How to choose
There’s no single “best” construction loan lender — the best lender is the one whose guidelines and pricing fit your exact scenario. That’s why borrowers increasingly use an independent broker: instead of applying at five banks, one application at CDL Mortgage is priced across our entire wholesale lender panel.
Here’s what to look for when comparing construction loan lenders — and how we stack up on each point.
Wholesale pricing from multiple lenders — a broker compares many investors on every construction loan; a bank can only offer its own products.
A licensed loan officer, not a call center — one point of contact from pre-approval through closing.
Program depth — the best lender for your scenario may not be the best for your neighbor’s. Guideline flexibility matters.
Transparent fees — you should see exactly what you’re paying and what you’re getting for it, in writing.
Speed and communication — on-time closings win purchase contracts. Ask how often you’ll get status updates.
Local licensing — work with a lender licensed in your state who knows your county’s loan limits and closing customs.
Questions
Funds are disbursed in draws as construction milestones are completed, with interest-only payments on the drawn balance during the build. When the home is finished, the loan converts to (or is replaced by) a permanent mortgage.
A single-close loan that covers the build and automatically converts to your permanent mortgage when construction finishes — one application, one closing, one set of fees.
Typically 10-20% of the total project cost (land plus build). If you already own your lot, its equity can often count toward the down payment.
Most programs require a licensed, insured general contractor with a track record. Some owner-builder options exist for qualified borrowers — ask us about the requirements.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.