The Gist
Construction Financing Gist
Build Plans, Budget, and Lender Fit
Understand draw schedules, contingency reserves, and construction-to-perm conversion — before the first shovel.
5 Blinks~12 minutesFree
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Blink 01 · 3 min
Construction-to-Perm vs. Stand-Alone: Two Paths to Build
One closing or two — and why it changes your cost structure
“Construction financing comes in two structures: construction-to-permanent (one closing that converts to a mortgage) and stand-alone construction (a separate construction loan that requires a second closing for permanent financing). Each has distinct cost, risk, and flexibility profiles.”
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Blink 02 · 3 min
Draw Schedules: How Construction Loans Actually Work
You don't get the money all at once — here's the process
“Construction loans disburse funds in staged draws tied to completed construction milestones. You only pay interest on the amount drawn — not the full loan amount — which keeps costs manageable during the build phase.”
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Blink 03 · 2 min
Contingency Reserves: The Budget Buffer You Can't Skip
Why 10-15% contingency isn't conservative — it's realistic
“Construction projects virtually always encounter unexpected costs — material price changes, site conditions, design modifications, and code requirements. A 10-15% contingency reserve isn't padding — it's essential project insurance that most lenders require.”
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E
EARL · Mortgage Butler
Ready to turn these insights into your actual numbers
Educational content only. Not financial advice. Rates and figures are illustrative.
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