Wisconsin Construction Loans — build it, then live in it
Financing a new build is different from buying an existing home. A construction-to-permanent loan funds the build and rolls into your mortgage — often with a single closing. I line up lenders who do Wisconsin new construction smoothly.
What is a construction loan?
A construction loan finances the building of a home — land, materials, and labor — and is paid out to your builder in stages called “draws.” The most popular option in Wisconsin is a construction-to-permanent loan, which converts into your regular mortgage when the home is finished.
A construction loan is the right fit if you’re:
- Building a brand-new home on a lot you own or are buying
- Working with a licensed builder on a fixed plan and budget
- Taking on a major renovation or tear-down/rebuild
- Looking to avoid paying for two separate closings
The mechanics are different from a normal purchase, so the most important thing is a lender — and a broker — who does new construction all the time. That’s where I come in.
How a construction-to-permanent loan works
One loan, two phases — and ideally one closing:
- Build phase: the lender releases funds to your builder in draws as work is completed; you typically pay interest only on the amount drawn
- Conversion: when the home is finished, the loan automatically converts to a standard 30-year (or other term) mortgage
- One close (“single-close”): you lock and close once, which saves on costs and paperwork versus a two-close structure
There are also two-close options (a short-term construction loan, then a separate permanent loan). I’ll walk you through which structure fits your build and budget.
Construction loan requirements in Wisconsin
| Requirement | What lenders generally want |
|---|---|
| Credit score | Usually 680–700+ (varies by program) |
| Down payment | Often 10–20% of the total project cost |
| Builder | A licensed, approved builder with a signed contract, plans, and a fixed budget |
| Contingency reserve | A cushion built into the budget for overruns is typically required |
| Documentation | Income, assets, the build contract, plans/specs, and an “as-completed” appraisal |
| Property | Primary residence or second home (investment varies by program) |
Already own the lot? Its value can often count toward your down payment. Tell me your plan and I’ll map the numbers.
How to get a construction loan in Wisconsin
Get pre-approved
We confirm your budget and the right structure before you’re deep into builder conversations.
Builder, plans & appraisal
We document your builder, plans, and budget and order an as-completed appraisal, then close once (single-close).
Build & convert
Funds release in draws as your home goes up; at completion the loan becomes your permanent mortgage.
Your local Wisconsin construction lender
I’m a local, 5-star mortgage broker serving Milwaukee, Wauwatosa, and builders and buyers across all of Wisconsin. Construction financing has more moving parts than a standard loan — so I match you with lenders who specialize in it and keep your draws and timeline on track.
Wisconsin construction loan FAQ
What is a construction-to-permanent loan?+
It’s a single loan that funds your home’s construction in draws, then automatically converts to a regular mortgage when the build is complete — often with just one closing, which saves time and costs.
How much down payment do I need for a construction loan?+
Often 10–20% of the total project cost, depending on the program. If you already own the lot, its value can frequently count toward your down payment.
What credit score do I need for a construction loan?+
Usually around 680–700 or higher, though it varies by lender and program. I’ll match you to the right one for your credit profile.
Do I pay a mortgage during construction?+
During the build phase you typically pay interest only on the funds drawn so far — not a full principal-and-interest payment. That kicks in once the loan converts to permanent.
Can I use my own builder?+
Generally yes, as long as the builder is licensed and approved by the lender, with a signed contract, plans, and a fixed budget. I’ll help confirm your builder qualifies.
One-close vs. two-close — what’s the difference?+
One-close (construction-to-permanent) means a single loan and closing for both phases. Two-close uses a short-term construction loan, then a separate permanent loan. One-close usually saves on costs; I’ll recommend what fits your build.
How do I start a construction loan in Wisconsin?+
Start with a pre-approval and a quick conversation about your lot, builder, and budget. Call or text (414) 975-2654 and we’ll map out the structure.
Building in Wisconsin?
Get a free, no-pressure pre-approval and I’ll structure the construction loan that fits your build — usually same day.
Have a question about construction loans?
Send me a note — it comes straight to me, and you’ll get a personal reply.
Got it — thank you!
Your message is on its way to Adam. Need an answer now? Call or text (414) 975-2654.