Building or Buying New Construction
There’s no place like a new home — and no two paths to getting there are exactly the same.
Which Path Is Yours?
Whether you’ve already found your lot, have a builder lined up, or are still in the dreaming stage, let’s start with where you are in the process. Here are the three most common scenarios:
You come in at the finish line. When the home is 100% complete and ready for occupancy, you obtain what’s called an “end loan” — essentially a standard mortgage on a brand new home. This is often the simplest path, and depending on the loan type, you may need very little down payment.
Your land is your starting point. A construction loan can pay off any existing mortgage on the land and then disburse funds to your builder as construction progresses. When the home is complete, you transition to an end loan.
This is the most rewarding and most complex path. A construction loan can be used to purchase the land and fund the build, but you’ll need a house plan, a builder, and an agreed-upon price before you can close. If you’ve found land but aren’t ready with a plan or builder, a land loan can hold your lot in the meantime.
The Financing Options
How you finance your new home depends on which path above is yours. Here’s a quick overview:
If your builder is completing the home before you close, you simply need a mortgage at the end. FHA, VA, USDA/RD, and conventional loans are all available for new construction — when the house is 100% complete. See our loan program list here.
If you need to finance the construction itself, our one-time close construction loans are one of the most powerful tools available. You close once, lock your rate, and transition automatically to your permanent loan when construction is complete — no second closing needed. Available under FHA, VA, USDA, and conventional guidelines. Learn more about the Click & Close Collection →
Many borrowers use a traditional construction loan through a local bank. While Bookend Lending does not offer traditional construction loans, we do offer a full suite of Click & Close one-time close construction loans underwritten to conventional, VA, FHA, and USDA loan standards. If that’s the right fit for you, visit our Click & Close Collection page.
These three local loan officers are well known for their construction lending expertise:
Before You Break Ground
The financing is only one piece of the puzzle. Some of the most important decisions you’ll make happen long before anyone picks up a shovel.
This is harder than it sounds. When I built my own home, I searched for floor plans with every feature I wanted — and got zero results. I backed off the detail and got over 1,000. The sweet spot turned out to be searching by square footage with some room to grow: I wanted 1,800 square feet, so I searched 1,400–1,600 knowing that modifications would bring me back up. From one of those plans, I created the floor plan that became my home.
A few things worth knowing as you search:
- Some builders work only from a set menu of plans they’ve built before. Others are design-builders who will work from your vision — and the most flexible are happy to build any plan you bring them.
- A true architect brings design expertise, structural knowledge, and someone who advocates for your vision throughout the build. Architect fees are generally 8–10% of the total project cost — on a $300,000 build, that’s roughly $24,000–$30,000. Most homeowners who have used an architect find the investment worthwhile. Architects often identify issues no one else considered, help avoid costly mistakes, and assist in decision-making when questions arise during the build. Costs vary by scope, so get quotes from two or three before deciding. Some architects also offer à la carte services — just the plans, without full construction oversight — at a lower cost.
- CAD design services are less expensive than a full architect but more limited.
For floor plan resources and additional tools to help you plan your build, visit our Construction Resources page.
A great home isn’t built with big decisions — it’s built with small ones. Quality comes from the choices you make upfront, and the details shape how your home feels for years.
These are the questions that seem small on paper and matter enormously on move-in day:
- Where do you want outdoor electrical outlets — and how many?
- How many outdoor spigots do you need, and where should they be located?
- Should you put a sink in the garage?
- Should you install a separate meter for your irrigation system?
- Have you planned for a future generator hookup?
- Have you thought about EV charger rough-in for the garage?
Visit our Construction Resources page → where you can find sample construction budgets, checklists, and other links to all things construction.