Construction Loans for Building a Home

Construction loans designed to fit your plans, pace, and priorities.

From dream homes to meaningful upgrades, Iowa Trust makes financing home construction loans straightforward and flexible. Whether you're building new or renovating, we'll work with you to create a loan that fits your timeline, budget, and plans.

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Why Choose Iowa Trust?

  • Competitive rates and flexible terms
  • Local lending decisions
  • Financing for new home construction and renovations
  • Experiencedconstruction loan lendersto guide you from start to finish
  • Construction-to-permanent loanoptions available

Frequently Asked Questions

How do construction loans work?

New construction home loans provide funding in stages as your home is built. With a loan for home construction, you typically make interest-only payments during the building phase before the loan is paid off or converted into a permanent mortgage.

How much do I need to put down?

Fornew home construction loans, we finance up to the lesser of 80% of the appraised value or 80% of the total construction cost.

Can I use my own builder?

Yes. We work with a variety of builders, and you are welcome to choose your own. All builders must be reviewed and approved by Iowa Trust before the construction home loan process begins.

How long does the construction process take?

Construction timelines vary depending on the size and complexity of the project, but most homes are completed within 6 to 12 months.

How to get a home construction loan?

To get a home loan for construction, compare construction loan lenders, choose the best option for your project and submit an application with your financial information, building plans and builder details.

How long does the application and approval process take?

The application, underwriting, and approval process typically takes 30 to 45 days, depending on the completeness of the application and supporting documentation.

Do I lock my construction loan interest rate up front?

Your construction loan rate is fixed for up to 12 months during the building phase. If you’re using a construction-to-permanent loan, the interest rate for your permanent mortgage is typically locked closer to project completion, allowing you to take advantage of current market conditions at that time.

*Annual Percentage Rate (APR) effective as of 4/24/2026. Rates and loan program specifics are subject to change at any time. Annual percentage rate will vary. APR and Payment amount shown are based on $400,000 loan amount, 4.99% interest rate, and 12-month term. All approvals are subject to underwriting guidelines and requirements. Rate is only available for consumer residential construction loans. The information contained herein is not an offer to extend customer credit. Fees apply. Iowa Trust NMLS ID# 452947.