New Construction Home Loans in Utah
Build your dream home with expert construction financing. One-time close convenience, builder partnerships, and seamless coordination from start to finish.
Why Finance New Construction in Utah?
Utah's booming construction market offers incredible opportunities to build exactly what you want.
Build Your Dream Home
Customize everything—floor plan, finishes, fixtures, and features. Get exactly what you want instead of compromising on existing homes.
Modern Efficiency
New homes feature the latest energy-efficient systems, building codes, and technology, saving money on utilities and maintenance.
Builder Incentives
Builders often offer closing cost credits, rate buy-downs, or upgrade packages, especially when financing with approved lenders.
Warranty Protection
New construction comes with builder warranties (typically 1-10 years), protecting you from major defects and structural issues.
Growing Utah Markets
Utah County, Washington County, and Davis County are experiencing massive growth with new master-planned communities and developments.
Equity Potential
In growing markets, new construction can appreciate significantly during the build period, giving you instant equity at closing.
Construction Loan Options
Different loan types for different construction scenarios. I'll help you choose the best fit.
Construction-to-Permanent Loan (One-Time Close)
The most popular option. One application, one closing, one set of fees. The loan automatically converts from construction to permanent mortgage when building is complete.
Pay closing costs once, not twice
Lock your rate at the beginning, protected from increases
One application, less paperwork, easier qualification
Primary residences, new builds, turnkey construction
Typical Terms: 10-20% down, 680+ credit score, construction timeline up to 12 months
Two-Time Close Construction Loan
Separate construction and permanent loans. More flexibility but requires two closings, two sets of fees, and two applications.
One for construction, another when complete
Lock rate at second closing (risk if rates increase)
Two applications, two underwriting processes
Unique projects, land already owned, extended timelines
Typical Terms: 15-25% down, 680+ credit score, shorter construction periods (6-9 months)
Spec Home Financing
Purchasing a home that's currently under construction by a builder. Simpler than full construction loans since the builder handles the build financing.
Finance like a regular home purchase
Builder has already secured construction financing
Often 3-10% down depending on loan type
Buyers wanting new construction simplicity
Available Programs: FHA, VA, Conventional, USDA—all can be used for spec homes
Land Purchase + Construction Combo
Need to buy land first? Combine land purchase and construction financing into one loan package for seamless coordination.
Finance both land and construction together
Land value counts toward down payment
Typically 20-25% down, stronger credit needed
Building on raw land or custom lots
Important: Land must be buildable with utilities accessible or planned
Not sure which option fits your situation? I'll help you choose the right construction loan structure.
Discuss Your Project: (801) 555-1234New Construction Timeline
Here's what to expect from pre-approval through move-in day.
Pre-Approval & Budget Planning
Week 1-2Get pre-approved to know your exact budget. Determine how much you can afford for land, construction, and total costs including reserves.
- Review financial documents and get pre-approved
- Establish construction budget with 10-15% contingency
- Identify builders and review their reputations
Lot Selection & Builder Contract
Week 3-6Choose your lot/land, select a builder, and finalize plans. Sign builder contract with detailed construction specifications.
- Secure lot or land purchase
- Sign builder contract with detailed specs and timeline
- Finalize floor plans and upgrades
Loan Approval & Closing
Week 7-10Submit final loan application with builder contract and construction plans. Complete underwriting and close on your construction loan.
- Submit application with builder contract and plans
- Appraisal ordered (based on plans and comparable sales)
- Close on construction loan and make down payment
Construction Phase & Draw Schedule
Month 4-16Builder constructs your home in stages. Funds are released in draws after inspections confirm work completion at each stage.
- Builder requests draws as work reaches milestones
- I coordinate inspections to verify work before releasing funds
- You pay interest-only on funds disbursed during construction
Final Inspection & Conversion
Final MonthConstruction complete! Final inspection, certificate of occupancy issued, and loan converts to permanent mortgage (for one-time close loans).
- Final walkthrough with builder
- Certificate of occupancy issued by county
- Loan converts to permanent mortgage—move in!
Tom's Insight
The construction timeline varies widely based on home size, complexity, weather, and builder schedule. Most Utah homes take 6-12 months to build. I coordinate with your builder throughout the process to ensure smooth draw releases and address any issues promptly. Communication is key!
Popular Utah New Construction Markets
Utah's construction boom offers opportunities across the Wasatch Front and Southern Utah.
Utah County (Provo, Orem, Lehi, Eagle Mountain)
Explosive growth driven by tech industry. Master-planned communities, new schools, and modern amenities attract families and young professionals.
- Price Range: $400K - $800K+
- Popular Areas: Vineyard, Saratoga Springs, Eagle Mountain
- Builders: Ivory Homes, Garbett Homes, DR Horton
Salt Lake County (West Valley, South Jordan, Draper)
Central location with access to employment, entertainment, and I-15 corridor. Limited land makes new construction competitive.
- Price Range: $500K - $1M+
- Popular Areas: Daybreak, Herriman, Riverton
- Builders: Fieldstone Homes, Ivory Homes, Richmond American
Davis/Weber Counties (Ogden, Layton, Syracuse, Farmington)
Northern Wasatch Front with Hill Air Force Base, growing downtown Ogden, and outdoor recreation access. More affordable than SLC.
- Price Range: $350K - $650K
- Popular Areas: Syracuse, West Haven, Roy, Farmington
- Builders: Comstock Homes, Woodside Homes, Perry Homes
Washington County (St. George, Hurricane, Santa Clara)
Southern Utah's fastest-growing region. Mild winters, stunning red rock scenery, and retirement/vacation home appeal drive demand.
- Price Range: $400K - $900K+
- Popular Areas: St. George, Hurricane, Ivins
- Builders: Arive Homes, Stone Cliff Custom, Visionary Homes
Builder Financing: What You Should Know
Understanding builder incentives and relationships can save you thousands.
Builder Preferred Lenders
Many builders have "preferred lender" programs offering incentives like closing cost credits, rate buy-downs, or upgrade packages.
Pros:
- $5K-$20K in closing cost credits or rate buy-downs
- Streamlined communication with builder
- Potential upgrade packages included
Cons:
- •May have higher rates or fees offsetting incentives
- •Less personalized service (high volume operations)
- •Limited flexibility on loan programs or timing
Using an Outside Lender (Like Me)
You're never required to use the builder's preferred lender. Working with me gives you personalized service and potentially better terms.
Pros:
- Personalized service and dedicated attention
- Often competitive or better rates
- Can sometimes negotiate similar builder incentives
- More flexibility on loan programs and timing
Cons:
- •May not qualify for full builder incentive packages
- •Requires separate coordination between builder and lender
My Recommendation
Always compare both options. Get quotes from both the builder's preferred lender and me. Compare the total cost—not just the incentive dollar amount. Sometimes the builder's incentive is worth it; other times, my rates and fees save you more in the long run. I work with builders regularly and can often negotiate similar incentives while providing better overall value and personal attention. Let's run the numbers together!
Construction Loan Requirements
What you'll need to qualify for new construction financing.
Credit Score: 680+ (Recommended)
While some programs accept 620-640, construction loans work best with 680+ scores. Higher scores get better rates and terms. I'll review your credit and suggest improvements if needed.
Down Payment: 10-20%
Most construction loans require 10-20% down. If you already own the land, its appraised value can count toward your down payment, reducing cash needed. Spec home purchases may qualify for lower down payments (3-10%) depending on loan type.
Income & Debt-to-Income Ratio
Stable income history (2+ years) and debt-to-income ratio under 43-45%. Construction loans scrutinize income more carefully since there's no completed property as collateral initially.
Construction Plans & Builder Contract
Detailed architectural plans, itemized construction budget, and signed builder contract with timeline. Builder must be licensed and insured with proven track record.
Cash Reserves: 6-12 Months
Lenders want to see 6-12 months of mortgage payment reserves in liquid assets after closing. This protects against construction delays or cost overruns.
Construction Appraisal
Special "subject-to-completion" appraisal based on construction plans and comparable completed sales. Appraiser estimates the home's value when finished.
New Construction Loan Questions
Common questions about financing new construction in Utah.
Frequently Asked Questions
A construction loan covers the cost of building the home during construction, with funds released in stages (draws) as work progresses. A traditional mortgage is for completed homes. Construction-to-permanent loans combine both into one closing, converting automatically to a regular mortgage when construction is complete.
Construction loans typically require 10-20% down payment, which is higher than many traditional mortgages. However, if you own the land free and clear, its appraised value can often count toward your down payment requirement, reducing the cash needed.
The loan approval process takes 2-3 weeks. Construction timelines vary widely (4-12 months typically), depending on home size, complexity, weather, and builder schedule. I coordinate with your builder to ensure smooth draw requests and inspections throughout the build.
Builder preferred lenders can offer incentives like closing cost credits or rate buy-downs. However, you're not required to use them. I often work with builders and can sometimes negotiate similar incentives while providing personalized service. It's worth comparing both options.
If construction costs increase, you may need to cover the difference out of pocket or request a loan modification if you qualify. This is why accurate budgeting and contingency reserves (usually 10-15% of construction costs) are crucial. I help ensure your budget is realistic from the start.
With a construction-to-permanent loan, you typically lock your rate at the beginning of construction, protecting you from rate increases during the 4-12 month build period. Some programs offer float-down options if rates decrease. I'll explain all rate lock strategies for your situation.
Ready to Build Your Dream Home?
Let's discuss your construction plans and find the right financing solution. I'll coordinate with your builder every step of the way.
NMLS #250688 | Licensed in Utah | 15+ Years Experience