Building your dream home is exciting—but financing it can feel overwhelming. A construction loan can simplify the process and keep your budget on track.
🏗️ Pay as You BuildFunds are released in stages (“draws”) as construction progresses, and you only pay interest on what’s been spent.
Example:
Home cost: $450,000
Loan type: Construction-to-permanent, 4 draws
Draws & Interest Payments:
Foundation – $100,000 → Interest ~$500/month → Payment: $500
Framing – $100,000 → Interest ~$500/month → Payment: $1,000
Exterior – $100,000 → Interest ~$500/month → Payment: $1,500
Interior Finish – $150,000 → Interest ~$750/month → Payment: $2,250
*Interest-only on funds disbursed. Early payments are low and grow as construction progresses.🏡 Customize Without Compromise
Construction loans let you choose layouts, finishes, and features exactly how you want.
Example:
Budget-friendly: $25,000 for standard kitchen cabinets and quartz countertops
Premium: $60,000 for custom cabinets, high-end appliances, and marble countertops
Benefit: You can scale your choices to fit your budget, rather than being limited by existing homes.
💳 Streamline FinancingMany lenders offer construction-to-permanent loans, which convert to a traditional mortgage once your home is complete.
Example:
Total loan: $450,000
Interest-only during construction: ~$2,250/month (from example above)
Post-construction 30-year fixed mortgage at 6%: ~$2,700/month
Benefit: One application, one closing, and no need to juggle multiple loans.
🔒 Budget ControlLenders require a detailed construction plan and budget, keeping costs predictable.
Example:
Estimated build cost: $450,000
Contingency: $20,000
Lender ensures draws match milestones, so you don’t overspend upfront
Benefit: You see exactly where your money is going at every stage.
🌟 Build With ConfidenceLender inspections and milestone draws protect your investment. You know the home is built correctly before releasing more funds.
Example:
Milestone inspections: foundation, framing, exterior, interior finish
Ensures each $100k–$150k draw is earned
Benefit: Peace of mind knowing your money is tied to progress.
Ready to Build Your Dream Home?A construction loan can make a custom home achievable and stress-free. Vision Construction can guide you through the process and connect you with trusted lenders in Middle Tennessee.
Contact us today to explore financing options and start building your dream home!