Conventional Construction Loan

When you’re ready to build a home from the ground up, choosing the right financing is just as important as selecting your floor plan or location. At Capital City Home Loans, we offer Conventional Construction Loans—flexible, affordable options designed for borrowers who meet traditional credit and income guidelines and want to build a primary or second residence.

If you’re a financially qualified buyer looking for stability, low rates, and long-term savings, a conventional construction loan may be the perfect fit.

What Is a Conventional Construction Loan?

A Conventional Construction Loan provides the funds to build a new home and typically transitions into a traditional mortgage once construction is complete. This loan is backed by private lenders rather than government agencies and is often structured as a Construction-to-Permanent Loan, meaning you’ll enjoy a single closing for both phases of the loan.

With this option, you lock in your interest rate upfront, make interest-only payments during construction, and then convert to a standard fixed-rate or adjustable-rate mortgage once your home is finished.

Benefits of a Conventional Construction Loan

This type of construction financing offers several key advantages:

One-time close option available
Competitive interest rates for qualified borrowers
Interest-only payments during the build
Fixed-rate and adjustable-rate loan options
No mortgage insurance required with 20% down
Long-term cost savings compared to government-backed loan programs

Conventional construction loans are ideal for borrowers who want to build a custom home while locking in favorable terms and avoiding the restrictions of FHA or VA loan programs.

Who Should Consider a Conventional Construction Loan?

This loan is designed for borrowers who meet traditional lending standards and want a streamlined construction-to-permanent process. It’s a great fit for:

Buyers building a primary residence or second home
Borrowers with strong credit and stable income
Homeowners who already own land or plan to purchase land for the build
Individuals who want to combine construction and permanent financing in one
Buyers looking for flexibility in rate and term selection

Whether you’re a first-time builder or designing your dream retirement home, this loan gives you the control and affordability to build with confidence.

Conventional Construction Loan Requirements

Borrowers interested in this program typically need to meet the following requirements:

Minimum credit score of 680 or higher
Debt-to-income ratio generally under 45%
Minimum down payment of 5% to 20%, depending on profile
Documented income, assets, and employment history
Detailed builder contract, budget, and construction plans
Property must be a site-built home (not manufactured housing)

Our loan consultants will walk you through every step—from builder approval and appraisals to draw schedules and loan conversion—ensuring you have expert guidance at every stage.

Lake Oconee Office – Your Local Lending Partner

Our Lake Oconee Office in Greensboro, GA proudly serves clients across the region with personalized construction lending solutions. Whether you’re building on a private lot or within a planned community, we’ll help you choose the right financing to match your project and goals.

Lake Oconee Office
1020 Parkside Commons | Suite 102, Office 101-G
Greensboro, GA 30642
Phone: 706.225.8554

With deep knowledge of the local market and years of experience in construction lending, our team is here to ensure a smooth and stress-free process from start to finish.

Build Smart with a Conventional Loan

If you’re ready to build and want a cost-effective, conventional way to finance it, Capital City Home Loans is here to help. Our Conventional Construction Loan gives you the structure, savings, and stability you need to build the home you’ve always envisioned.

Contact us today to get pre-qualified and speak with one of our experienced mortgage consultants. Let’s build your future—one step, and one strong foundation, at a time.