Construction Loans in Utah

A construction loan funds a home build in stages (draws) as work completes, then converts or refinances into a standard mortgage when the home is finished. One-time-close construction-to-permanent loans combine both steps into a single closing — one approval, one set of closing costs, one rate lock.

Why borrowers choose this program

One-time-close options: single approval covers build and permanent mortgage
Draw schedules matched to your builder’s timeline
Interest-only payments during construction
Land purchase can be rolled into the loan

How construction financing works

The lender approves your total project cost — land, hard costs, contingency — and releases funds in draws as inspections confirm each phase. During the build you pay interest only on funds drawn. At completion, a one-time-close loan converts automatically to your permanent mortgage; a two-close structure refinances into one, letting you re-shop rates at completion.

Lenders will vet your builder (license, insurance, track record) alongside your finances. With Utah’s active custom-build market from Davis County to the Wasatch Back, we know which lenders move quickly on builder approvals.

Construction Loans FAQ

How much down do construction loans require?

Typically 10–20% of total project cost, though land you already own often counts toward it — sometimes covering the entire requirement.

One-time close or two-time close?

One-time close means one approval and one set of fees, with the rate set up front. Two-time close costs more in fees but lets you re-shop the permanent rate at completion. The better choice depends on where rates are headed during your build — we’ll talk it through.

Can I act as my own general contractor?

Some lenders allow owner-builders with documented experience, but options narrow and down payments rise. If you’re set on self-building, tell us early so we match you with the right lender.