Your Guide to Construction Loans

Finance your dream home build with our complete guide to construction loans. Learn how these loans work, explore different types like FHA and one-time close, and understand how they compare to traditional mortgages to fund your project from foundation to finish.

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Author: Staff Writer
Last update: 10/07/2025
Reviewed:
Jordan Rath
Jordan Rath

Jordan Rath is a professional finance writer at Eboost Partners with over seven years of experience in the commercial lending industry. A graduate of the University of Florida’s Warrington College of Business with a degree in Finance, he specializes in breaking down complex business lending topics to help entrepreneurs make smart, informed decisions.

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Fundamentals & Loan Types

Construction loans work differently than standard mortgages. This section covers the essential structures, including construction-to-permanent and one-time close loans, as well as government-backed programs that can help you build your home.

What Is a Construction-to-Permanent Loan? – Understand this popular loan type that converts to a traditional mortgage after construction.
One-Time Close Construction Loan – Learn how a single-close loan can simplify the financing process for your build.
Construction Loan Rates – Get insights into how interest rates are determined for construction financing.
FHA Construction Loan – Explore the features and benefits of a construction loan insured by the FHA.
USDA Construction Loan – Learn about this government-backed loan option for building a home in eligible rural areas.

Learn the Basics: Construction-to-Permanent Loans

Comparisons to Other Financing

Is a construction loan the right choice for your project? This section clarifies the key differences between construction financing and other common loans you might be considering, such as a standard mortgage or a home equity line of credit (HELOC).

Construction Loan vs. Mortgage – Understand the fundamental differences in purpose, structure, and qualification.
Construction Loan vs. HELOC – Learn why a construction loan is typically used for new builds instead of a HELOC.

See the Differences: Construction Loan vs. Mortgage

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Disclaimer: The information in this article is for educational and informational purposes only and does not constitute financial advice. All funding products, rates, and terms are provided by eBoost Partners and are subject to application, credit approval, and our current underwriting criteria. Rates and terms are subject to change without notice.

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