Find The Right Mortgage For You
Construction loans are a great fit if you're looking to build or renovate a home.
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Can’t find your perfect home? Build it instead.
Ready to build your dream home? We make the process simple with flexible financing and expert support. And with our Builder Connect program, you’ll get exclusive savings, personalized service, and peace of mind knowing your builder understands our process and is ready to get started.
Why Build With Us?
Save Upfront
Choose a Builder Connect partner, and you’ll need just 10% down, helping you save more from the start. Already own land? Use it for your down payment!
Easy Qualifications
Qualify with a minimum credit score of 700—lower than the typical 720— making financing your home build easier and more accessible.
Trusted, Local Service
With local lending and servicing, you’ll have a trusted lender who knows the area and will be by your side to guide you through every step of the way.
How it Works
Choose a Builder through Builder Connect
Choose from our trusted Builder Connect list—local builders who know our process and help keep your project on track. You’ll need just 10% down when you work with one of the builders on our list. Already have a builder in mind? They can easily join the list by meeting a few simple requirements.
Get a Construction Loan
Once you have a builder in mind, it’s time to apply for a construction loan to cover the building costs. During construction, you’ll only pay interest on the funds you’ve used, keeping your payments low and manageable.
Switch to a Permanent Mortgage
After your home is built, we’ll help you transition to a permanent mortgage with new terms (like a traditional mortgage), so you can move in.
Build with Confidence
Builder Connect pairs you with local builders who know our construction process, making your building experience smoother from start to finish.
Local Builders
All of our builders are local and familiar with our process, helping ensure a smooth experience from start to finish.
Easy Coordination
Our builders know how we work, so communication is streamlined and timelines stay on track.
Peace of Mind
Fewer surprises, fewer delays—just a more confident path to your finished home.
Our Builders
MENCO Construction
AR Quality Homes
Envision Contracting & Development
Privet Hedge Homes
CS Custom Homes
Thomas Long Homes
Covington Building
Randy Wiggins Company
Key Builders
Spectrum Homes
Lafever & Co Builders
HD Homes
G2 Contractors
JWC Construction
Ready to get started?
More Arkansans trust us for their mortgage loan than any other lender. With local lenders and expert servicing from start to finish, we’re with you every step of the way
Already Own the Land?
If you already own the land where you’re planning to build, you can still use our construction loan to finance your project. In fact, you can use the value of that land as a portion of your down payment!
Frequently Asked Questions
What’s a construction loan?
A construction loan is a short-term mortgage that helps you finance the building of your dream home. It covers everything from materials to labor, and once your home is complete, you’ll switch to a regular mortgage to pay off the loan.
How does a construction loan work?
Think of a construction loan like a credit line. You request funds in stages as your home is being built. You’ll only pay interest on the funds used, so your payments stay low while the house is being constructed.
What is a draw?
A draw is just a payment made to your builder in stages throughout the construction process. It’s based on milestones like completed framing or finished plumbing, ensuring your builder is paid for the work as it gets done.
Is building more expensive than buying?
Building can actually be more affordable than buying an older home, especially if you factor in the costs of renovations and maintenance. Plus, a new home is built to the latest standards, meaning it’s more energy-efficient and can save you money in the long run.
Do I need to sell my current home before building?
Nope! During construction, you only make interest payments, so you may not need to sell your current home right away. Of course, your financial situation could influence this, but we’re happy to guide you through the process. Just reach out to our team to learn more!
Can I use any builder?
We want to make sure you’re working with the best, so we require your builder to be licensed and on our Builder Connect list. If your builder isn’t on our list, don’t worry—they can work with us to become part of our Builder Connect program.
What is the Builder Connect program?
The builders on our Builder Connect list know our process and can help ensure your project goes smoothly. Plus, there are some great perks like a lower down payment and faster draw requests!
How does working with a builder on the Builder Connect list benefit me?
When you choose a builder on our Builder Connect list, you get:
- Only 10% down payment (90% LTV)
- Lower credit score requirements (as low as 700)
- No fees for construction loan extensions
- Faster draw requests, keeping your project on track
- Direct deposit of funds into your builder’s Arkansas Federal account (with your approval)
