Construction Loans in Florida: Everything You Need to Know

If you’ve been dreaming of building a custom home in Florida—or making major renovations to an existing property—you’ll likely need a construction loan. These loans work very differently from traditional mortgages, so understanding the ins and outs is key to making smart decisions.

Here’s your full guide to construction loans in Florida, including how they work, what to expect, and how Shupe Lending Group can help.

What Is a Florida Construction Loan?

A Florida construction loan is a short-term loan used to finance the building or renovation of a home. Unlike a traditional mortgage that pays out all at once, a construction loan releases funds in stages (called “draws”) as progress is made on the home.

Once the build is complete, the loan is either converted into a standard mortgage (construction-to-permanent) or paid off through a new mortgage (construction-only).

Construction-to-Permanent Loans (One-Time Close)

In Florida, construction-to-permanent loans—also known as one-time close loans—are a popular option. They’re convenient because you only close once, locking in your rate and saving on closing costs.

Benefits:

• One closing = fewer fees

• Lock your rate before construction begins

• Seamless transition into a standard mortgage

This is ideal for custom home builds, especially in areas like Tampa Bay, Sarasota, and Central Florida, where new developments are booming.

What Can Construction Loans Be Used For?

You can use a construction loan to:

• Build a new primary or vacation home

• Build investment properties to sell or rent

• Rebuild after storm damage (common in Florida!)

What Do You Need to Qualify in Florida?

Construction loans require more documentation and planning than traditional mortgages. Here’s what lenders typically look for:

• Strong credit score (usually 640+)

• Detailed construction plans & timeline

• Licensed Florida contractor or builder

• Down payment of 10–20% (though sometimes as low a 0%)

• Appraisal based on the completed value of the home

How the Draw Schedule Works

Funds are released in stages as work is completed. Common stages include:

1. Foundation

2. Framing

3. Plumbing & Electrical

4. Interior Finishes

5. Final Inspection

   
   

An appraiser or inspector will verify progress at each step before the next draw is released.

Why Florida-Specific Expertise Matters

Florida construction loans can come with extra layers, like:

• Hurricane-related building codes

• Flood zone considerations

• Unique permitting requirements by county

Ready to Build in Florida?

Whether you're dreaming of a custom home on the coast or renovating a classic Florida bungalow, Shupe Lending Group is here to make it happen.

Contact us today to learn more about construction loan options and see if it's the right path for your goals!

Jonathan Shupe Branch Manager

Jonathan Shupe NMLS ID# 1649211 is Manager of Shupe Lending Group NMLS ID# 2478065. Jonathan Shupe and his team of loan officers are licensed in multiple states. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders overlays on government and conventional loans. We have a reputation of being able to work with over 270 different lenders to be able to offer out clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, evenings, weekends, and holidays.