Construction Loan Florida, Finance New Home Construction in FL
Building a new home in Florida? Lena Polnet of Dynamic Funding Solutions originates construction loans and construction-to-permanent loans throughout Florida. Licensed in FL and PA, 28+ years experience. Call (215) 364-7171 to discuss your build.
How Construction Loans Work in Florida
A construction loan is a short-term loan (typically 12 months) that finances the actual building process. Funds are disbursed in draws as construction milestones are completed, foundation, framing, mechanical, drywall, completion. You pay interest only on what’s been drawn during construction. When the home is finished, the construction loan converts to a permanent mortgage (or you refinance into one). This is called a construction-to-permanent loan, one closing, no second closing after completion.
Construction Loan Requirements in Florida
Florida construction loans typically require: 20% down payment minimum (10% possible on some programs), strong credit (680+ preferred, 720+ for best rates), a licensed Florida general contractor or custom home builder, detailed construction plans and cost breakdown, property already owned or being purchased simultaneously. Owner-builder construction loans are available but limited, most lenders require a licensed GC. New construction in high-growth areas (Orlando suburbs, Tampa bay, South Florida) has strong lender appetite.
Construction Loan vs Builder Financing
Production builders (Lennar, D.R. Horton, Pulte) offer their own financing, but only for their homes, and rates often include a margin that subsidizes closing cost incentives. For custom construction or lot-plus-build scenarios, a broker-sourced construction loan gives you competitive rates across multiple wholesale lenders, not just one builder’s captive lender. Lena shops 100+ lenders to find the right construction product for your project.
FAQ, Construction Loans Florida
- Can I use a VA loan for new construction in Florida?
- Yes, VA construction loans are available in Florida for eligible veterans. VA construction-to-permanent loans require VA-approved builders and a VA appraisal of the completed home’s plans. The process is similar to conventional construction but with the VA’s eligibility and underwriting requirements. Not all lenders offer VA construction loans, call (215) 364-7171 to confirm availability for your project location.
- What is the maximum loan amount for a Florida construction loan?
- There is no specific construction loan limit separate from conforming or jumbo loan limits. In most Florida counties, the 2025 conforming limit is $806,500 for a single-family home. For construction in high-cost FL counties (some Miami-Dade and Monroe County areas), limits are higher. Jumbo construction loans are available above these limits, typically requiring 20-25% down and stronger credit profiles.
- How long does the construction loan process take in Florida?
- Approval and closing on a Florida construction loan typically takes 45-60 days from application, longer than a purchase mortgage due to the additional review of construction plans, builder credentials, and lot appraisal. Build times vary (6-18 months for custom homes). Having your plans, cost breakdown, and GC contract ready before applying speeds the process significantly.
Construction loans finance the building of a new home through a series of draws tied to project milestones. Florida’s high-growth markets, including Orlando, Tampa Bay, and Southwest Florida, have strong demand for construction-to-permanent financing as lot inventory and custom home building activity remains elevated.
Start Your Florida Construction Loan
Call (215) 364-7171 or visit dynamicfunding.net. Lena Polnet is licensed in Florida and Pennsylvania, fully digital process.
Dynamic Funding Solutions, Inc., NMLS #17144 | Lena Polnet, NMLS #17225 | Licensed in Pennsylvania and Florida | Equal Housing Lender