A Guide by Capital Home Mortgage
Florida’s real estate market continues to grow, making it an attractive location for building new homes. Whether you’re dreaming of a beachfront cottage or a home in central Florida’s suburbs, understanding how to qualify for a construction loan is essential. At Capital Home Mortgage, we help Floridians turn their blueprints into reality with tailored construction loan solutions. In this guide, we’ll break down everything you need to know about qualifying for a construction loan in Florida.
What is a Construction Loan?
A construction loan is a short-term financing option used to fund the building of a new home. Unlike traditional mortgages, which are disbursed as a lump sum, construction loans are paid out in stages as the construction progresses. Once the home is completed, the loan is typically converted into a permanent mortgage—a process often referred to as a construction-to-permanent loan or one-time close loan.
Capital Home Mortgage offers both one-time close and two-time close construction loans across Florida, ensuring flexibility based on your needs.
Key Requirements to Qualify for a Construction Loan in Florida
Qualifying for a construction loan in Florida involves more documentation and stricter credit requirements compared to traditional mortgages. Below are the main factors lenders like Capital Home Mortgage evaluate:
1. Strong Credit Score
Lenders typically look for a credit score of 680 or higher to approve a construction loan. A strong credit profile shows financial responsibility and reduces the risk for lenders.
2. Stable Income and Employment
You’ll need to provide proof of steady income and employment history. Pay stubs, W-2s, and tax returns for the past two years are usually required. Self-employed individuals should provide additional documentation such as profit and loss statements.
3. Detailed Construction Plan
Lenders will require:
-
A signed contract with a licensed builder or general contractor
-
A detailed budget and timeline for the construction
-
Architectural plans or blueprints
-
Building permits and zoning approval
Capital Home Mortgage works closely with borrowers and their builders to streamline this process and ensure all documentation is complete and compliant.
4. Down Payment Requirements
Construction loans typically require a down payment of 10% to 20%. FHA and VA construction loan programs may allow for lower down payments, especially for qualified veterans or first-time homebuyers.
At Capital Home Mortgage, we offer multiple options—including low down payment construction loans—to make building your Florida home more accessible.
Popular Types of Construction Loans in Florida
✅ One-Time Close Construction Loans
These loans combine the construction and permanent mortgage into one closing, saving time and closing costs. Perfect for buyers who want a streamlined experience.
✅ Two-Time Close Construction Loans
This option involves two separate closings—one for construction and another for the mortgage. It can offer more flexibility, especially if your financial situation may change during the build.
✅ VA and FHA Construction Loans
Government-backed construction loans are available for eligible veterans (VA) and low-to-moderate income borrowers (FHA). Capital Home Mortgage specializes in VA One-Time Close Loans and FHA Construction Loans in Florida.
Tips to Improve Your Chances of Getting Approved
-
Work with experienced professionals: Choose a reputable lender like Capital Home Mortgage and a licensed Florida builder.
-
Reduce your debt-to-income (DTI) ratio: Pay down credit card balances and avoid new debt before applying.
-
Get pre-qualified early: Knowing your budget helps avoid delays.
-
Have reserves ready: Some lenders require cash reserves to cover several months of payments.
Why Choose Capital Home Mortgage for Your Florida Construction Loan?
At Capital Home Mortgage, we make the construction loan process simple, transparent, and efficient. With years of experience serving Florida homeowners, we offer:
-
Flexible loan options tailored to your project
-
Competitive interest rates
-
In-house underwriting and fast approvals
-
Dedicated support from application to final funding
We proudly serve all areas across Florida, including Miami, Tampa, Orlando, Jacksonville, and the Florida Panhandle.
Start Building Your Florida Dream Home Today
Qualifying for a construction loan doesn’t have to be complicated. With the right guidance and financial support from Capital Home Mortgage, you can build the home you’ve always envisioned.
📞 Contact us today to speak with a construction loan specialist and get pre-qualified.
