Construction Loans in Nevada

Construction-to-permanent loans combine construction financing and permanent mortgage into one loan with one closing. Traditional construction loans require two separate loans and two closings—one for construction and another to convert to a mortgage. Construction-to-permanent saves time, money, and locks in your rate upfront.

Some lenders allow owner-builder construction loans, but requirements are stricter. You'll need construction experience, detailed plans, and higher down payments. Most borrowers work with licensed general contractors to ensure smooth loan approval and project completion.

You're responsible for covering cost overruns out of pocket. This is why accurate cost estimates and contingency buffers are critical. Most lenders recommend adding 10-15% contingency to your construction budget for unexpected expenses.

You don't need to own the land outright, but you must have it under contract. If you own the land free and clear, its equity can be used toward your down payment requirement. If you're purchasing land simultaneously, it will be included in the construction loan.

Construction loan approval typically takes 45-60 days due to the additional documentation required (plans, builder contracts, cost breakdowns, etc.). Starting the pre-approval process early helps ensure you're ready when you find the perfect lot or builder.