How to Qualify for a Construction Loan in Florida
A step-by-step path to construction loan approval in Florida: line up your builder and plans, prep your credit and down payment, and close before you break ground. Licensed FL mortgage broker NMLS# 1859012.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Qualifying for a construction loan means getting both you and your project ready. You assemble an approved builder, complete plans, and a fixed budget, then bring qualifying credit and your down payment. Here is the path from blueprint to closing and your first draw.
Line Up Your Builder and Plans
Start with a licensed, insured builder the lender can approve. Get a signed construction contract with a fixed price and a realistic timeline, since these anchor your loan.
Assemble complete plans, specifications, and a line-item budget. The more detailed and accurate these are, the smoother the appraisal and draw schedule will be.
Prep Your Credit and Down Payment
Check your credit and aim for a score of 680 or higher. Pay down revolving balances and avoid new debt while your project is underwritten.
Set aside roughly 20% of the project cost for the down payment, plus a contingency cushion. A buffer protects you if costs rise during the build.
Close and Start Building
The lender orders a completed-value appraisal, approves your builder, and sets the draw schedule. With a single-close construction-to-permanent loan, you lock the permanent rate at the same time.
After closing, funds release in stages as the builder hits milestones, and you pay interest only on what is drawn. When the home is finished, the loan converts to your permanent mortgage. Reach out to map your build, or compare against a renovation loan.
Construction Loan How to Qualify — FAQ
Line up a licensed, lender-approved builder with a signed fixed-price contract and detailed plans, then bring qualifying credit around 680 or higher and roughly 20% down. The lender orders a completed-value appraisal and sets a draw schedule for the build.
Yes. The lender approves your builder as part of underwriting, reviewing their license, insurance, and track record. A signed construction contract with a fixed price and timeline is required before the loan can close and the draw schedule can be set.
Funds release in stages called draws as the builder completes milestones, and you pay interest only on what is drawn. When the home is finished, a single-close loan converts automatically to your permanent mortgage with no second closing or fees.
Start Your Construction Loan Qualification
Single-close options · Build-to-permanent · Licensed FL mortgage broker NMLS# 1859012
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.