Construction Loan Rates in Florida
What drives construction loan rates for Florida builders and buyers, how the build phase is priced, and when to lock the permanent rate. Licensed FL mortgage broker NMLS# 1859012.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Construction loan rates in Florida have two layers: the rate you pay while the home is being built and the permanent mortgage rate after it converts. A single-close construction-to-permanent loan lets you lock both in one transaction. Your number depends on credit, the project, and timing.
What Affects Your Construction Rate?
Construction pricing reflects the added risk of lending against a home that does not exist yet. The lender looks at your credit, the project budget, the builder, and the completed appraised value.
During the build, you typically pay interest only on the funds drawn so far. After completion, the loan converts to a permanent mortgage at the rate you locked, so the permanent rate is the one that follows you for decades.
Sample Permanent Payment by Rate
The table shows the permanent principal and interest on a $400,000 construction-to-permanent loan after the home is built. During construction you pay interest only on drawn funds, so your payment ramps up as the build progresses. These are illustrations only, not a rate quote.
| Sample Rate | Monthly P&I | Interest Over 30 Yrs |
|---|---|---|
| 6.625% | $2,561 | $522,000 |
| 7.125% | $2,695 | $570,000 |
| 7.625% | $2,832 | $620,000 |
| 8.125% | $2,972 | $670,000 |
Illustrative only. Based on a $400,000 permanent loan over 30 years; excludes property taxes, insurance, HOA dues, and the interest-only construction phase. Your actual rate and payment will differ. Call (561) 300-0380 for a personalized quote.
How Draws Shape Your Cost
During construction, the lender releases funds in stages called draws as the builder completes milestones. You pay interest only on the amount drawn so far, so early payments are small and grow as the home takes shape.
When the home is finished, a single-close loan converts to your permanent mortgage automatically, with no second closing or second set of fees. Estimate your finished payment on our mortgage payment calculator.
When to Lock Your Permanent Rate
A single-close construction-to-permanent loan can lock your permanent rate up front, protecting you from rate increases during a build that may take several months to a year.
Watch the broader market with our Florida mortgage rates page, and ask us about extended lock and float-down options suited to construction timelines.
Construction Loan Rates — FAQ
The construction phase usually carries a higher rate because the lender is funding a home that is not built yet. The permanent rate after conversion prices much like a conventional mortgage. A single-close loan lets you lock the permanent rate up front.
During the build, you typically pay interest only on the funds drawn so far. The lender releases money in stages as the builder hits milestones, so early payments are small and grow as the home progresses. Full principal and interest begins after conversion.
With a single-close construction-to-permanent loan, you can lock the permanent rate up front, which protects you from increases during a build that may run several months to a year. Ask about extended lock and float-down options suited to construction timelines.
Get Your Construction Loan Rate Quote
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.