New Home Financing With Houzd Mortgage

New Construction Loans
in Utah

Buying from a builder or planning a custom home? Our Houzd Mortgage team will help you compare financing around your project, budget, and timeline.

Talk to a Loan Officer Start Your Application

The Basics

How does new construction financing work?

If a builder finances construction, you typically use a purchase mortgage when the completed home is ready to close.

If you finance your own build, a construction loan usually releases funds in stages. Permanent financing follows through conversion or a separately approved mortgage.

Start with the financing before finalizing your plans.

Bring us your builder contract, lot information, or project budget. We'll help identify the next steps.

Why Plan Early?

Build a financing plan with room for the details.

Work through the numbers before committing.

Match Your Project

Compare financing for a builder purchase or custom construction.

Review the Full Budget

Include land, construction, upgrades, fees, and reserves.

Discuss Land Equity

If you own the lot, ask how eligible equity may affect financing.

Compare Loan Structures

Review one-time and two-closing approaches where available.

Plan Rate-Lock Timing

Understand lock periods, expiration dates, and extension costs.

Prepare for Move-In

Review closing and conversion requirements before completion.

Financing Paths

Which approach fits your new home?

Your contract, land ownership, and construction budget help determine the options.

We'll confirm program availability for your specific project.

Purchase

Buy From a Builder

Your mortgage funds the completed purchase when the builder carries construction financing.

One Close

Construction-to-Permanent

One closing establishes both phases, with conversion governed by the loan agreement.

Two Closes

Separate Financing

A construction loan is followed by a separately approved permanent mortgage.

Land

Review Your Lot

Lot ownership, existing liens, and land value affect the transaction.

During the Build

How do construction draws and payments work?

Construction funds are typically released in draws as work progresses. Inspections and documentation generally precede disbursement.

Many programs require interest-only payments on funds advanced during construction. Terms vary, and interest-only payments do not reduce principal.

Plan for changes and delays.

Review contingency funds, change orders, and extension terms. A larger loan is not automatic, so overruns may require your own funds.

Local Mortgage Guidance

Financing Your New Home in Utah

Based in Draper, our Houzd Mortgage team helps borrowers across Utah, including Salt Lake, Utah, Davis, and Weber counties.

Whether you're considering a builder's community or planning a home on your own lot, bring us your project details. We'll discuss your budget and timeline.

Already have a lender proposal from your builder? We can help compare the written offer and incentive terms.

Meet our Houzd Mortgage loan officers

Planning Your Project

Bring us your plans and questions.

Let's discuss:

Your builder or purchase contract.

Your lot and any existing land loan.

Your estimated construction budget.

Your cash available and reserve goals.

Your expected completion date.

Your current home and moving timeline.

The Process

From the first conversation to your next step.

Our Houzd Mortgage team will help organize the financing details.

Discuss Your Project

Share your location, builder, budget, and timeline.

Compare Financing

Review available structures, payments, and requirements.

Complete Approval

Submit financial and project documentation.

Follow Your Loan Plan

Complete the applicable closing and conversion steps.

Questions

Utah New Construction Loan FAQ

Do I need a construction loan to buy a new home in Utah?

Not always. When the builder funds construction, you typically use a purchase mortgage at completion. Financing your own build usually requires a different structure.

What is a construction-to-permanent loan?

It finances construction and the completed home. A single-closing loan establishes both phases upfront. A two-closing approach uses separate construction and permanent loan closings.

How much down payment will I need?

Requirements depend on the program, loan amount, project, and qualifications. We'll confirm required cash, reserves, and any eligible land equity.

Can I use land I already own?

Potentially. Lenders review ownership, land value, existing liens, and program rules. We'll determine how your lot affects the financing.

Does the lender need to approve my builder?

Construction lenders typically review the builder, contract, plans, specifications, budget, and schedule. Confirm requirements before making commitments.

Can I lock a rate before the home is finished?

Some programs offer extended locks. Review duration, costs, extension rules, and which financing phase is covered. A rate quote alone is not a lock.

What happens if construction runs late?

An extension may require approval and fees. Delays can affect rate locks and permanent financing. Review these terms before closing.

What happens when construction is complete?

A single-closing loan converts under its agreement after required conditions are met. Separate construction financing must be paid off, often through a new permanent mortgage requiring approval.

Can I compare my builder's preferred lender offer?

Yes. Bring the written offer, Loan Estimate if available, and incentive terms. We'll compare rates, points, fees, credits, and total costs.

How do I get started?

Talk to a Houzd Mortgage loan officer about your new home plans. We'll explain the information needed for an initial review.

Your Utah Home.
Build Your Plan First.

Let's review your project and compare financing for your next move.