Build Your Dream Home
From breaking ground to picking up the keys, construction loans fund every phase of your build. Zach navigates draw schedules, builder approvals, and the construction-to-permanent conversion so you can focus on the home itself.
Financing a Build in Colorado
A construction loan is a short-term, high-interest loan that covers the cost of building a new home. Unlike a traditional mortgage where you receive a lump sum at closing, construction loan funds are disbursed in stages — called "draws" — as construction milestones are completed and inspected.
Construction-to-Permanent (One-Time Close)
The most popular option: a single loan that covers both the construction phase and then converts to a permanent mortgage upon completion. You close once, lock your permanent rate upfront, and avoid a second set of closing costs. During construction, you typically pay interest-only on funds drawn.
Two-Time Close (Stand-Alone Construction Loan)
A standalone construction loan that requires you to refinance into a permanent mortgage once the home is complete. More flexibility (you can lock a permanent rate when rates are favorable at the end of build), but you pay two sets of closing costs. This approach is sometimes required for custom builds with longer timelines.
The Draw Schedule
Construction loan funds are released in stages as your builder completes work — typically 5–7 draws over the course of the build. Each draw is inspected by a lender-appointed inspector before funds are released. During the construction phase, you pay interest only on the amount that's been drawn (not the full loan amount).
Colorado Construction Considerations
- Mountain builds may have seasonal work windows — factor in winter shutdowns
- Altitude and local building codes vary significantly between counties
- Septic system and well installation are common requirements in rural builds
- Builder must be approved by the lender (licensed, bonded, insured in Colorado)
- Appraisal is based on plans and specs ("subject to completion")
Typical Construction Loan Timeline
Application & Pre-Approval
Submit plans, specs, builder contract, and budget. 2–4 weeks.
Appraisal & Underwriting
Appraiser reviews plans and estimates future value. 3–6 weeks.
Construction Phase
Build progresses, draws released at each milestone. 6–18 months.
Conversion to Permanent Loan
Certificate of Occupancy issued, loan converts. Move in!
Why Build Rather Than Buy
Total Customization
Design every detail — floor plan, finishes, layout — to exactly fit your lifestyle and preferences.
Brand New Everything
New construction means new systems — HVAC, plumbing, electrical, roof — with manufacturer warranties in place.
Energy Efficiency
Build to current energy codes with modern insulation, windows, and HVAC — significantly lower utility costs.
Your Location
Build on land you already own — or purchase land and build — in exactly the community you want to live in.
One-Time Close Option
Lock your rate and close once — no second loan, no second set of closing costs when your build is complete.
Zach's Builder Network
Zach can connect you with lender-approved builders in your area — a valuable resource for first-time builders.