Does hurricane season pause construction draws?

Draws continue year-round; named-storm windows can pause site work and binder issuance briefly. Experienced Florida builders schedule around it — one more reason local track record matters.

Are impact windows required or optional in my budget?

Code requires opening protection in wind-borne debris regions — impact glazing or shutters. In HVHZ counties (Miami-Dade, Broward) standards are strictest. Budget accordingly; insurers reward it.

Can I build in a flood zone at all?

Routinely — elevation to or above base flood elevation is the requirement, priced into foundations. The elevation certificate then sets your flood premium.

Construction Loans in Florida

Building in Florida is a financing puzzle with known pieces: the lot, the builder, the draws, and the insurance. Put them in the right order and the loan is the easy part.

The landscape

How Floridians fund a build

Tear-downs in the older neighborhoods. New homes on infill lots. Coastal rebuilds lifted to modern code. Florida construction lending covers all of it.

The favorite tool is the one-time-close loan. You close once, the money funds the build in draws, and the loan converts to a normal mortgage at completion.

One closing means one set of costs and one approval. For most owner builds, that simplicity wins.

Draws

Money released as work completes

The budget gets split into stages: foundation, frame, dry-in, mechanicals, finishes. After each stage, an inspection confirms the work and the next draw releases.

You pay interest only on drawn funds during the build. The full payment starts when the home does.

Florida particulars

Insurance, wind, and water

Insurance belongs at the start of a Florida build, not the end. Wind coverage, flood zones, and elevation all shape both the budget and the loan.

The good news: new construction earns the best insurance treatment. Modern roofs, impact openings, and current code often price far below the older home next door.

Coastal lots add surveys and elevation certificates to the checklist. None of it is exotic. All of it is cheaper handled early.

Qualifying

What the file looks like

You qualify on the completed value and your finances, like a normal jumbo — credit from around 700, down payment or land equity, and reserves.

The project qualifies too: a licensed and insured builder, a complete budget with contingency, and plans the appraiser can value. For limits, programs, and Florida closing-cost taxes in one place, read the complete Florida jumbo loan guide.

Timeline

A realistic Florida calendar

Plan the sequence honestly. Design and permits set the front end, and county pace varies. The build itself commonly runs eight to fourteen months for a custom home.

The loan should match that reality. Construction periods are set with cushion, extensions exist for weather and permits, and the conversion waits for the certificate of occupancy — not before.

Permitting is the wild card. Some Florida counties clear plans in weeks; coastal and historic districts can take months. Ask the builder for the real permit timeline in your county before you set a closing date, and build slack into the rate-lock plan so a slow desk does not cost you money.

Choosing the builder

The decision that decides the rest

Lenders approve builders, not just borrowers. A licensed, insured builder with completed projects near your size makes every other approval easier.

Interview like an underwriter: references, current jobs, and how change orders get handled. The builder relationship is the real foundation of the build.

Beyond owner builds

Investor and spec structures

Building to rent? Business-purpose construction money funds the build, and a DSCR loan refinances it on the property’s income. Building to sell? Spec financing prices the project on its exit comps.

Different purpose, different loan — same discipline of budget, builder, and draws.

FAQ

Quick answers

Can my land count as the down payment?

Yes. Lot equity commonly serves as part or all of the required equity.

How long do Florida builds take to finance?

Approval runs like a jumbo purchase. The build sets the calendar; the loan simply follows the draws.

What happens at completion?

On a one-time-close, the loan converts automatically to its permanent terms. No second closing, no second set of fees.

Can I act as my own builder?

Owner-builder programs exist but are strict. Most files run smoother with a licensed general contractor.

Talk through your project

Tell us the site, the budget, and the plan. A licensed professional maps the structure that fits and what it asks of you.

See If You Qualify →