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