Construction loan down payment varies by program — conventional paths often require 20% or more, VA may allow $0 down for eligible veterans, and land equity can count toward your required investment. Exact percentages depend on credit, completed-value LTV, and lender overlays.
Unlike a resale purchase where down payment rules are fairly standardized, construction financing adds complexity — the lender underwrites on the completed value of a home that does not exist yet. That means down payment requirements can be higher and more variable than a typical purchase loan.
Conventional construction-to-permanent loans often require 20% or more depending on lender overlays, credit profile, and loan-to-value on the appraised completed value. VA construction may allow $0 down for eligible veterans when program and lender guidelines are met. FHA construction paths exist in some markets with their own minimum investment rules.
Land equity can reduce the cash you need — if you already own the lot, its appraised value may count toward your down payment. But soft costs, builder deposits, contingency reserves, and closing costs often still require cash beyond the minimum equity percentage. Ryan and Steve run the full numbers before you sign a builder contract.
Down payment percentage is only part of the cash picture — these factors shape your total out-of-pocket at closing and during the build.
A clear cash plan prevents delays when draw requests and closing dates arrive.
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Related guides to help you compare options and move toward pre-approval.
How owned-lot value reduces cash needed at closing.
$0 down construction options for eligible veterans and service members.
Conventional construction-to-permanent paths and typical down payment ranges.
Compare programs, costs, and timelines to see if building fits your goals.
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Ryan & Steve calculate your exact down payment, land equity credit, and total cash needed — including soft costs and contingency — before you commit to a builder. Not a commitment to lend; subject to credit and property approval.