a branch near you.

• Can self-employed borrowers qualify?

  Yes. Additional documentation will be required to verify income. Goldenwest is an Equal Housing Lender.

• What happens when construction is completed?

  Firstly, congratulations! Your new home is built. When construction is completed, depending on your closing type, your construction loan can either be converted to a long-term mortgage with one-time closing or be refinanced into a long-term mortgage with two-time closing.

• What closing costs can be expected with a construction loan?

  Closing costs may vary depending on the loan amount, location, and project type. Generally, it is recommended to expect 2% - 3% of the loan amount.