Construction Loans
Construction Home Loans in Cadiz KY
Ready to build your dream home from the ground up? At Quality Home Mortgage, we offer construction home loans that provide the flexibility and funding you need to bring your vision to life. Whether you’re building on your own land or working with a local builder, we’re here to guide you through every phase — from blueprints to move-in day.

Based in Cadiz, KY, we help families across Western Kentucky finance new home construction with reliable, personalized lending solutions.
What Is a Construction Loan?
A construction loan is a short-term mortgage that covers the cost of building a new home. Funds are released in stages (called “draws”) as each phase of construction is completed. Once the home is built, the loan typically converts into a traditional long-term mortgage — often called a construction-to-permanent loan.
Financing That Grows with Your Project
Benefits of Construction Loans
- Finance land, materials, labor, and permits in one loan
- Interest-only payments during construction (you only pay on what’s drawn)
- Converts to a permanent mortgage once the home is complete
- Choose your own builder and design
- Customizable loan terms and rate options
With our help, you can break ground on your dream home with confidence — and financing that fits your timeline.
Who Should Consider a Construction Loan?
Construction loans are ideal for:
- Homeowners building on privately owned land
- Buyers purchasing land and building simultaneously
- Those working with custom or semi-custom home builders
- Borrowers who want a one-time close loan with simplified underwriting
Not sure if you're eligible? We'll walk you through the requirements and options.
Construction Loan Requirements
- Minimum credit score of 620–680 (depending on loan type)
- Verified income and stable employment history
- Detailed building plans and cost breakdown from a licensed builder
- Down payment typically 5%–20% (based on program)
- Appraisal based on the future value of the home
Our team works directly with your builder to coordinate timelines, documentation, and draws — keeping your project on track.
Basic Qualifications
Our Construction Loan Process
1
Step 1: Pre-Approval
We assess your financials and provide a construction loan pre-approval amount so you and your builder can plan accordingly.
2
Step 2: Finalize Building Plans
You’ll work with your builder to submit a complete construction budget, timeline, and blueprint for lender approval.
3
Step 3: Appraisal & Underwriting
An appraisal is ordered based on the finished value of the home. We handle the paperwork and underwriting to move you to closing.
4
Step 4: Draw Schedule & Inspections
As construction progresses, funds are released in phases. We coordinate with your builder for draw requests, inspections, and disbursements.
5
Step 5: Convert to Permanent Mortgage
Once construction is complete, your loan seamlessly converts into a standard 15- or 30-year mortgage with predictable monthly payments.
FAQs About Construction Loans
How is a construction loan different from a regular mortgage?
A construction loan is short-term and based on the future value of your home. It’s disbursed in phases during construction, not as a lump sum.
Do I need to own the land first?
No — you can use a construction loan to purchase land and build at the same time, all under one loan.
Can I use my own contractor?
Yes, but they must be a licensed and insured builder approved by the lender.
What happens if construction is delayed?
We work closely with your builder to update timelines and ensure that loan terms remain aligned with project progress.
Ready to Build Your New Home?
Whether you're designing your dream home or starting with a basic floor plan, our team is here to help you finance your construction with clarity and care. Let Quality Home Mortgage be your trusted partner from blueprint to front door.