Complete New Construction Home Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Buying a new construction home means purchasing a newly built house, often from a builder before or during construction. Financing differs from buying an existing home, with builder incentives and timing playing a big role in Florida.
This guide explains construction-to-permanent loans, builder financing, and what to watch for. Mortgage Capital, NMLS# 1859012, finances new construction purchases across Florida.
Buying from a builder
Most new construction buyers purchase a completed or nearly completed home from a builder, using a standard mortgage. The builder often offers incentives to use their preferred lender.
Those incentives can be real savings, but compare the builder lender's full terms against an independent quote.
Construction-to-permanent loans
If you are building a custom home, a construction-to-permanent loan funds the build in draws and then converts to a regular mortgage when the home is complete, with a single closing.
This avoids two sets of closing costs and locks your permanent financing up front.
Builder incentives and lender choice
Builders frequently offer rate buydowns, closing cost credits, or upgrades if you use their lender. These can be valuable, but the comparison is the rate and total cost, not just the headline incentive.
You are usually free to use any lender; we help you weigh the builder's offer against ours.
New construction considerations
Lock timing matters, since construction can run long. Extended rate locks protect you if completion slips. Confirm the appraisal and a final walkthrough before closing.
In Florida, verify the builder's reputation and that the home meets current wind and building codes.
Closing on new construction in Florida
At completion, the home is appraised, you do a walkthrough to confirm finishes, and you close like any purchase. New homes often have lower insurance costs thanks to modern construction.
We coordinate the timeline so financing and the builder's schedule align.
Complete New Construction Home Guide: step by step
Frequently asked questions
How is financing new construction different?
You may use a standard mortgage on a finished home or a construction-to-permanent loan for a custom build, with builder incentives common.
What is a construction-to-permanent loan?
A loan that funds the build in draws and converts to a regular mortgage at completion, with a single closing.
Do I have to use the builder's lender?
Usually no. Builders offer incentives to use theirs, but you can compare and choose an independent lender.
Are builder incentives worth it?
They can be, but compare the full rate and total cost, not just the headline credit or buydown.
How does the rate lock work for new construction?
Use an extended lock to cover potential construction delays, so a longer build does not cost you the rate.
Is insurance cheaper on new homes in Florida?
Often yes, because modern construction and a new roof meet current wind codes, lowering premiums.
Do I get a walkthrough on new construction?
Yes. Before closing you confirm the finishes and that the home matches the agreed specifications.
Does a new home need an appraisal?
Yes. The completed home is appraised to confirm value before the loan closes.