Construction draws
Interest-only payments at 6.25%
Payment rises as the builder draws against the loan.
- $100,000 drawn
- $520.83
- $300,000 drawn
- $1,562.50
- $500,000 drawn
- $2,604.17
- $800,000 drawn
- $4,166.67
- $1,000,000 drawn
- $5,208.33
Building Businesses. Empowering Success.Your build. Our backing.
Your build. Our backing.
From lot to keys, one close.
Century Funding structures construction, lot and single-close mortgages so you only close once — and only pay interest on the funds you've actually drawn.
- $2M
- Max loan
- 85%
- Max LTV
- 1 close
- Lot → home
CA DRE #01930905NMLS MLO #1974007Single-Close Non-QM2-Step ConstructionLot & Land Loans
Programs
Three programs that take you from raw lot to keys.
Whether you're buying land, building ground-up, or refinancing into a long-term mortgage, we structure each step around the project.
Most popular
Single-Close Construction
One closing covers lot acquisition, construction, and permanent financing. Loan auto-converts to a 30-year fixed when the home is complete.
- Loan amounts
- $100K – $2,000,000
- Max LTV (primary)
- 85% @ 720+ FICO
- Max LTV (investment)
- 80% @ 720+ FICO
- Loan term
- 30-year fixed
- Construction phase
- Interest-only on drawn funds
- Min credit score
- 680
- Max DTI
- 43%
- Reserves
- 6–9 months PITI
- Mortgage insurance
- Not required
2-Step Construction
Short-term construction loan with interest-only payments, then a second closing into a long-term mortgage when the home is built.
- First closing
- 12-month interest-only
- Second closing
- Long-term fixed mortgage
- Down payment
- 10% minimum
- Min credit score
- 700
- Max DTI (perm loan)
- 45%
- PMI
- Required if 2nd-close LTV > 80%
- Origination discount
- 0.5% off second closing
- Doc-prep fee
- Waived on second closing
- Appraisal
- Required at each closing
Lot & Land Loan
Purchase the homesite now and lock in your build timeline. Roll into construction within 12 months.
- Structure
- 3-year call / 10-year balloon
- Down payment
- 25% typical
- Interest-only option
- 12 months while plans finalize
- Rates
- From 5.20% (market dependent)
- Eligible use
- Build within 12 months
- Roll-to-construction
- Yes — single transaction
- Doc requirement
- Plans & specs at close
- Liens accepted
- Unimproved lot only
- States
- CA + 25 additional states
Single-Close Non-QM Guidelines
Know where you fit before you apply.
Loan-to-value caps by occupancy and credit tier on our Single-Close Construction Non-QM program. Stick-built ground-up only.
Occupancy
FICO 680–719
FICO 720+
Max loan
Primary Residence
80%
85%
$2,000,000
Second Home
75%
80%
$2,000,000
Investment
75%
80%
$2,000,000
2–4 Unit
70%
75%
$2,000,000
DSCR (≥ 1.0)
—
80%
$1,500,000
• 30-year fixed, IO during construction, amortizes at modification.
• Reserves: 6 mo to $1M / 9 mo to $2M. Max DTI 43%.
• Bank-statement (12/24 mo), Full doc, or DSCR options.
Sample payments
Real numbers, transparent math.
Illustrative payments based on representative market rates. Final terms depend on credit profile, occupancy, and underwriting.
Permanent ARM (after build)
$800K — principal & interest
Priced at par — no points, no escrow required.
- 5/5 ARM @ 6.25%
- $4,987.14
- 7/1 ARM @ 6.375%
- $5,048.74
- 10/1 ARM @ 6.50%
- $5,113.70
- Loan amount
- $800,000
- Down payment min.
- 20%
Permanent ARM (after build)
$1,000,000 — principal & interest
Buy-down options available at closing.
- 5/5 ARM @ 6.25%
- $6,230.18
- 7/1 ARM @ 6.375%
- $6,310.93
- 10/1 ARM @ 6.50%
- $6,392.13
- Loan amount
- $1,000,000
- Min. FICO
- 700
Lot loan
$210,000 lot — 25% down
3-year call / 10-year balloon, 5.20% market.
- Down payment
- $52,500
- Amount financed
- $157,500
- P&I (amortizing)
- $1,685.97 / mo
- Interest-only option
- $682.50 / mo
- IO period
- 12 months
How it works
From scenario to keys, one team start to finish.
01
Submit your scenario
Tell us about the lot, the build, and your credit profile. Soft inquiry only — no hit to your score.
02
Plans, appraisal, term sheet
We order the 'as-completed' appraisal, review plans & specs, and structure draws, reserves, and pricing.
03
Close once, draw as you build
Builder draws against the loan; you only pay interest on what's funded. Loan modifies to permanent at completion.
FAQ
Questions borrowers ask us first.
Plain answers to the things you'd ask in a discovery call.
Why choose a single-close construction loan over two separate closings?+
With our single-close program, you go through underwriting once, pay one set of closing costs, and lock your permanent rate up front. When the build is complete, the loan simply modifies to a 30-year fixed — no second appraisal, no re-qualifying, no rate risk. It is the cleanest path from lot to keys for borrowers who want certainty.
How does Century Funding underwrite construction scenarios?+
We look at the total picture — your credit profile, the builder's experience, the plans and specs, and the 'as-completed' appraisal. We offer flexible documentation paths: 12- or 24-month bank statements, full doc, or DSCR for investment builds. Our guideline matrix is transparent, so we can pre-qualify you to a specific LTV and reserve requirement before you ever put a deposit down.
What reserves and documentation will I need at closing?+
Reserves range from 6 to 9 months of PITI depending on loan size — 6 months up to $1M, 9 months up to $2M. We will review your liquid assets during pre-approval so there are no surprises. Documentation options include bank statements, full income documentation, or DSCR-based qualification, which means we can match the right path to your financial structure.
How do draws work, and what will my payments look like during construction?+
Your builder submits draw requests as construction milestones are completed. We disburse funds directly, and you pay interest only on what has actually been drawn — not the full loan amount. Payments scale gradually as the build progresses, keeping your cash flow light during construction. Once the home is finished, the loan modifies to permanent financing with predictable principal and interest payments.
Can I buy the lot first and add construction financing later?+
Absolutely. Our lot and land loan lets you secure the homesite with as little as 25% down, then roll directly into construction financing when your plans and builder contracts are ready. You can even structure the first 12 months as interest-only while you finalize the build, giving you time and flexibility without losing the property.
Let's structure your next build.
Tell us about your project. We'll come back with loan structure, pricing, and a clear path to close.
- • Soft inquiry — no impact to your credit
- • Loan amounts $100K–$2M
- • Construction, 2-step, or lot loan options