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Construction loan closing costs: the full list
What you pay at closing on an investor construction loan, line by line, with a worked example.
Get my termsNew construction loansHow much are construction loan closing costs?
Short answer: on an investor construction loan, plan for the lender's points and fees, title, recording and insurance costs, on top of your down payment. With us, your down payment is 10% of the lot price plus the build budget; your loan officer gives you the full closing cost estimate with your terms.
See your terms in seconds
Your loan amount shows as you type. Send the deal and a loan officer follows up.
Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
Construction loan closing cost checklist
- Points: a percentage of the loan amount, shown in your quote
- Lender processing or underwriting fee
- Appraisal
- Title insurance and escrow fees: set by the title company
- Recording fees: set by the county
- Builder's risk and liability insurance: required during the build
- Your 10%: of the lot price plus the build budget
Worked example
| $400,000 build | Amount |
|---|---|
| Lot price | $80,000 |
| Build budget | $320,000 |
| Total cost | $400,000 |
| Loan (90%) | $360,000 |
| Your 10% | $40,000 |
Add points and lender fees from your quote, plus title, recording and insurance, to get your full cash to close.
Get my terms: enter your lot price, build budget and sale price, send the deal, and a loan officer sends your pricing.
Ways to lower your cash to close
- Negotiate a lower lot price; it lowers your 10%
- Tighten the build budget with real bids
- Shop builder's risk insurance
- If you already own the lot, its value can count toward your share; see land and construction loans
Compare typical pricing in construction loan rates.
Questions builders ask
Straight answers about construction loan closing costs.
What are typical construction loan closing costs?
Lender points and fees, appraisal, title and escrow, recording fees, insurance, and your down payment.
Are closing costs included in the loan?
Points and fees are usually paid at closing. Our loan covers 90% of the lot and build budget.
How do I see my points and fees?
Send your deal using the form on this page. A loan officer sends your full terms.
How much cash do I need to close?
Your 10% of lot and build, plus points, fees, title, recording and insurance. Your loan officer gives you the full estimate.
Is there an appraisal?
Yes, the lender orders an appraisal as part of the loan.
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