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Construction Loan Requirements — Florida 2026

Construction Loan Requirements in Florida

What you need for a construction loan in Florida: down payment, an approved builder, detailed plans and budget, and qualifying credit. Licensed FL mortgage broker NMLS# 1859012.

By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026

Requirements

Construction loans qualify both you and your project. Beyond the usual credit and income checks, the lender vets your builder, reviews detailed plans and a fixed budget, and appraises the home based on its completed value. Strong preparation here keeps the build on track.

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The Core Requirements

What You Need to Qualify

A construction loan underwrites the borrower and the project together. You bring qualifying credit and income; the project brings approved plans, a fixed budget, and a vetted builder.

Most Florida construction programs land in a similar range. Your exact terms depend on the lender, the project scope, and your credit.

Down payment — typically around 20% of project cost
Credit score — generally 680 or higher
Approved builder — licensed, insured, and lender-vetted
Plans and budget — detailed specs with a fixed cost breakdown
Completed-value appraisal — confirms the finished home's worth
Builder and Project Standards

Your Builder and Plans

The lender reviews your builder's license, insurance, and track record, then approves them for the project. A signed construction contract with a fixed price and timeline anchors the loan.

You also submit complete plans, specifications, and a line-item budget. The lender uses these to set the draw schedule, releasing funds as the builder completes each milestone.

How the Appraisal Works

Appraising a Home That Isn't Built

A construction appraisal values the home based on the approved plans and the finished result, not the empty lot. That completed value sets your maximum loan and your loan-to-value.

Because the loan is sized on the finished home, accurate plans and a realistic budget protect you from coming up short mid-build. Review the numbers with us before you break ground.

Frequently Asked Questions

Construction Loan RequirementsFAQ

What do I need to qualify for a construction loan in Florida?

You need qualifying credit, typically a score of 680 or higher, around 20% down, and a vetted project: an approved licensed builder, detailed plans, a fixed budget, and a signed construction contract. The home is appraised on its completed value.

Does my builder need to be approved for a construction loan?

Yes. The lender reviews your builder's license, insurance, and track record, then approves them for the project. A signed construction contract with a fixed price and timeline anchors the loan and the draw schedule.

How is a construction loan appraised before the home exists?

A construction appraisal values the home based on the approved plans and the finished result, not the empty lot. That completed value sets your maximum loan, so accurate plans and a realistic budget are essential to avoid coming up short mid-build.

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Construction Loans Florida (Overview)Construction Loan RatesHow to Qualify for a Construction LoanRenovation Loans FloridaAll Loan Programs

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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.