2 men cutting 2x4 building a house

Nichols Home Lending: Building Your Dreams, Brick by Brick

At Nichols Home Lending, we understand the excitement and challenges that come with building or renovating a property. That’s why we offer construction loans specifically designed to meet your unique needs and fuel your vision.

Construction Loans for Every Build

A construction loan is a short-term mortgage that will finance the costs of building or renovating your home. Construction loans include land purchases, building plans, permits, labor, and materials.

Whether you’re a seasoned investor, a first-time homebuilder, or a contractor looking to expand your portfolio, a Nichols Home Lending construction loan can help you get started.

Flexible Solutions, Streamlined Process

Our construction loans go beyond traditional financing limitations. 

Our loans allow for:

  • Lower credit score requirements compared to standard mortgages.
  • Higher debt-to-income (DTI) ratios to accommodate the realities of construction projects.
  • Faster pre-qualification process so you can break ground sooner.

Construction Loan Requirements

  • Loan-to-Value ratio on the property above 70-75%
  • Bank statements and credit score information
  • Project plan including your estimated budget and timeline
  • An appraisal of the property to assess its potential value.
  • Relevant experience with real estate project management 

Collaboration With Your Construction

We believe in clear communication and a collaborative approach. 

Here’s what you can expect when you choose Nichols Home Lending for your construction loan:

  • Transparent qualification process: We’ll walk you through the steps and requirements upfront.
  • Dedicated loan officer: You’ll have a single point of contact throughout the entire process.
  • Flexible financing options: We’ll tailor a loan package that fits your specific project and budget.
  • Streamlined documentation: We’ll minimize paperwork while ensuring everything is in order.
  • Efficient closing process: Get the funds you need quickly to keep your project moving forward.

Let’s Build Something Great Together!

Contact Nichols Home Lending today to discuss your construction loan options. We’re here to answer your questions and guide you through every step of the process, from initial planning to the final handshake. Together, let’s turn your vision into a reality.

Construction Loan FAQs

Is a construction loan easier to get than a home loan?

Approval for construction loans depends on the individual borrower’s financial situation and varies by lender. Construction loans typically have equally or slightly higher requirements for credit scores and credit history than conventional loans. 

What kind of credit score do you need for a construction loan?

Construction loans typically have equally or slightly higher requirements for credit scores and credit history than conventional loans. Think 680 or higher.

What are the pros and cons of construction loans?

Construction loans allow for financing of the land purchase, and building costs, and can often convert into a permanent mortgage once the project is completed. These loans make it easy to build and customize the home of your dreams with potentially fewer obstacles than a conventional mortgage.
Downsides of construction loans may include a quick repayment period, varying interest rates, and may be affected by delays in the construction timeline.