How to Secure New Construction Loans in Florida

Start with a realistic budget, not a brochure number

Florida construction loans are underwritten against a detailed budget, not a rough per-square-foot guess. Lenders want to see land status, soft costs, hard costs, contingency, and a credible timeline before they release the first draw.

If you are building on your lot, expect the bank to review your builder's license, insurance, and track record. Custom work in Miami-Dade, Broward, or Palm Beach often carries higher finish allowances than tract production, and your loan package should reflect that.

Construction-to-permanent vs. stand-alone construction

Many owners use a construction-to-permanent loan that converts after certificate of occupancy. Others take a short-term construction loan and refinance into a permanent mortgage. The right structure depends on how long you plan to hold the property and how much equity you are putting in upfront.

• Construction-to-permanent: one closing, rate lock strategy varies by lender
• Stand-alone construction: more flexibility, two closings, often higher fees
• HELOC or cash-out: sometimes used for smaller additions, rarely for full ground-up custom

What lenders review in your builder package

Expect requests for a signed contract or proposal, permit status, insurance certificates, and a draw schedule tied to inspections. Banks release funds in stages. If your builder cannot document completed milestones, draws stall and the project stalls with them.

Draw schedules and inspections

Typical draws align with slab, framing, dry-in, MEP rough-in, and final. An inspector or bank agent verifies work before each release. Build slack into your personal liquidity for items that sit outside the draw cycle, like selections paid directly to vendors or allowance overages approved mid-project.