Builder Resource Center

Homebuyer Financing Checklist: What Builders Can Hand Buyers Who Plan to Build

✓ Written and reviewed by Ken Clark Jr., Certified Mortgage Advisor, NMLS #225375 . Published September 27, 2026 . Updated September 27, 2026

A one-page checklist for buyers building a new home.

Builders can print this checklist and hand it to buyers who need a construction loan. It walks buyers through prequalification, the documents to gather, lot paperwork, the timeline, and what to expect during construction. Requirements depend on the program and are subject to underwriting.

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Short answer: Buyers who plan to build should prequalify before signing a build contract, gather income, asset, and ID documents, collect lot paperwork, and expect about 60 to 75 days or more from application to closing. During construction, funds are released to the builder in stages after inspection, change orders are generally paid out of pocket, and the loan converts to the permanent mortgage at completion without requalifying on one-time close.

At a glance

First: prequalify before signing a contract.
Gather: income, assets, ID, and lot papers.
Timeline: commonly 60 to 75 days or more to close.
During construction: draws after inspection.
At completion: conversion without requalifying on one-time close.

On this page

How should buyers use this checklist?
Step 1: Prequalify
Step 2: Gather your documents
Step 3: Gather lot paperwork
Step 4: Confirm your builder's items
Step 5: Know the timeline
Step 6: Know what to expect during construction
FAQs

How should buyers use this checklist?

Short answer: check off each item and bring the list to your first call. Having documents ready commonly shortens the process.

Buyers can read the full one-time close guide for more detail.

Step 1: Prequalify

☐Schedule a prequalification call before signing a build contract
☐Discuss which program may fit: FHA, VA, USDA, or conventional one-time close
☐Review credit (minimums commonly start around 620 on FHA and VA one-time close, depending on program guidelines)
☐Confirm the down payment plan, or whether land equity may help
☐Veterans: request your VA Certificate of Eligibility
☐Rural lots: check USDA eligibility by address

Step 2: Gather your documents

☐Government-issued photo ID
☐Pay stubs covering the most recent 30 days
☐W-2s for the last two years (tax returns if self-employed or as requested)
☐Bank and asset statements for the last two months
☐Explanation of any large deposits
☐Current housing payment and landlord or mortgage information

Step 3: Gather lot paperwork

☐Lot purchase contract, or deed if you already own the land
☐Payoff statement for any existing land loan
☐Survey or legal description, if available
☐Utility, well, and septic information for rural lots
☐Permits or permit status (in California, typically required before closing)

More: buying land and building and land equity.

Step 4: Confirm your builder's items

☐Builder has completed or started builder registration
☐Signed fixed-price, turnkey contract
☐Plans, specifications, and line-item budget
☐Builder's risk insurance
☐VA loans: builder has a VA builder ID

Builder registration is a documentation review for program eligibility. It is not an endorsement, recommendation, or guarantee of any builder's work.

Step 5: Know the timeline

Stage	Commonly
Application to closing	About 60 to 75 days or more
Construction, government one-time close	About 9 months, up to 12 case by case
Construction, conventional one-time close	6, 9, or 12-month terms
Conversion	At completion, without requalifying

Step 6: Know what to expect during construction

Payments: on FHA and VA one-time close, in most cases no mortgage payments during construction. USDA commonly uses a payment reserve funded at closing. Conventional commonly charges interest-only on drawn funds.
Property taxes: typically your responsibility as they come due.
Draws: the builder is paid in stages after inspection. See the draw process.
Change orders: generally paid out of pocket, because the loan amount cannot increase after closing.
Keep credit steady: avoid new debt until the loan converts.

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.

Frequently asked questions

Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.

When should a buyer prequalify?

Before signing a build contract, so the price fits the program the buyer qualifies for.

What documents do buyers need?

Commonly ID, recent pay stubs, two years of W-2s or tax returns, two months of bank statements, and lot paperwork.

How long does closing take?

Commonly about 60 to 75 days or more from application.

Do buyers make payments during construction?

On FHA and VA one-time close, in most cases no. USDA commonly uses a payment reserve, and conventional commonly charges interest-only on drawn funds.

Who pays for change orders?

Generally the buyer, out of pocket, because the loan amount cannot increase after closing.

Do buyers requalify when the home is done?

No, on one-time close the loan converts to the permanent mortgage without requalifying.

Can buyers use land they already own?

Yes, and land equity may help with the down payment, depending on program guidelines.

Can builders print this checklist?

Yes. Use the print button at the top of the checklist.

Related programs and guides

Sources consulted

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.

About the Author: Ken Clark Jr.

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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