Build your custom dream home from the ground up with flexible financing tailored to every phase of construction. A construction loan from Fairway combines your land purchase, building costs, and long-term mortgage into a streamlined financing solution. Enjoy structured builder disbursements, predictable payment options during construction, and a seamless transition to permanent homeownership once your build is complete.
A construction loan is a specialized, short-term financing option designed to cover the costs of land acquisition, site preparation, materials, and contractor labor when building a custom or semi-custom home. Unlike standard home purchase loans where funds are disbursed in full at closing, construction loan funds are paid out in staged installments—known as “draws”—as your builder reaches specific construction milestones.
Fairway offers construction-to-permanent loan options, which allow you to finance the building process and transition into a permanent 15- or 30-year mortgage upon completion. This convenient single-close structure means you only go through the loan closing process once, saving time and reducing administrative closing costs.
Whether you already own a lot or are purchasing land and building simultaneously, your Fairway mortgage advisor will help structure a construction financing strategy aligned with your timeline and builder schedule.
Building a home gives you complete control over your living space. Financing your build with Fairway provides key advantages:
How does the draw schedule work for a construction loan?
Instead of receiving a lump sum, funds are released in planned stages (draws) based on completed work—such as foundation, framing, plumbing/electrical, and final finishes. Prior to releasing each draw, a property inspector verifies that the work meets quality and progress guidelines.
What are the requirements to qualify for a construction loan?
Construction loans involve additional evaluation steps compared to existing home purchases. Qualifications typically include credit profile reviews, financial reserve requirements, detailed architectural plans, a itemized build budget, and approval of your licensed, insured general contractor.
Can I use a VA loan for custom home construction?
Yes! Eligible active-duty military, veterans, and surviving spouses may qualify for VA construction financing options. Eligible borrowers can build a custom home with zero down payment requirements*, subject to VA builder registration and property guidelines.
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds VA county limits. VA loans subject to individual entitlement amounts, credit guidelines, and property limits.
What happens when home construction is finished?
With a single-close construction-to-permanent loan, your loan automatically modifies into a standard fixed-rate primary mortgage once the final certificate of occupancy is issued, eliminating the need for a second loan closing.
Fairway is an equal housing lender. Financial qualifications, minimum credit scores, contractor approval, detailed plans/specifications, and reserve requirements apply for all construction loan products. Fairway is not affiliated with or acting on behalf of VA, HUD/FHA, USDA, or any government agency.
