For Builders, Developers & Homeowners

Construction Loans — Build It Right. Finance It Fast.

Building from the ground up, tearing down and rebuilding, or financing a major renovation? We’re a direct lender with deep experience in construction lending. One lender, one process, from break to close.

30–45

Days to Close

100%

In-House Underwriting

A+

BBB Rating

Licensed in NY, NJ, CT, PA, FL

4.9

4.8

4.9

You're in the right place

Construction lending is different — most banks treat it like a specialty product they barely understand. Draws that move slowly, inspectors who don’t show up, underwriters who’ve never financed a build. You need a lender who has done this before. Many times. That’s Powerhouse Solutions.

Education

What Is a Construction Loan?

A construction loan is a short-term financing solution that funds the building or substantial renovation of a property. Unlike a conventional mortgage, where the full loan amount is disbursed at closing — construction loans are released in scheduled installments called draws, tied to completed construction milestones. You only pay interest on the funds drawn, not the full loan amount.

At the end of the construction period, the loan either converts automatically into a permanent mortgage (construction-to-permanent) or is paid off via a separate refinance (construction-only). Powerhouse Solutions offers both structures and will help you determine which fits your project, timeline, and financial goals.

Construction lending across NY, NJ, CT, PA, and FL requires more than capital, it demands a deep understanding of permitting, contractor execution, and valuation challenges. Built in and refined over decades, Powerhouse Solutions delivers that expertise across every market we serve. Compare PHS, Banks, and Hard Money Lenders →

Construction Loans Are Right for You If You're:

Building a new home from the ground up
Tearing down an existing structure to rebuild
Financing a major gut renovation
Developing a rental or investment property
Building a multi-family property
An investor or developer scaling a portfolio

Eligibility

Requirements & What to Expect

Construction loans have more moving parts than a standard purchase mortgage. Here’s what Powerhouse Solutions looks at — and what you’ll need to have ready.

Credit Score

680+ preferred

Some programs accept 640+. Higher scores unlock better rates and terms on both construction and permanent phases.

Down Payment

20–25% of total project cost (land + construction budget)

Land equity you already own counts toward this requirement.

Construction Plans

Full architectural plans

Full architectural plans, detailed specs, and a signed contractor agreement required before underwriting can begin.

Licensed Contractor

NY Licensed & Insured

Your general contractor must be licensed and carry adequate general liability and workers' compensation insurance.

Build Timeline

Up to 12–18 months

Extensions available when needed. Interest paid only on amounts drawn during construction — not the full loan amount.

Employment / Income

W2 and self-employed borrowers both qualify

Self-employed may use 2 years of returns or bank statements depending on program.

Property Types

Primary residence, second home, investment property

Primary residence, second home, investment / rental property, multi-family build. Ground-up, tear-down rebuild, and major renovation all eligible.

The Draw Schedule — How Your Funds Are Disbursed and Protected:

Draws are released as construction milestones are completed and verified by an independent inspector. You only pay interest on the amounts drawn — protecting your cash flow throughout the build. Here is a typical draw schedule for a ground-up residential construction project:

Initial Draw

Land / Mobilisation

Loan close. Funds land acquisition (if applicable) and contractor mobilisation costs.

Draw 1

Foundation Complete

Inspector verifies foundation work is complete and approved. Funds the next phase of work.

Draw 2

Framing Complete

Inspector verifies framing, rough structural work. Represents a major milestone in cost and risk reduction.

Draw 3

Rough-Ins Complete

Electrical, plumbing, and mechanical rough-ins verified before drywall covers the work.

Draw 4

Drywall & Interior

Interior finishes underway. Inspector confirms work is on schedule and within budget.

Final Draw

Certificate of Occupancy

CO issued. Final inspection approved. Construction-to-permanent conversion triggered, or refinance into permanent financing begins.

Powerhouse Solutions coordinates the draw schedule with your contractor from the start. Fast inspection turnaround and prompt disbursement are a core part of the service — because every day a project waits on the lender costs real money.

Two Loan Structures — Which Is Right for Your Project?

Feature	Construction-to-Permanent	Construction-Only
Closing Events	One close — construction and permanent in one transaction	Two closes — once for construction, once for permanent mortgage
Closing Costs	Paid once at the single closing	Paid twice — at each separate closing
Rate Lock	Rate locked at the original closing	Rate on permanent mortgage determined when construction ends
Best For	Most borrowers — simpler, one process, one lender	Borrowers who want to shop for a different permanent mortgage after build
Documentation	One application, one underwriting process	Two separate applications and underwriting reviews
Flexibility	Less — committed to one lender through both phases	More — can choose any lender for permanent financing
Typical Use Case	Primary residence, second home builds	Investors, developers, unusual permanent financing situations

Not sure which structure fits your project? Your Powerhouse Solutions loan officer will walk through both options, show you the cost difference, and help you decide — no pressure, no obligation.

Why Powerhouse Solutions

What Makes Powerhouse Solutions Different for Construction Lending

Construction loans go sideways when the lender doesn’t know what they’re doing. Powerhouse Solutions has been doing construction loans for decades. Here’s what that means for you.

We Underwrite Construction In-House

We don't send your file to an outside underwriter unfamiliar with construction. Our team has reviewed thousands of build projects — we know what a complete file looks like, and we move quickly because of it. No delays waiting for decisions from someone who's never financed a ground-up build.

Draws That Move With Your Build

Slow draws kill project momentum. Powerhouse Solutions coordinates the draw schedule with your contractor and processes inspection-approved disbursements fast. Your contractor gets paid on time, your project stays on schedule, and you don't spend your time chasing the lender for money that should already be in hand.

One Dedicated Loan Officer, Start to Finish

Construction projects run 6–18 months. You won't be handed off between departments or left wondering who to call. Your Powerhouse Solutions loan officer stays with your file from application through the final draw and conversion. One person, one number, one point of accountability throughout the entire build.

Experience Navigating Local Market Complexities

Permitting in NJ is different from CT. Appraising a ground-up build in PA is not the same as valuing a coastal project in FL. Every market has its own nuances. Powerhouse Solutions has navigated these variations for decades, with roots and experience across every state we serve. That expertise is what keeps projects on track.

Comparison

Powerhouse Solutions vs Banks vs Hard Money Lenders

Construction financing is available from multiple sources. Here’s an honest look at the differences — speed, cost, flexibility, and who handles your file.

Feature	PHS — Direct Lender	Traditional Banks	Hard Money Lenders
Time to Close	30–45 Days	60–90+ Days	7–14 Days
Interest Rate	Competitive — direct pricing	Competitive, but rigid	Significantly higher (10–15%+)
Draw Process	Fast, in-house coordination	Slow, multi-department	Varies widely
Self-Employed Eligible	Yes — W2 and non-W2	W2-friendly only	Yes — asset-based
Construction-to-Perm	Available	Limited programs	Not typically
Investment Properties	Yes	Restrictive	Yes
Dedicated Loan Officer	One person throughout	Often routed by department	Varies
NY Market Experience	Decades of NY lending	Depends on branch	Varies

Hard money is faster, but the rate premium is substantial. Banks are slower and more rigid. Powerhouse Solutions gives you direct lender pricing with the flexibility and experience your project needs.

Ready to move forward?

Talk to a Construction Lending Specialist Today.

No obligation, no credit pull, no pressure. Just a clear conversation about your project and whether Powerhouse Solutions is the right fit.

The Process

How a Construction Loan Works at PHS

Pre-Qualification & Project Review

We review your financial profile, project plans, contractor credentials, and budget. You get a clear picture of loan amount, rate, and structure before you commit to anything.

Appraisal & Approval

We order a completed-value appraisal based on your plans and comparable properties. Underwriting reviews the full file in-house. Approval typically comes within 2 weeks of a complete submission.

Close & Break Ground

Loan closes in 30–45 days. The initial draw funds land acquisition (if applicable) and project mobilisation. Your contractor gets moving. You only pay interest on what's drawn.

Draws, Completion & Conversion

Draws are released as milestones are inspected and approved. At project completion, your construction loan converts to a permanent mortgage — or we refinance you into the right long-term product.

Real Stories

What Powerhouse Solutions Construction Borrowers Say

Don’t take our word for it. Here’s what builders and homeowners say about working with Powerhouse Solutions.

FAQ

Construction Loan FAQs

Construction lending is more involved than a standard mortgage. Here are the questions borrowers ask most often — answered plainly.

What is a construction loan and how does it work?

A construction loan is a short-term loan that finances the building or major renovation of a property. Unlike a traditional mortgage where you receive funds upfront, construction loans are disbursed in stages — called draws — as work is completed and inspected. Once construction is finished, the loan either converts to a permanent mortgage (construction-to-permanent) or is paid off with a new mortgage (construction-only). Powerhouse Solutions handles both structures.

Who qualifies for a construction loan?

Construction loans are available to homebuyers building a primary residence, investors developing rental or flip properties, and current homeowners rebuilding. You’ll need solid credit (680+ preferred), a detailed construction plan and budget, a licensed general contractor, and sufficient equity or down payment. Both W2 and self-employed borrowers can qualify — self-employed borrowers may use bank statements in place of tax returns.

What is the difference between a construction-to-permanent loan and a construction-only loan?

A construction-to-permanent loan starts as a construction loan and automatically converts to a permanent mortgage once the build is complete — one set of closing costs, one process. A construction-only loan covers the build period, then must be refinanced or paid off separately. Construction-to-permanent is often simpler and more cost-effective; construction-only gives more flexibility if you want to shop for a different mortgage after the build. Your Powerhouse Solutions loan officer will show you the numbers for both.

How do construction loan draws work?

Draws are scheduled disbursements tied to completed construction milestones — foundation, framing, rough-ins, drywall, finish work, and final completion. After each phase, an inspector verifies completion before the next draw is released. Powerhouse Solutions coordinates the draw schedule with your contractor to keep the project moving and processes approvals quickly. During the construction period, you pay interest only on the amounts drawn — not the full loan amount.

What down payment is required for a construction loan?

Most construction loans require 20–25% down based on the total project cost — land plus construction budget. If you already own the land, that equity typically counts toward your down payment. For investment properties, requirements are generally higher. Your Powerhouse Solutions loan officer will calculate your exact requirement based on project cost, credit profile, and borrower type.

Can I use a construction loan to build an investment property?

Yes. Powerhouse Solutions offers construction financing for investment properties including single-family rentals, multi-family buildings, and fix-and-flip projects. Requirements differ from owner-occupied construction — typically higher down payment and different underwriting criteria — but the process is the same. We work with both experienced investors and first-time developers.

What happens at the end of construction?

If you have a construction-to-permanent loan, it converts automatically to a 30-year (or other term) fixed or adjustable mortgage once you receive a Certificate of Occupancy. If you have a construction-only loan, you’ll refinance into a permanent mortgage at that point. Powerhouse Solutions manages both the construction and the conversion or refinance in-house — no redundant paperwork, no change in your point of contact.

How long does a construction loan take to close?

At Powerhouse Solutions, construction loans typically close in 30–45 days. The timeline depends on project plan review, the completed-value appraisal, and title work. Because we underwrite in-house and have deep construction lending experience across NY, NJ, CT, PA, and FL, we move faster than lenders who treat these deals as exceptions.

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