There’s something special about building a home that fits your vision from the ground up. At Richmond Mortgages, we make that dream achievable with personalized construction loans designed to support every stage of your homebuilding journey. Whether you’re constructing your primary residence, vacation home, or custom property in Virginia, we guide you through the process with clarity, care, and confidence.
A construction loan is a short-term, specialized financing option that provides funds to cover the costs of building a new home. Unlike traditional mortgages that pay out a lump sum, construction loans release money in phases called “draws” as the building progresses.
Once construction is complete, the loan is often converted into a traditional mortgage a process known as a construction-to permanent loan.
Construction loans work in stages. Here’s how Richmond Mortgages helps clients navigate the process:
Construction loans work in stages. Here’s how Richmond Mortgages helps clients navigate the process:
We structure the loan based on the total project cost, which includes the land (if applicable) and the estimated cost to build. You may need a down payment of 10%–20%, depending on credit and lender criteria.
Funds are distributed in draws after construction milestones are reached (foundation, framing, roofing, etc.). Each phase is verified by inspection before the next draw is released.
During the build, you’ll make interest-only payments on the amount drawn. Once the project is finished, the loan either converts to a mortgage or you refinance into a new loan.
At Richmond Mortgages, we understand that each build is different. We offer flexible loan structures to meet your goals.
This is the most popular option, where your loan converts into a permanent mortgage after construction is complete. You save on closing costs by only having one closing.
If you plan to shop around for a mortgage after building, a stand-alone loan gives you short-term funding for construction only. This option may work well if you’re expecting a financial change before applying for a mortgage.
Ideal for major home remodels or fixer-uppers, these loans cover significant repairs, upgrades, or full-home renovations with construction-like financing terms.
When it comes to building your dream home, having the right financial partner makes all the difference.
With deep knowledge of Virginia’s housing market, building codes, and construction timelines, we provide local insight that out-of-town lenders can’t match.
We work closely with licensed builders, appraisers, and inspectors to make sure everything stays on track—from the blueprint stage to the final walkthrough.
Construction loans can feel complicated, but we make them simple. Our team walks you through timelines, interest payments, and closing details so there are no surprises.
If you’re ready to bring your vision to life, Richmond Mortgages is here to make it happen.
Let’s walk through your home financing journey together. Whether you’re buying your first home, refinancing, or planning ahead our experts are ready to answer your questions and provide tailored solutions.
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Get the edge you deserve. With our FREE NoTouch Pre-Approval process — there’s no cost, no credit hit, and no commitment. Just fast answers from a trusted lending partner who puts your savings first.
Whether you’re in Richmond, Short Pump, Glen Allen, Fredericksburg, or Spotsylvania — we’re helping homebuyers save thousands with:
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Construction loans provide the funds to cover building costs, allowing you to create a home tailored to your vision and lifestyle.
Select between a single-close loan that converts to a mortgage, or separate construction and mortgage loans—based on your preference and project timeline.
Pay only interest during the construction phase, helping you manage your finances while your home is being built.
Enjoy adjustable loan terms, custom draw schedules, and financing that aligns with your builder’s timeline and your budget.
