Financing a new home build — especially when you already own land — requires a different loan structure than buying an existing home.
Forma Home Builders works directly with 1st Advantage Mortgage, a local mortgage brokerage that specializes in construction-to-permanent loans, land-equity financing, and new construction lending for buyers building on their own property.
By aligning your builder, loan program, construction timeline, and draw schedule from the beginning, we help reduce approval issues, delays, and unexpected costs that often occur when financing is handled separately.
Whether your land is located in Gaston County, Mecklenburg County, Union County, or surrounding areas in North and South Carolina, our process is designed to take you from land ownership to move-in day with clarity and confidence.
This financing approach is specifically designed for buyers who are building a new home — not purchasing an existing one. It’s ideal for situations where traditional mortgage processes fall short during construction.
This financing is a strong fit if you are:
A buyer who already owns land and plans to build a new home
Purchasing land and building immediately with a licensed home builder
Building a spec or semi-custom home with Forma Home Builders
Looking for a construction-to-permanent loan rather than two separate closings
Wanting your builder and lender aligned from day one to avoid delays and cost overruns
Buyers who already own land often benefit from specialized loan structures that account for land value, construction phases, and draw schedules — which is why this page focuses on build-specific financing.
Yes. Most new homes built on privately owned land require a construction-to-permanent loan or a similar financing structure. These loans are designed to fund the build in stages and then convert to a long-term mortgage once construction is complete.
In many cases, yes. If you already own land, its appraised value may be used as equity toward your construction loan, which can reduce the amount of cash needed upfront. This depends on the land valuation, loan program, and your overall financial profile.
Yes. Buyers are free to work with a lender of their choice. However, new construction financing often benefits from lenders experienced with construction draws, inspections, and the transition to permanent financing, which helps reduce delays and misalignment during the build process.
Yes. Financing structures can differ based on whether the home is a move-in-ready spec home, a semi-custom build, or a home built on privately owned land. The loan type and timing depend on the stage of construction and how the transaction is structured.
The mortgage process typically begins early, often before construction starts. Early qualification helps establish budgets, confirms financing eligibility, and allows timelines to align between the builder, lender, and buyer throughout the build.
Construction loan rates can differ from traditional mortgage rates and may adjust once the loan converts to permanent financing. Rates, terms, and structures vary by lender, loan program, and market conditions at the time of application.
In many cases, yes. Certain upgrades, options, or design selections may be included in the total construction loan amount, depending on the lender’s guidelines and appraisal process. Your lender can help determine what costs may be financed versus paid separately.
With a construction-to-permanent loan, the financing typically converts into a long-term mortgage once construction is finished and final inspections are completed. This allows buyers to transition smoothly from the build phase into permanent homeownership.
No. Buyers are not required to use a specific lender. While Forma Home Builders may recommend lenders familiar with new construction financing, buyers may choose any lender that meets the requirements of the transaction.
Some financing programs may not be suitable for certain construction scenarios, land conditions, or borrower profiles. New construction projects with complex site conditions or non-standard loan structures may require additional planning or specialized financing options.