Construction Lending Options
Financing
Together, we will make your dream home building a smoother experience from start to finish.
- If you are building on a lot that you already own, the land equity could cover the down payment requirement
- You can finance the cost of the land and construction together
- No loan extension fees with rate lock guarantee
- One-Time Close Loan Options
With the loan options below, interest rates are locked prior to construction beginning. Once construction is complete, the mortgage will convert to permanent financing. This saves you money by having one appraisal and one set of closing costs.
Apply NowLoan Types
VA Loans
For veterans and active-duty military, there is no maximum loan amount and allows for zero down payment.
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FHA Loans
For loans up to the FHA Limit of $472,030 with as little as 3.5% down. Flexible on credit scores, debt-to-income ratios, and faster approval timelines after financial setbacks like bankruptcy or foreclosure.
Jumbo Loans
Jumbo loans with as little as 5% down up to $1,000,000. Larger down payments required above that.
5/6 Arm Loans
For loans of all sizes, flexible down payments, and outside the box scenarios that don’t meet standard mortgage guidelines. This is an adjustable-rate mortgage with a fixed rate for the first 5 years.
USDA Loans
USDA home loans are for buyers in rural areas and some eligible towns determined by the US Department of Agriculture. Advantages include: no money down, lower credit score requirements than conventional mortgages.
Conventional Loans
Both Fannie Mae & Freddie Mac options for loans up to $726,200 with a minimum of 5% down.
No-Cost Refinancing
This special offer is designed so that Schumacher Homes clients can take advantage if interest rates are lower after closing, with a no-cost refinance! Schumacher Mortgage will cover all costs including any 3rd party fees.* This offer is good for up to 5 years from the conversion of the construction loan to permanent financing, and the client can apply for the refinance 180 days after the Certificate of Occupancy is received.
Rate-Lock Guarantee
Schumacher Mortgage gives you peace of mind by locking interest rates prior to construction and financial protection from loan extension fees that other lenders don’t. If construction time extends beyond the length of your construction loan due to building circumstances beyond everyone’s control (such as supply chain issues or weather), then Schumacher Mortgage guarantees that you will never pay a loan extension fee, and your interest rate will not change.
Request a Consultation
Request a consultation with a Schumacher Mortgage Representative.
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Schumacher Mortgage LLC (NMLS #2101256), an affiliate of Schumacher Homes
Benefits of Schumacher Mortgage
- Specialized in Construction Loans- Designed to simplify your home building journey.
- Seamless Experience- Close partnership with Schumacher Homes for smoother financing.
- Flexible Loan Programs - More options than many traditional banks.
- Personalized Service - Tailored solutions to meet your financial goals.
- Backed by Schumacher Homes -Strong support and trusted expertise.
- Freedom to Choose - You're welcome to use any lender that suits you best.
Understanding Construction Loans
Construction loans differ from traditional home loans. You can combine land and home costs into one loan, and a construction-to-permanent loan lets you lock in your interest rate before building begins. During construction, you make monthly interest-only payments based on funds disbursed. Lenders follow a draw schedule—releasing payments at key stages like foundation, roofing, drywall, and final completion. Inspections ensure progress before each draw. Schumacher Mortgage uses advanced technology to minimize delays between phase completion and inspection, helping your project stay on track. This efficient process keeps construction moving smoothly from start to finish.
Pre-Qualify
Schumacher Mortgage offers a no-cost, no-obligation consultation with a Loan Officer to estimate what you may qualify for. This thorough review outlines your purchasing power and future payments, helping you build your dream home with confidence. A Schumacher Mortgage pre-qualification gives you a clear view of your financing. Your Loan Officer will guide you through the process, explain loan options, answer questions, and discuss how your land factors into your financing. While Schumacher Mortgage is available to assist, you’re always free to choose the mortgage lender that best fits your needs.
Get Pre-Qualified*3rd party fees include lender fees, title fees, recording fee, and do not include discount points or taxes and insurance (and setting up impound accounts). The appraisal fee will be reimbursed as a line item credit to the borrower at closing.
To qualify for the extension fee waiver, all of the following must apply: Delays must not be caused by the homeowner. Examples of these delays could include permitting, home site delays or any delays out of the control of builder. VA loans cannot be extended past 12 months. If the home is not completed in 12-months, those loans must be paid off or refinanced into a temporary construction loan that will allow borrower to complete construction. Borrowers will then be required to pay off the loan or refinance at the end of the construction loan into a permanent loan. Additional fees may apply. All other loans, including conventional and FHA loans cannot be extended past 16 months. If the 16-month timeline is not met, those loans must be refinanced into a temporary construction loan that will allow borrower to complete construction and then refinance into market rate. Borrowers will then be required to pay off the loan or refinance at the end of the construction loan into a permanent loan. Additional fees could apply. If there are any material changes to the transaction, including borrowers’ ability to requalify for the loan after the loan closes, the extension fee waiver is not valid. Borrower will then be required to pay off the loan or refinance at the end of the construction loan into a permanent loan.
