Building a home in Chesterfield County, Henrico, or anywhere in the greater Richmond metro is one of the most exciting financial decisions you’ll ever make. It’s also one of the most complex. Unlike a standard purchase mortgage, construction financing requires a broker who understands draw schedules, builder approvals, inspection timelines, and the difference between a one-time close and a two-time close structure.
Most retail banks and large online platforms don’t specialize here. They dabble. And choosing the wrong financing partner can stall your build before the first board goes up, cost you thousands in duplicate closing fees, or leave you scrambling for a permanent loan at conversion.
I’m Duane Buziak, NMLS #1110647, an independent mortgage broker serving Richmond-area homebuyers, builders, and investors through Coast2Coast Mortgage LLC NMLS #376205. This guide walks you through seven proven strategies to identify lenders who genuinely specialize in construction financing. Along the way, you’ll find a worked dollar example anchored to current Chesterfield County pricing, a side-by-side comparison table, and an 8-question checklist so you walk into your first lender conversation fully prepared.
One quick note before we dive in: you can start your search with a soft credit pull mortgage pre-qualification — meaning no hard inquiry hits your credit report until you’re ready to formally apply. At RichmondMortgages.com, we call this NoTouch Credit, powered by Vantage Score 4.0. It lets you compare construction loan terms across hundreds of lenders at one time without any credit-score impact. Let’s get into the strategies.
1. Look for Brokers Who Offer One-Time Close (OTC) Construction Loans
The Challenge It Solves
Two-time close construction loans require you to close twice: once on the construction loan and again on the permanent mortgage when the build is complete. That means two sets of closing costs, two rounds of underwriting, and exposure to whatever interest rate environment exists at conversion. If rates move against you during a 10-month build, you absorb that risk with no protection.
The Strategy Explained
A one-time close (OTC) construction loan combines both phases into a single closing. You lock your permanent rate upfront, pay one set of closing costs, and convert automatically to your permanent loan when the certificate of occupancy is issued. True construction specialists offer OTC across multiple programs: conventional, FHA, VA, and USDA. That program depth matters because your eligibility for each depends on your credit profile, down payment, and the property’s location.
The key question to ask any lender: “Do you underwrite OTC construction loans in-house, or do you refer them to a third party?” A lender who refers out has no real construction underwriting expertise. They’re a middleman with a middleman’s timeline and accountability.
Implementation Steps
1. Ask directly whether the lender underwrites OTC construction loans in-house or brokers them to another institution.
2. Confirm which OTC programs they offer — conventional, FHA, VA, and USDA should all be options if they’re a true specialist.
3. Ask about rate lock duration during the construction phase. Locks of 12 to 18 months are standard for construction timelines in Chesterfield and Henrico.
Pro Tips
VA construction OTC loans follow VA guidelines and can be used by eligible veterans with credit scores as low as 500 FICO through certain wholesale channels. The VA home loan benefits page is a good starting point for understanding program eligibility before you talk to any broker. USDA OTC options may also apply in outer Chesterfield pockets — if you’re exploring USDA loan eligibility in Richmond, confirm your specific parcel qualifies before applying.
2. Prioritize Brokers Who Access Multiple Construction Lenders Simultaneously
The Challenge It Solves
A single bank can only offer its own construction programs at its own pricing. If their FICO minimum is 680 and you’re at 640, you’re done — regardless of how strong your income or down payment is. If their rates are uncompetitive, you have no leverage. Single-source construction financing is a structural disadvantage for borrowers.
The Strategy Explained
An independent mortgage broker accesses wholesale lenders across the country simultaneously. That creates real competition for your loan: better rate pricing, more flexible credit minimums, and access to niche programs that retail banks simply don’t offer. For Henrico and Chesterfield buyers, this means programs like VA construction loans down to 500 FICO, DSCR construction-to-permanent loans for investor builds, and Non-QM bank statement construction options for self-employed borrowers.
The no hard inquiry mortgage pre-approval process at RichmondMortgages.com — our NoTouch Credit system — lets you compare construction loan terms across this entire lender network without a single hard pull on your credit. You see real numbers before you commit to anything.
Implementation Steps
1. Ask any broker or lender how many construction-specific wholesale lenders they actively work with — not just how many lenders they access overall.
2. Request a side-by-side rate and fee comparison across at least three construction loan programs before choosing one.
3. Confirm the broker can run a no credit hit mortgage application pre-qualification using a soft pull before any formal submission.
Pro Tips
Broker access to wholesale pricing typically produces more competitive rates than retail bank pricing on construction loans, because wholesale lenders compete for broker volume. Understanding how to compare multiple mortgage lenders at once without hurting your credit is a key advantage when shopping construction financing. The CFPB’s construction loan guidance is a useful neutral resource for understanding how construction loan structures compare before you start shopping lenders.
3. Verify Builder Approval Requirements Before You Apply
The Challenge It Solves
Here’s a scenario that catches Richmond-area buyers off guard: you find a great lot in Midlothian, hire a local custom builder you trust, get pre-qualified, and then discover the lender won’t approve your builder. Loan denied — not because of your credit or income, but because your builder isn’t on that lender’s approved registry. This happens more than most buyers expect, and it’s entirely preventable.
The Strategy Explained
Most construction lenders require builders to be licensed, insured, and in some cases pre-registered on a lender-specific approved builder list. In Virginia, contractor licensing is managed by the Virginia Department of Professional and Occupational Regulation (DPOR). Any builder working on a financed construction project in Chesterfield or Henrico should have an active DPOR Class A or Class B contractor license — and you should verify it before signing a build contract.
Beyond licensing, construction specialists will typically want to see the builder’s general liability insurance certificate, workers’ compensation coverage, and in some cases a portfolio of completed projects. Lenders who ask for none of this are not construction specialists — they’re taking on risk they don’t understand.
Implementation Steps
1. Verify your builder’s active Virginia contractor license at dpor.virginia.gov before signing any contract.
2. Ask your mortgage broker which lenders your builder is already approved with — this can save weeks of back-and-forth during underwriting.
3. Request the builder’s certificate of general liability insurance and confirm the coverage limits meet your lender’s minimum requirements.
Pro Tips
If your builder is new or small, a broker who works with multiple lenders can often find a construction program with a less restrictive builder approval process than a single retail bank would require. For buyers building in Midlothian specifically, working with a mortgage lender familiar with Midlothian can streamline the builder approval process considerably. This is one of the less-discussed advantages of broker access in the construction space.
4. Worked Dollar Example: $525,000 New Build in Chesterfield County
The Challenge It Solves
Construction loan math is genuinely different from purchase mortgage math, and most buyers don’t realize how interest-only payments during the build phase affect their monthly budget. A concrete example anchored to Chesterfield County’s current new construction price band makes this real — and plannable.
The Strategy Explained
According to Virginia REALTORS market data, new construction in Chesterfield County has been trending in the mid-$500,000s for single-family homes. Let’s use a $525,000 build as our working example.
Construction Loan Amount: $525,000 (assuming 5% down = $26,250, financing $498,750). Note: this falls well within the 2026 conforming loan limit for the Richmond metro — confirm the current figure at fhfa.gov before your application.
Draw Schedule (simplified): Construction lenders fund in draws tied to build milestones. A typical 5-draw structure for a Chesterfield new build might look like this:
Draw 1 — Foundation complete: $99,750 (20% of loan)
Draw 2 — Framing and roof: $124,688 (25%)
Draw 3 — Rough-in (plumbing, electrical, HVAC): $99,750 (20%)
Draw 4 — Drywall and interior: $99,750 (20%)
Draw 5 — Final completion and certificate of occupancy: $74,812 (15%)
Interest-Only Payment Estimate During Build: During construction, you pay interest only on the amount drawn — not the full loan balance. At a hypothetical 7.5% construction rate, after Draw 1 ($99,750 drawn), your monthly interest payment would be approximately $623. After all five draws are funded ($498,750 drawn), your interest-only payment would be approximately $3,116 per month. These are illustrative figures — your actual rate depends on your credit profile and market conditions at the time of application.
At Conversion (Permanent Loan): On a one-time close structure, your $498,750 loan converts automatically to your permanent mortgage. At a 30-year fixed rate of 7.0% (illustrative), your principal and interest payment would be approximately $3,320 per month.
Implementation Steps
1. Budget for interest-only payments during the build phase — these are real monthly obligations that overlap with any current rent or housing costs you’re carrying.
2. Confirm with your broker whether your construction loan rate and permanent rate are locked at closing or subject to market movement at conversion.
3. Ask for a full draw schedule in writing before closing so you understand when each funding milestone triggers and what inspections are required.
Pro Tips
The interest-only period is typically 6 to 12 months, depending on build complexity. Custom homes in Chesterfield’s western corridors (Midlothian, Moseley) often run closer to 10 to 12 months. For a deeper look at Chesterfield County home loan options and how they apply to new construction, review current program details before locking a rate. Plan your cash flow accordingly, and confirm your builder’s estimated timeline before locking a rate.
5. Ask Specifically About Non-QM and Bank Statement Construction Options
The Challenge It Solves
Self-employed buyers — contractors, business owners, freelancers, consultants — are common in Richmond’s construction market. They often have strong income and significant assets, but their tax returns show lower net income after legitimate business deductions. Standard W-2 underwriting penalizes this group, and most retail banks have no alternative. The result: qualified buyers get turned down for construction loans they can genuinely afford.
The Strategy Explained
Bank statement construction loans use 12 to 24 months of personal or business bank deposits as the income documentation instead of tax returns. If your deposits consistently support the payment, you can qualify — even if your Schedule C shows modest net income. This is a wholesale-channel product that most retail banks and CapCenter don’t offer publicly. For a detailed breakdown of how this works, the bank statement home loan guide for Richmond covers the qualification process step by step.
For investors building rental properties in Henrico or Chesterfield, DSCR construction-to-permanent loans take a different approach entirely. Instead of qualifying on personal income, the loan underwrites based on the projected rental income of the completed property relative to the debt payment. If the property will cash flow, you can qualify — regardless of how many investment properties you already own or how your personal tax returns look.
Implementation Steps
1. If you’re self-employed, gather 12 to 24 months of bank statements before your first broker conversation — this is the core documentation for bank statement construction underwriting.
2. If you’re building an investment property, ask your broker specifically about DSCR construction-to-permanent programs and what rental income documentation they require.
3. Confirm the broker has active wholesale relationships with Non-QM lenders who underwrite construction loans — not just Non-QM purchase loans. These are different products.
Pro Tips
Non-QM construction loans typically carry slightly higher rates than conventional OTC programs, but for self-employed borrowers who can’t qualify conventionally, the comparison isn’t conventional vs. Non-QM — it’s Non-QM vs. no loan at all. A soft pull mortgage broker conversation at RichmondMortgages.com can quickly identify which program path fits your income documentation before you spend weeks chasing a conventional approval you won’t get.
6. Compare Construction Specialists vs. Standard Lenders
The Challenge It Solves
It’s easy for any lender to claim they do construction loans. The comparison table below cuts through that quickly. When you evaluate lenders side by side on the criteria that actually matter in construction financing, the differences become concrete and actionable.
The Strategy Explained
CapCenter is a well-known Richmond-area lender with a model that rolls closing costs into the rate — which works well for standard purchase transactions. In construction financing, however, that model creates friction. Two-time close structures involve closing costs at two separate points. And CapCenter does not publicly advertise Non-QM, DSCR, or bank statement construction programs, which limits options for self-employed buyers and investors significantly.
The table below evaluates RichmondMortgages.com (independent broker), CapCenter, and a generic standard retail bank across the key criteria that separate construction specialists from generalists.
Criteria | RichmondMortgages.com (Broker) | CapCenter | Standard Retail Bank
One-Time Close Available: Yes — conventional, FHA, VA, USDA | Not publicly advertised | Varies; often two-time close only
Non-QM / Bank Statement Construction: Yes — wholesale access | Not publicly offered | Rarely available
DSCR Construction-to-Permanent: Yes — investor builds in Henrico/Chesterfield | Not publicly offered | Not typically available
VA Construction FICO Minimum: 500 FICO via wholesale | Not published | Typically 620+
Lenders Shopped Simultaneously: Hundreds via wholesale network | Single institution | Single institution
Soft Pull Pre-Qualification: Yes — NoTouch Credit, no hard inquiry | Not confirmed | Rarely offered
Draw Management Support: Full draw schedule guidance | Limited construction-specific support | Varies widely
USDA Construction Eligibility: Yes — outer Chesterfield/Henrico rural pockets | Not publicly confirmed | Rarely offered
Implementation Steps
1. Use this table as a starting framework when interviewing any lender — ask each one to confirm or deny each row directly.
2. Pay particular attention to the Non-QM and DSCR rows if you’re self-employed or building an investment property.
3. If a lender can’t answer the VA FICO minimum question specifically, that’s a strong signal they don’t actively underwrite VA construction loans.
Pro Tips
Broker independence is the structural advantage here. Because RichmondMortgages.com isn’t captive to a single institution’s product menu, we can match your specific build profile — credit score, income type, property use, location — to the lender whose construction program fits best. For a broader look at how a Richmond VA mortgage broker creates structural advantages over retail lenders, that’s a fundamentally different conversation than what you get at a single-institution lender.
7. Use This 8-Question Checklist to Interview Any Construction Lender
The Challenge It Solves
Most buyers go into lender conversations without a framework. They hear confident language, see a polished website, and assume the lender knows what they’re doing. The 8 questions below are designed to surface real expertise fast — and reveal vague deflection just as quickly. A construction specialist will answer every one of these directly. A generalist will hedge.
The Strategy Explained
Think of this as your self-screening tool. You don’t need to be a mortgage expert to use it — you just need to ask the questions and listen for specificity in the answers. Here’s the full checklist, with what a strong answer looks like versus a red flag response.
Implementation Steps
Q1: Do you offer one-time close construction loans, and which programs — conventional, FHA, VA, USDA? Strong answer: “Yes, we underwrite OTC in-house across all four programs.” Red flag: “We can look into that for you” or naming only one program.
Q2: What is your builder approval process, and how long does it take? Strong answer: Specific documentation list (license, insurance, portfolio) and a defined timeline (typically 5 to 10 business days). Red flag: “We just need the builder’s name and license number.”
Q3: How is the draw schedule structured, and who manages the inspection at each draw? Strong answer: A clear explanation of milestone-based draws with a third-party inspector or title company managing disbursements. Red flag: Vague answer about “funding as needed.”
Q4: Can I lock my permanent rate at the initial construction closing? Strong answer: “Yes, on our OTC program your permanent rate locks at closing.” Red flag: “We’ll figure out the rate when the build is done.”
Q5: What is your minimum FICO for VA construction loans? Strong answer: A specific number (500 FICO through certain wholesale programs). Red flag: “We’d have to run your credit to know.”
Q6: Do you offer bank statement or Non-QM construction loans for self-employed borrowers? Strong answer: “Yes, we have 12-month and 24-month bank statement construction programs.” Red flag: “We’d need to see your tax returns.”
Q7: Can I get pre-qualified with a soft pull — no hard inquiry on my credit? Strong answer: “Yes, we use Vantage Score 4.0 for pre-qualification with no hard pull until formal application.” Red flag: “We’ll need to run your credit to give you any numbers.” For more on how this process works, see our guide to soft pull mortgage prequalification in Richmond.
Q8: What is your fastest close timeline for a construction loan, and what causes delays? Strong answer: A specific timeline (often 30 to 45 days for construction close) with honest disclosure of common delay factors (builder approval, appraisal, title). Red flag: “It depends” with no further specifics.
Pro Tips
Take notes during these conversations. A lender who answers all 8 questions with specificity and confidence has done this before. One who hedges on more than two or three of them is likely routing your loan through a third party — and you’ll feel that friction throughout your build. For additional consumer guidance on what to expect from construction lenders, the CFPB’s mortgage resources are a reliable neutral reference.
Your Construction Loan Roadmap: Putting It All Together
Finding a construction loan specialist isn’t about picking the lender with the most prominent advertising. It’s about finding a mortgage professional who has actually underwritten these loans before, understands draw schedules and builder approvals, and can access multiple programs — conventional OTC, FHA, VA, USDA, Non-QM, DSCR — in a single conversation.
In Chesterfield County, Henrico, and across the Richmond metro, new construction prices have climbed steadily, making the financing structure more consequential than ever. The difference between a one-time close and a two-time close, or between a conventional program and a bank statement option, can mean thousands of dollars and months of your timeline.
Here’s a prioritized implementation sequence based on the seven strategies above:
1. Start with a no hard inquiry mortgage pre-approval using NoTouch Credit — get your numbers without touching your credit score.
2. Confirm your builder’s DPOR licensing status at dpor.virginia.gov before signing a build contract.
3. Use the 8-question checklist to interview at least two or three construction lenders before choosing one.
4. Review the comparison table to understand where broker access outperforms single-institution options for your specific profile.
5. If you’re self-employed or building an investment property, ask specifically about Non-QM and DSCR construction programs from the first conversation.
At RichmondMortgages.com, I shop hundreds of construction lenders at once — with no credit impact until you’re ready to move forward. Whether you’re building a primary residence in Midlothian, an investment property in Glen Allen, or a custom home on one of The Fan’s new infill lots, the strategies in this guide give you a clear framework to evaluate any lender before you commit.
Ready to start? Call 804-212-8663 or get your personalized rate comparison today with no credit impact. I’ll match your build profile to the right construction loan program — and you’ll know your numbers before your builder breaks ground.
Disclaimer: Loan programs, rates, and terms are subject to change and borrower qualification. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to underwriting approval. Duane Buziak, NMLS #1110647, Coast2Coast Mortgage LLC NMLS #376205.
About the Author: Duane Buziak, NMLS #1110647, is an independent mortgage broker with Coast2Coast Mortgage LLC (NMLS #376205) serving homebuyers, builders, and investors throughout Richmond, Chesterfield County, Henrico, and the greater Virginia market. Recognized as Best Mortgage Broker in Virginia 2025 and a Scotsman Guide top producer, Duane specializes in construction financing, Non-QM programs, and complex loan structures that retail banks routinely decline. Reach him directly at 804-212-8663 or through RichmondMortgages.com.