What mortgage programs are available in Miami?

Lifetime Capital Funding offers FHA (3.5% down, $667K Miami-Dade 2026 limit), VA (0% for veterans), conventional (3-5% down via HomeReady or standard), USDA (0% for eligible rural areas, $433,020 limit), jumbo up to $20M, DSCR investment loans, bank statement loans for self-employed buyers, foreign national programs (25-40% down, no US credit required), fix-and-flip loans, bridge loans, reverse mortgages, and HELOCs. We serve all of Miami-Dade and Broward counties.

What is a DSCR loan and who qualifies?

A DSCR loan qualifies real estate investors based on the rental income of the investment property, not personal income or tax returns. If the property earns enough rent to cover at least 1.0x the monthly mortgage payment (DSCR of 1.0+), you may qualify. Minimum 20-25% down, 660+ credit score. No W-2s, no tax returns, no employment verification. Ideal for self-employed investors, foreign nationals, and buyers with multiple properties.

What is a bank statement loan?

Bank statement loans let self-employed borrowers qualify using 12-24 months of personal or business bank deposits instead of tax returns. Lenders apply an expense factor, typically 25-50% depending on business type, to estimate qualifying income. This works well for business owners who write off expenses and show lower net income on paper than they actually earn. Requirements: 620+ credit, 2+ years self-employment, and usually 10-20% down depending on the property.

Can non-US citizens get a mortgage in Miami?

Yes. Foreign national programs let non-US citizens purchase property in Miami and South Florida without a Social Security number or US credit history. Requirements typically include 25-40% down depending on property type, a valid passport, 12-24 months of bank statements showing assets and income, and proof of foreign address or current visa status. DSCR rental income qualification is also available for foreign investors who want to avoid income documentation entirely.

What is the difference between FHA and conventional loans?

FHA loans require 3.5% down with a 580 credit score and have mandatory mortgage insurance for the life of the loan. Conventional loans require 3-5% down with a 620+ score and allow PMI removal at 20% equity. FHA is better for lower credit scores; conventional is better for borrowers with 20%+ down or strong credit.

What is a one-time close construction loan?

A one-time close (OTC) construction loan — also called construction-to-permanent financing — combines the construction phase and the long-term mortgage into a single loan with one closing, one set of closing costs, and one loan approval. You lock your permanent rate at the start and automatically convert to a traditional mortgage when construction is complete. This eliminates the risk of losing your rate or facing a second round of qualification when you're ready to move in.

What is the difference between one-time close and two-time close construction loans?

A one-time close has a single closing for both the construction loan and the permanent mortgage, meaning you pay closing costs once and your rate is locked upfront. A two-time close (stand-alone construction loan) requires two separate closings: one for the construction loan and a second when the project is complete and you convert to permanent financing. Two-close loans offer more flexibility and potentially better permanent rates at conversion, but carry the risk that you may not qualify for the permanent loan if your financial situation changes.

What builder requirements apply to construction loans in Miami?

In Miami, builders must be licensed by the Florida Department of Business and Professional Regulation (DBPR) and hold a valid Miami-Dade County building contractor license. Lenders typically require builders to have a minimum of 2 years of general contracting experience, provide general liability insurance (often $1M+ per occurrence), demonstrate a track record of completed projects, and submit detailed construction plans, specifications, and a fixed-price or cost-plus contract. Some lenders maintain an approved builder registry and may require pre-approval before a loan can be structured around a specific contractor.

How does a construction loan draw schedule work?

A draw schedule is a pre-agreed payment plan that releases construction funds in stages as milestones are completed. Typical milestones include foundation completion, framing, rough mechanicals (plumbing, electrical, HVAC), drywall and insulation, and final completion/certificate of occupancy. Before each draw is released, the lender sends an inspector (or reviews photos and documentation) to confirm the work is done according to plan. In South Florida, permitting timelines with Miami-Dade or Broward County can affect how quickly draws proceed, so building buffer time into the schedule is important.

What down payment is required for a construction loan in Miami?

Down payment requirements for construction loans typically range from 10% to 25% depending on the program and borrower profile. Conventional one-time close construction loans often require 10–20% down. FHA one-time close construction loans allow as little as 3.5% down with a 580+ credit score, making them one of the most accessible options for Miami buyers who want to build. VA construction loans offer 0% down for eligible veterans. Jumbo construction loans for high-value Miami builds often require 20–30% down.

Do I pay a mortgage during construction?

During the construction phase, you typically pay interest only on the funds that have been disbursed — not on the full loan amount. As draws are released to the builder, your interest-only payment grows. Once construction is complete and the loan converts to permanent financing, you begin making full principal and interest payments on the total loan amount. This interest-carry period generally lasts 6–18 months depending on the project size and timeline. Budgeting for both the interest-carry payments and your current rent or housing costs during construction is a critical planning step.

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Construction Loans Miami: Complete Guide to New Build Financing in 2026

Published: May 2026 | Last Updated: May 2026 · Category: Loan Programs · NMLS #2583712

Construction loans work differently from standard mortgages — and in Miami, where lot prices, labor costs, and permitting timelines add complexity to every project, getting the financing structure right from the start matters a lot. This guide covers the main construction loan types, how draw schedules work, what lenders look for in Miami-area builders, and what borrowers need to qualify.

How Construction Loans Work

A construction loan is a short-term credit facility that funds the building of a new home in stages. Unlike a purchase mortgage that releases all funds at once, construction financing releases money incrementally as your builder completes specific phases of work. This is called a draw schedule.

During the construction phase, you typically pay interest only on the disbursed funds. Once the home is complete and a certificate of occupancy is issued, the construction loan either converts to a permanent mortgage or is paid off with a separate permanent mortgage.

Key Insight: In Miami's competitive new construction market, having your construction financing pre-approved before engaging a builder gives you negotiating credibility and helps avoid delays caused by last-minute financing scrambles.

Types of Construction Loans Available in Miami

Construction-to-Permanent (One-Time Close)

The one-time close construction loan — often called C2P or OTC — is the most popular option for buyers building a primary residence. It combines the construction financing and the permanent mortgage into a single transaction with one closing and one set of closing costs. Your interest rate for the permanent loan is typically locked at closing, so you are protected from rate increases during the build.

After construction is complete, the loan automatically converts to a 15- or 30-year mortgage without a second closing. This simplicity is the biggest advantage. The tradeoff is that one-time close programs require full underwriting upfront — you must qualify based on the completed home's projected value and your current financial picture before a single nail is driven.

Stand-Alone Construction Loan (Two-Time Close)

A stand-alone construction loan covers only the build phase. When construction is finished, you take out a separate permanent mortgage to pay off the construction loan — that second transaction is the "second close." Two-close loans give you flexibility to shop for the best permanent rate at the time of conversion, which can be an advantage if rates have dropped during construction. They are also sometimes easier to qualify for because the permanent loan is underwritten separately.

The downsides: you pay closing costs twice, you carry the risk of qualifying for the permanent loan under whatever market conditions exist at completion, and if your financial situation changes during construction, you may not qualify at the second close.

FHA One-Time Close Construction Loan

For borrowers who want to build with a smaller down payment, FHA offers a one-time close construction program that allows 3.5% down with a 580+ credit score. The FHA loan limits for Miami-Dade County apply ($667,000 for a single-family in 2026), which constrains this program to more modestly priced builds. FHA construction loans require the same FHA MIP as purchase loans, including lifetime annual MIP for most borrowers.

VA Construction Loan

Eligible veterans can build with 0% down using a VA one-time close construction loan. The VA loan limit was eliminated for most veterans in 2020, so higher-value builds are possible without a down payment for borrowers with full entitlement. VA construction loans require builder approval through the VA, and the property must meet VA minimum property requirements at completion.

🏠 Conventional OTC

10–20% down. Best for buyers with strong credit. Rate locked at closing.

🏛️ FHA OTC

3.5% down with 580+ credit. FHA loan limits apply. Includes FHA MIP.

🎖️ VA OTC

0% down for eligible veterans. Builder must be VA-approved.

🔄 Two-Time Close

More flexibility at conversion. Two sets of closing costs. Rate risk at second close.

Builder Requirements for Construction Loans in Miami

Lenders do not just qualify the borrower — they also qualify the builder. In Miami-Dade County, builders must meet both state and local licensing requirements, and lenders impose their own additional criteria:

Florida DBPR license: Active General Contractor (CGC) or Building Contractor (CBC) license issued by the Florida Department of Business and Professional Regulation
Miami-Dade local license: For permitted construction work within the county
Experience: Minimum 2 years of verifiable general contracting history, ideally with completed projects similar in scope to yours
Insurance: General liability ($1M+ per occurrence, $2M aggregate), workers' compensation, and builder's risk during construction
Financials: Some lenders require builders to demonstrate financial stability — bank statements or business financials showing they can carry the project between draws
References: Lenders or HUD (for FHA programs) may contact prior clients or verify completion of previous projects

If you already have a builder in mind, check early whether they are on your lender's approved list. Getting a builder approved can add 2–4 weeks to your timeline if the lender has not worked with them before.

How the Draw Schedule Works

The draw schedule is the payment plan your lender uses to release construction funds to your builder. Standard milestones for a single-family construction project:

Draw	Milestone	Typical % of Budget
Draw 1	Foundation / slab complete	10–15%
Draw 2	Framing complete, roof sheathed	20–25%
Draw 3	Rough plumbing, electrical, HVAC in	15–20%
Draw 4	Insulation, drywall, windows installed	15–20%
Draw 5	Final completion, certificate of occupancy	25–35%

Before each draw is released, the lender sends an independent inspector to verify the work is complete. In Miami-Dade, permitting inspections by the county often need to happen before the lender's inspector — coordinate your permit inspection and draw request timing with your builder to avoid cash flow gaps.

Ready to Finance Your Miami Build?

Lifetime Capital Funding works with Miami-area builders on construction-to-permanent, FHA, and VA construction loans. All loans subject to approval. NMLS #2583712.

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What Borrowers Need to Qualify

Qualifying for a construction loan is generally more involved than qualifying for a standard purchase mortgage. Lenders underwrite both the borrower and the project:

Credit score: Conventional one-time close programs typically require 620–680+. FHA allows 580+. VA has no official minimum but most lenders prefer 620+.
Down payment / equity: 3.5%–20% depending on program. Land equity often counts if you own the lot outright or nearly so.
Income documentation: Full documentation required — W-2s, tax returns, pay stubs, or business financials for self-employed borrowers.
Reserves: Lenders want to see that you can cover interest-carry payments during construction plus your existing housing costs. 6–12 months of reserves is common.
Project plans: Approved architectural plans, a signed construction contract, and permits (or permit applications) from Miami-Dade Building Department.

Frequently Asked Questions

Lifetime Capital Funding LLC. NMLS #2583712. All loan programs are subject to credit approval, income verification, property qualification, and builder approval. Construction loan programs require approved plans, permits, and contractor documentation. Rates and terms vary and are not guaranteed. Not a commitment to lend.

More resources for Miami buyers and builders: