Construction Loans in Charlotte, NC - Build Your Dream Home with Local Experts
Finance your new build or major renovation with flexible, affordable construction loan options backed by On Point Home Loans’ Charlotte mortgage specialists.
What Is a Construction Loan?
A construction loan is a short-term, specialized mortgage that covers the cost of building or renovating a home from the ground up. Instead of receiving one lump sum, the borrower receives funds in stages-called draws-that correspond with each phase of the project.
In Charlotte, NC, construction loans from On Point Home Loans allow homebuyers, investors, and builders to finance land, materials, labor, and permits with a single, convenient solution. Once construction is complete, the loan can easily convert into a permanent mortgage, saving you time, paperwork, and money.
Our Charlotte construction financing programs are designed for:
- Primary and secondary home builds
- Investment or rental property construction
- Major structural renovations
- Spec home or tear-down rebuild projects
How Construction Loans Work in Charlotte, NC
When you apply for a construction loan in Charlotte, your approval is based on the as-completed value of your project. Lenders review your builder contract, construction plans, and budget before releasing funds.
Here’s how the process works:
- Apply and prequalify – We assess your financial profile and project plans.
- Appraisal and approval – The appraiser determines your home’s projected value after completion.
- Draw schedule setup – Funds are released in stages as each construction milestone is verified.
- Interest-only payments – You pay interest only on the funds disbursed, not the full loan amount.
- Conversion to permanent loan – When the home is complete, your short-term loan transitions into a long-term mortgage.
Because On Point Home Loans is based in Charlotte, NC, we understand local permitting, zoning, and inspection requirements. Our team coordinates closely with your builder and ensures smooth disbursement at every draw stage
Is a Construction Loan Right for You?
A construction loan may be ideal if you:
- Plan to build your own custom home in Charlotte. You can finance land, construction, and final mortgage in one streamlined loan.
- Want control over design and materials. Choose your builder, layout, and finishes with full transparency over each payment stage.
- Own land and want to start building. Use your land’s equity as part of your down payment to reduce upfront costs.
- Need flexible financing for major renovations or rebuilds. Replace or expand your current home without taking separate construction and mortgage loans.
These advantages make construction loans in Charlotte, NC an attractive option for homebuyers, investors, and developers seeking tailored financing that matches real project timelines.
You May Be a Great Fit for a Construction If You:
- Plan to Build Your Dream Home or Investment Property
You want to finance a ground-up or custom build in the Charlotte metro area, and prefer flexible draw schedules to match your project timeline. - Own or Plan to Purchase Land in North Carolina
You already own a residential lot or intend to acquire land in Charlotte or nearby areas, and want to bundle land and construction costs into one convenient loan. - Have Solid Financial Standing
You maintain good credit, stable income, and can provide a reasonable down payment—key factors lenders look for in Charlotte construction loan approval. - Work With Licensed Builders and Verified Contractors
You’re partnering with a North Carolina-licensed builder who understands local codes, inspections, and permit processes. - Want Local Expertise and Support
You prefer a Charlotte-based loan team that understands Mecklenburg County requirements, neighborhood growth trends, and builder relationships. - Value Long-Term Equity Growth
You view construction as a way to build wealth through home equity in Charlotte’s rapidly expanding real estate market.
Fast approvals. Local support. Up to $3M in flexible funding.
Pros and Cons of Construction-Based Loan Loans
What to Know Before You Build or Invest
- Custom Home Financing Flexibility
Tailor your loan to fit your construction timeline, budget, and design preferences anywhere in the Charlotte area. - Interest-Only During Construction
Pay only for what’s drawn during each phase of your build—keeping monthly costs low while construction progresses. - Local Builder Network Advantage
Work with Charlotte-based builders and lenders familiar with local permitting and inspection processes. - Equity Growth Potential
As construction progresses, property value typically increases, allowing you to refinance or leverage equity sooner. - One-Time Close Options
Some Charlotte lenders offer single-close construction loans, combining construction and permanent financing for convenience. - Strong Local Market Demand
Charlotte’s growing housing market supports high resale value once construction is complete.
- Strict Qualification Requirements
Lenders require detailed plans, higher credit scores, and strong documentation before approving construction financing. - Market & Cost Fluctuations
Charlotte’s construction costs can rise with material shortages or labor delays, impacting total loan amounts. - Variable Timeline Risks
Weather or permit delays can extend your project, affecting disbursements and interest payments. - Appraisal Uncertainty
Future home value estimates can differ from projections, influencing final loan terms. - Higher Down Payment Expectations
Many Charlotte lenders require 20% or more down due to project risk. - Complex Draw Process
Funds are released in stages after inspections, requiring precise scheduling with builders and lenders.
Top Reasons to Choose On Point Home Loans for Construction Loans
Local Charlotte Construction Loan Experts
On Point Home Loans is locally based in Charlotte, NC, giving our team deep knowledge of the regional market, zoning rules, and local builder networks. We guide you through Mecklenburg County’s unique permitting and inspection requirements to keep your project moving efficiently.
Personalized Lending Solutions
Every borrower has different goals. Whether you’re building a forever home or an investment property, we tailor your construction loan for flexible draw schedules, competitive rates, and quick turnaround times.
Trusted by Builders and Investors
Our long-standing partnerships with Charlotte builders and contractors help us streamline communication and project milestones, so funds are released on time with minimal delays.
Seamless Transition to Permanent Financing
Avoid multiple closings and fees. Once construction is complete, your loan converts automatically into a fixed or adjustable-rate mortgage, simplifying your long-term financing.
Competitive Rates & Transparent Costs
We provide clear, upfront pricing with no hidden fees. Our local lending experts compare top programs to secure the best possible rate for your construction project in Charlotte.
Dedicated Support from Start to Finish
You’ll have a direct line to your loan officer throughout the entire build process. From prequalification to your final draw, we ensure clear communication and dependable updates every step of the way.
Construction Loans Up to $3M — Fast Funding, No Junk Fees
Build from the ground up with expert-backed construction financing designed for real estate investors and developers.
• Finance land, framing, and finishings in one streamlined loan
• Interest-only payments during construction reduce upfront costs
• Custom draw schedules align with your build phases and cash flow
• Supports ground-up builds, major renovations, and project refinancing
• Loan amounts from $50K to $1M – fund small builds or large-scale housing projects
• No junk fees – just clear, upfront terms tailored for developers and investors
Construction Loan FAQs
Most lenders require a minimum credit score of 680, but some programs accept lower scores if you have strong income, builder experience, or substantial equity in your land. On Point Home Loans helps match your profile to the most flexible programs available.
Yes. With land and construction financing, you can include the cost of the land, permits, and materials in one single loan. This simplifies the process and saves money by avoiding separate closings.
Typically, a 20%–25% down payment is needed depending on project scope, credit, and loan type. However, your land value or existing equity can often count toward this requirement, reducing your cash outlay.
Funds are released in several stages called draws—covering major milestones like foundation, framing, roofing, and completion. Each draw is approved after inspection to confirm progress, ensuring your funds are used efficiently.
Absolutely. Renovation construction loans are ideal for large remodels, expansions, or teardown rebuilds within Charlotte and surrounding counties. You can finance both labor and materials under one convenient loan.
Local lenders like On Point Home Loans understand Charlotte’s real estate trends, builder network, and county inspection process. Working with a local team ensures faster approvals, smoother communication, and accurate guidance through every stage of your build.
