--- title: How to Get a New Home Construction Loan description: Once you've found your new home builder, it's time to decide how to finance the construction. If you want to build your new home from scratch, getting a loan isn't quite as simple as getting a mortgag image: https://blog.homesandland.com/hubfs/How-to-Get-a-New-Home-Construction-Loan%20(1).jpg --- [![Homes & Land](https://blog.homesandland.com/hubfs/Images/hnl-logo.svg)](https://www.homesandland.com/) - [Homes](https://www.homesandland.com/homes) - [Rentals](https://www.homesandland.com/rentals) - [Agents](https://www.homesandland.com/agents) - [Commercial](https://www.homesandland.com/commercial) - [Open houses](https://www.homesandland.com/open-houses) - [Land](https://www.homesandland.com/land) - [Mortage](https://www.homesandland.com/mortgage) - More [Rentals](https://www.homesandland.com/rentals) [Agents](https://www.homesandland.com/agents) [Commercial](https://www.homesandland.com/commercial) [Open houses](https://www.homesandland.com/open-houses) [Land](https://www.homesandland.com/land) [Mortage](https://www.homesandland.com/mortgage) - [Log in](https://www.homesandland.com/account) - [Blog](https://blog.homesandland.com) - [Advertisers](https://advertise.homesandland.com/advertise) [How a Realtor Makes Home Buying Easier](https://blog.homesandland.com/how-a-realtor-makes-home-buying-easier) Buying a home is one of the most significant financial decisions you’ll ever make, but the process... 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[Read More](https://blog.homesandland.com/5-questions-ask-realtor-when-selling-home) [10 Step Guide to Selling Your Home](https://blog.homesandland.com/10-step-guide-selling-your-home) Ready to put your home on the market? Many people hope for a stress-free sales process, but the... [Read More](https://blog.homesandland.com/10-step-guide-selling-your-home) [Home](https://www.homesandland.com/) [Homes & Land Blog](https://blog.homesandland.com) > How to Get a New Home Construction Loan --- # How to Get a New Home Construction Loan ![](https://blog.homesandland.com/hubfs/Untitled%20design%20(59)-png-jpg.jpeg) Once you've found your new home builder, it's time to decide how to finance the construction. If you want to build your new home from scratch, getting a loan isn't quite as simple as getting a mortgage. It is important that you understand how to finance your new home. Many home buyers who choose to build their homes obtain a new construction loan, then convert it to a conventional mortgage after the home is built. According to www.bankrate.com, new construction loans are not standardized, like mortgages underwritten by Fannie Mae or Freddie Mac. Shop around at banks for the best rate. You can often compare loans, or at least find sources of loans, on the Internet. According to www.askthebuilder.com, a Web site that answers questions about construction, you can minimize your financial risk by selling your existing home before buying the new home, allowing you to have all the equity at hand. You may have to live in an apartment for awhile, but you can use the equity to finance the first stages of construction and you won't have to use the bank's construction loan for as long. Need to sell your existing home? Find a [local Realty Expert ](https://www.homesandland.com/sitemap/agents)who can help. Prefer to buy rather than build? 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