video1.0<iframe src="https://www.loom.com/embed/e6b0868ead5444edbdc7d0ea38ff05e4" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/e6b0868ead5444edbdc7d0ea38ff05e4-e9c164bbe3a3ca76.gif45.75In this video, I explain what a construction loan is and how it can help you finance the building of your new home. A construction loan is a short-term loan with higher interest rates, requiring a down payment of 20 to 30%, a good credit score of 680 or higher, and a debt-to-income ratio below 45%. You'll need a qualified builder and detailed plans to qualify. During construction, you'll make interest-only payments, and you have the option to convert to a permanent mortgage once the home is completed. If you're considering building a custom home, I encourage you to explore this financing option.