"You need 20% down to build."
Often not true. VA and FHA construction loans can mean a much smaller down payment, sometimes none at all with VA.
First time building
Building your first home? We'll walk you through it.
Building is different from buying: draws, site work, and a builder who gets paid in stages. Feeling new to it is normal, which is why we start with a conversation, not an application.
Ask anythingWe explain every step
The right orderLand, builder, plans, and loan
One loan, one closingLand, build, and mortgage together
Six statesTN · VA · NC · SC · GA · KY
The first step
Getting the order right
Land, builder, plans, loan: which comes first? Getting the order wrong is how people lose money, like putting a deposit on a home before knowing the land can support it.
Our advice: before you commit to any one piece, talk with us about all of them together. We'll tell you the right next step for your project, and sometimes that step is simply to wait a little.
What most people don't know to ask
The questions we help you ask
Will the land pass a perc test for a septic system? Is there water, or will you need a well? Does the advertised payment include site work? Is the builder approved for your loan program? Will someone stay with you after closing?
We bring these up on your first call, so nothing catches you off guard later.
Common myths
What first-time builders often hear
A lot of what people hear about building isn't quite right. Here are three we hear often:
"Manufactured homes can't get a real mortgage."
On a permanent foundation, on land you own or are buying, they can be financed like any other home.
"Building is only for experienced buyers."
Many of our clients are building for the first time. What helps most is a guide who explains each step.
Your first build, step by step
Every NewBuild loan follows the same six steps, from your first call to Move-In Day. It starts with a free consultation, and no house plans are needed.
Build Plan Consultation
Pre-Approval
Plan and Contract Review
Loan Closing
Construction
Move-In Day
Real builds
First-time buyers who chose to build
Kay and Eddie set out to buy an existing home, then decided to build their own instead.
Barndominium · Chuckey, TN
Two home purchases fell through, so they built their own instead.
As first-time buyers, Kay and Eddie used family gift funds for their down payment and built a roughly $331,000 barndominium with one FHA loan.
Read their story
Kay and Eddie came to us as first-time homebuyers hoping to buy an existing home. They went under contract twice but weren't happy with what was available in their price range, so they started looking at building instead. After they found land, their first builder turned out to be unfamiliar with turnkey barndominiums and the draw process a construction loan requires, and eventually backed out. Rather than risk losing the property, they secured a land-only loan to buy it and used the extra time to handle some site prep themselves. They then partnered with Summertown Metals, closed on their FHA one-time-close loan using gift funds from family for the down payment, and have since moved in.
Names have been changed to protect client privacy. Loan amounts and details are real but reflect each borrower's individual credit, income, and underwriting circumstances; results aren't typical or guaranteed for every applicant.
Your guide
One team, start to finish
You'll never feel rushed or talked over. Our small team explains each step in plain language and handles your loan from your first call to your final draw.
260+ five-star reviews
Since 2023 closing one-time close loans
Our team stays with you through every draw
Your loan program
Which loan fits a first-time builder?
Being a first-time builder doesn't decide your loan program. Your situation does. Veterans usually start with VA. FHA fits a smaller down payment, and conventional fits strong credit and a down payment. We'll help you choose on your first call.
Related situations: Without a big down payment Veterans You already own the land Land and home together
FAQ
Frequently asked questions
Do I start with the land, the builder, or the loan?
Start with a conversation that looks at all three together. Committing to one before the others is how first builds stall. We'll tell you the right next step for your project.
I don't know the terms. Will that be a problem?
Not at all. Words like "draw" and "one-time close" are our job to explain. Ask us anything, as many times as you need.
What's a draw?
During construction, your builder isn't paid all at once. The money is released in stages, called draws, as each phase of the work is finished. We manage the draws for you, from closing through move-in.
Can I get a sense of the cost before I call?
Yes. The cost planner gives you an early estimate of your land, home, and site work together. Then we'll fine-tune the real numbers with you.
What if buying an existing home makes more sense for me?
That's okay. Preferred Rate also helps buyers purchase existing homes, so you can change course and still work with the same people.
Your land. Your build. Let's talk it through.
A free consultation is 20 minutes. We cover your land, your eligibility, and the right loan structure. No application required.
Tennessee · Virginia · North Carolina · South Carolina · Georgia · Kentucky
Schedule a Free Consultation (opens in a new tab)
20 minutes · no application · no commitment
NewBuild is led by the Arrowood Team at Preferred Rate. 260+ five-star Google reviews.
Prefer to reach out directly?