2. Construction-only loan. With the construction-only loan approach, you take out two separate loans. One is solely for the construction of the home, which usually has a duration of a year or less.
Know what to expect before you finance a new construction home. A lot of patience is required to navigate the process of finding the right builder, obtaining a construction loan, and having your home built. Here is a step-by-step guide to financing new construction, as well as answers to a few commonly asked questions about new construction loans.