USDA One-Time Construction Loan
Rural-eligible primary residences with income and property location limits. Often 0% down for qualified borrowers.
0% down (eligible)
Area & income limits
Primary residence
🇺🇸 USA Audience • Updated:
Construction Loan Rates (USA) – Current Rates & Calculator
Instantly check current construction loan rates, compare USDA/VA/FHA programs, and estimate payments with our construction loan calculator.
Typical Range
~ 6.25% – 8.50% APR
Payment Phase
Interest-only during build
Conversion
One-time close → fixed
Programs
USDA • VA • FHA • Conventional
Rates can change daily. We approximate from mortgage benchmarks + typical construction spreads when live lender data isn't available.
Current Construction Loan Rates (USA)
Nationally, current construction loan rates typically price a bit higher than standard mortgages due to build-phase risk and draw administration. Table updates automatically if a free data source is available; otherwise you'll see reliable fallbacks.
| Product | Typical Rate (APR) | Down Payment | Notes |
|---|
Tip: Request quotes from 3–5 lenders on the same day for apples-to-apples comparison.
Construction Loan Calculator
Estimate interest-only payments during construction and your final mortgage after conversion.
- Enter loan amount, rate, draw schedule, and build months
- See total interest during build + projected monthly after perm
- Share results with your builder or lender
USDA, VA, and FHA: One-Time Close Options
VA One-Time Construction Loan
For eligible veterans/service members. No monthly MI, competitive rates, strict builder & property standards.
0% down (eligible)
No monthly MI
VA builder guidelines
FHA Construction-to-Permanent
Lower down payment & more flexible credit; requires mortgage insurance and property meets FHA criteria.
Down from 3.5%
More flexible credit
MI required
Construction Loan Interest Rates
Lenders price construction loans higher than standard mortgages due to build risk, draw administration, and interest-only phase. Pricing reflects credit score, DTI, loan-to-cost, reserves, builder credentials, project type, location, and lock period.
- During build: Interest-only on funds drawn (not the full commitment).
- After completion: Converts to a permanent mortgage (fixed/ARM) at your locked or market rate.
- Lock strategy: Some lenders let you float during build and lock before CO; others offer long-term OTC locks.
How Does a Construction Loan Work?
- Pre-approval: Qualify borrower + review plans, specs, and budget.
- Appraisal on plans: As-completed value estimated from plans.
- Draw schedule: Funds released in stages as work is completed.
- During build payments: Interest-only on the amount drawn.
- Completion & CO: Final inspection; loan converts to standard mortgage (one-time close).
Using a licensed, experienced builder can improve approval odds and pricing.
Construction Loan Requirements
- Licensed builder and signed construction contract
- Detailed plans, specs, budget, and permits
- Credit, income, assets verification; reserves/contingency
- Down payment (program-dependent: 0%–20%+)
- Appraisal based on plans; satisfactory LTV/LTC
How to Get a Construction Loan
1) Prep Your File
Finalize plans, budget, builder bid, timeline, and permits; gather W-2s/returns, paystubs, and asset statements.
2) Get Multiple Quotes
Request same-day quotes from 3–5 lenders. Compare rate, APR, fees, draw admin, lock terms, and OTC conversion.
3) Run the Numbers
Use our construction loan calculator to estimate build-phase interest and final payment.
FAQs
Do construction loan rates change during the build?
Depends on lock structure. Some float until conversion; others offer extended OTC locks with conditions/fees.
Is the calculator free to use?
Yes. The construction loan calculator is free and designed for U.S. borrowers.
Can I choose my own builder?
Usually yes, but lenders review licensing, experience, insurance, and financials. Owner-builder options are more limited.