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From your first set of plans to the final walkthrough, we simplify the construction loan process so you can focus on watching your home come to life. At ProFed, we fund your build from the ground up with flexible options and a friendly local team.

Alex Makridakis | Vice President, Mortgage Services

How Do Construction Loans Work?

Construction loans normally have very short periods, usually 6-12 months, before a modification converts them to the fixed rate principal and interest. Get preapproved, lock in an interest rate, and feel confident every step of the way with our local mortgage experts by your side.

Enjoy the flexibility of interest-only payments during the construction phase and the option of bridge and land loans to support you through the home-building process.

With our construction loan, we offer one-time closing costs for borrowers, meaning they can close the construction loan and permanent financing of the new home at the same time. Keep in mind that it’s typical for lenders to be more involved with a construction loan compared to a mortgage loan due to the review of important documents beforehand, which are based on the approval for the loan amount.

Our online application process is easy and our requirements are straightforward. Bring your dream home to life today!

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Construction Loan Benefits & Requirements

Benefits

Requirements

Fixed or Adjustable-Rate Options

One-time closing

Interest-only payments during construction phase

ProFed underwriting and servicing

Ask us about our Land only and Bridge loans!

7-month construction phase, can be extended upon review

Minimum 5% down payment

Subject to builder and contract review

Subject to credit, income, and asset review

Land Only Benefits & Requirements

Benefits

15-year fixed rate term - contact us for rates

Land may be used for future construction loan, but not required

Loan purpose can be to purchase or refinance

ProFed underwriting and servicing

Minimum 25% down payment required

Subject to credit, income, and asset review

Home Loan Rates

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Loan Product Maximum Loan to Value (LTV) Minimum Loan Term Rate as low as APR* as low as
Conventional Mortgage Up to 100% LTV No Minimum 10, 15, 20, 30 Year - Fixed Rate Click here for current rates
First-Time Homebuyer Up to 97% LTV No Minimum Up to 30 years - Fixed Rate Click here for current rates
USDA Loan Up to 100% LTV, 101% with Guarantee USDA Fee No Minimum 30-year Fixed Term Contact us for current rates
ARM Loan Up to 100% LTV No Minimum 5/1 & 7/1 - Variable Rate Click here for current rates
Construction Loan Up to 95% LTV No Minimum Flexible Terms - Fixed Rate Click here for current rates
Land Loan Up to 75% LTV No Minimum 15-year Fixed Contact us for current rates
$475 Refi Up to 80% LTV No Minimum Up to 180 Months - Fixed Rate Click here for current rates
Renovation Loan Up to 97% LTV No Minimum Up to 30-year Fixed Rate Contact us for current rates
Home Equity Loan Up to 80% LTV $10,000 12 - 120 Months - Fixed Rate 7.490% 7.490%**
Home Equity Loan Up to 81 - 90% LTV $25,000 121 - 180 Months - Fixed Rate 7.740% 7.740%***
Home Equity Line of Credit Up to 80% LTV $10,000 120 Months - Variable Rate 6.750% 6.750%****

Membership at ProFed is required. *The annual percentage rate (APR) listed are our best rates. Home Equity Rates were last updated on 2/11/26. Your rate may vary depending on your credit score. **Annual Percentage Rate is based on a loan amount of $10,000 and a term of 120 months. ***Annual Percentage Rate is based on a loan amount of $25,000 and a term of 180 months. ****The Rate for the Home Equity Line of Credit is based on prime (index), as published in the Wall Street Journal on the last day of the month, plus a margin. The Annual Percentage Rate is based on a $10,000 line of credit.

The Process Of A Construction Loan Vs. A Mortgage Loan

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Benefits And Costs Of Owning A Home

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Frequently Asked Questions

A ProFed construction loan helps you finance the cost of building your dream home—from the ground up. Funds are released in stages as your home is built, and when construction is complete, your loan can easily convert into a permanent mortgage.

ProFed offers a convenient one-time close construction-to-permanent loan, meaning you’ll only close once and avoid paying multiple sets of closing costs. It’s one simple process—from blueprint to move-in day.

You can use a ProFed construction loan to build a new home, purchase land, or make major renovations. It’s designed for members who want flexibility and control over their homebuilding process.

With ProFed, you’ll make interest-only payments during the construction phase—only on the funds that have been disbursed. Once your home is complete, your loan can convert into a regular mortgage with predictable monthly payments.

You’ll need detailed construction plans, a qualified builder, a solid credit history, and a down payment. ProFed’s local loan originators will guide you through every step to make sure your project starts off strong.

With ProFed, you’ll enjoy personalized service, local decision-making, competitive rates, and one-time closing convenience. Our team works directly with your builder to keep the process smooth from start to finish.

Your loan amount depends on factors like your home’s appraised value, construction budget, and credit qualifications. A ProFed loan officer can help you determine how much financing you qualify for.

From the time of contract to the time of close, it will take about 35 days for your construction loan to get approved, depending on your project details. ProFed’s local lending team helps streamline the process for a faster turnaround.

Yes! Once your home is complete, you can refinance your construction loan through ProFed for better rates, lower payments, or to access your home’s new equity.

Start by talking with a local ProFed mortgage expert or applying online. We’ll review your plans, help you understand your options, and guide you through financing your dream home—right here in your community.