Everything a builder needs to work smoothly with construction financing, in one place.
Ken Clark Jr., Certified Mortgage Advisor and Branch Manager with PRMG, has spent more than 28 years helping buyers finance homes, including new construction. This resource center is for custom and production builders, general contractors, modular and manufactured home retailers, developers, and the Realtors who work with them, in Sacramento, Northern California, New Jersey, and nationwide where PRMG is licensed.
Short answer: anyone whose business depends on a buyer's construction loan closing and funding on time.
Each guide below is written in plain English and is meant to be shared with your team, your buyers, and your trade partners.
Short answer: start with builder registration. Most construction loan programs require the builder to complete it before a buyer's loan can move to closing, so doing it early removes the most common delay.
The builder registration guide explains what the review covers and why it exists. When you are ready to gather documents, use the printable Builder Registration Checklist. It lists the license, insurance, business, experience, and project documents that are commonly requested.
Builder registration is a documentation review for program eligibility. It is not an endorsement, recommendation, or guarantee of any builder's work.
| If you want to know... | Read this |
|---|---|
| How builders get paid on a construction loan | Registration, the fixed-price contract, draws, interim interest, change orders, lien waivers, and completion documents on one-time close loans. |
| How the draw process works | Inspections, work in place, draw timing, and what slows a draw down. |
| What builder registration is | What is reviewed and how long it commonly takes. |
| What documents to gather | A printable checklist of builder registration documents. |
| How to give buyers a repeatable financing path | Prequalification, registration on file, a standard budget format, and draw expectations. |
| What to hand a buyer | A printable checklist builders can give buyers who need construction financing. |
| How Realtors can help buyers build | Lot sales, contingency timing, one-time close basics, and referrals. |
| Financing for a builder's own projects | Business-purpose ground-up construction for eligible builders and investors. |
| One-time close for buyers | How buyers finance the lot, build, and permanent mortgage with one closing. |
Short answer: most buyers building a primary residence use a one-time close (construction-to-permanent) loan through FHA, VA, USDA, or conventional PRMG programs, depending on eligibility.
On FHA and VA one-time close, buyers in most cases make no mortgage payments during construction because the builder pays interim interest, which is built into the contract price. The construction loans overview compares the options.
Short answer: four rules come up on almost every one-time close file.
Home type matters too. Site-built and modular homes are generally eligible, multi-section manufactured homes on a permanent foundation may be eligible with added requirements, and single-wide, barndominium, post-frame, log, metal, and container homes are commonly ineligible on government one-time close. Details: manufactured and modular construction loans and construction loan requirements.
Short answer: possibly, through business-purpose PRMG programs for eligible builders and investors, which are separate from the consumer one-time close loans your buyers use.
Ground-up programs may finance up to about 85 percent of cost, capped around 70 to 75 percent of completed value, with interest charged on drawn funds and terms commonly 12 to 24 months, subject to underwriting. Many programs look for two or more completed ground-up projects. See builder construction loans. Consumer one-time close programs do not finance spec homes.
Short answer: yes. Ken is based in Sacramento and works with builders across Northern California, New Jersey, and nationwide where PRMG is licensed.
Local pages: Sacramento, Placer County, El Dorado County, California, and New Jersey.
Where available: PRMG programs are available in every state where PRMG is licensed, which is all states except New York, including California and New Jersey, subject to eligibility and program guidelines. In California, permits are typically required before a one-time close loan closes.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
A set of guides and printable checklists for builders, general contractors, modular and manufactured retailers, developers, and Realtors who work with buyers using construction loans.
A documentation review of a builder's license, insurance, business information, and experience to confirm eligibility for a construction loan program. It is not an endorsement of the builder.
Commonly no. Registration is typically completed once and reused for later projects, as long as license and insurance documents stay current.
Through draws released as work is completed and inspected. On site-built one-time close loans there are commonly about 5 draws, with up to 90 percent paid before the final draw.
In most cases the builder pays the interim interest, and it is built into the contract price.
No. One-time close is for a buyer's own home. Builders may explore business-purpose programs for their own projects.
Not on one-time close programs. A licensed builder must act as the general contractor.
Modular homes are generally eligible, and multi-section manufactured homes on a permanent foundation may be eligible with added requirements.
Yes. VA construction loans require the builder to have a VA builder identification number.
In every state where PRMG is licensed, which is all states except New York, subject to program guidelines.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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