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Custom Construction Loans

Dream It, Design It, Build It With One Loan
April 23, 2026 by
Homestead Capital Partners, Paul Dolphin

You're working with an architect. Maybe you are one. The house is designed to the quarter inch, the elevations are drawn, the spec book is 80 pages. What you need is a lender who can read a G702 without flinching and close before the build schedule slips.

OTC Construction Loans for Architect-Led and Design-Build Projects

Design-forward custom homes have lender requirements that generic construction products can't meet. The drawings are more detailed. The spec book carries more cost. The finish schedule assumes access to specialty trades. And the appraiser has to understand that a curtain-wall glazing package is not a "custom feature upgrade" — it's the reason the house exists.

Our OTC Construction Loan, originated through NEXA Mortgage's wholesale network, is designed for builds where the architect and the GC are either the same firm or working in tight coordination. Single close. Interest-only during the build. Auto-conversion to the permanent mortgage on CO.

What Design-Build and Architect-Led Clients Need From a Lender

  • Appraisers who've seen Passive House, net-zero, and modernist builds and can comp them honestly
  • Draw schedules that map to the architect's phase billing (SD / DD / CD / CA) as well as the GC's AIA G702
  • Soft-cost coverage that includes architect fees, engineering, and energy-model certification
  • Tolerance for custom finishes (specialty glazing, imported stone, millwork) without "lender value-engineering" the design out
  • Change-order processes that don't stall the build when the design evolves

Construction Budget

Build your project budget. Land + hard + soft + contingency.

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$
12%
5%
Total Project Cost
Soft Costs
Contingency
Per-Sq-Ft Rate
Cash Needed at Close (est.)

Get Your Full Report

Enter your info and we'll email you a detailed report with your scenario + next steps. A specialist will follow up.

By submitting, you acknowledge the Privacy Policy, Terms, and agree to electronic communications from Homestead Capital Partners (NMLS #2587985) and NEXA Mortgage, LLC (DBA NEXA Lending) (NMLS #1660690).

This is an estimation tool. Your actual loan terms will be determined after full application and underwriting. Not a commitment to lend.

Budget Discipline — The Conversation Your Lender Needs Before Close

Design-build projects go over budget for predictable reasons: finish upgrades, site conditions discovered after excavation, and owner change orders late in the build. A lender who has closed architect-led builds knows to stress-test the budget before close by scrutinizing the allowances in the contract — not after.

Use the OTC calculator suite to model your full stack (land, hard, soft, contingency) and bring that output to your first LO call. It shortens the discovery phase by at least a week.

Companion Reading

For the general guide to custom construction loans, see our Custom Construction Loans — Complete Guide. If your project is a tear-down-rebuild on an infill lot, read Tear-Down Rebuild Loans. If you're financing acreage and a primary structure outside a subdivision, see USDA Rural Construction Loans.

Product + Program Matrix

  • Conventional OTC: Fannie Mae / Freddie Mac eligible, primary + second home + investment
  • VA OTC: $0 down for qualifying veterans, primary residence only
  • Jumbo OTC: above conforming limits, stricter reserves, available in most states
  • Owner-builder: primary residence only, additional documentation required

Every program above is originated through NEXA Mortgage LLC (NMLS #1660690), with Homestead Capital Partners (NMLS #2587985) as the consumer-facing brand. Licensed in 47 states.

Talk to an OTC Construction Specialist

Tell us about your project. A Homestead Capital Partners construction-loan specialist (routed through NEXA Mortgage's wholesale lender network) will review your scenario and return with program fit, rough timeline, and the documents needed to move forward.


Homestead Capital Partners NMLS #2587985 | NEXA Mortgage LLC NMLS #1660690 | Licensed in 47 states (excluding NY and GA). Equal Housing Lender. Content is informational and not a commitment to lend. All loan approvals are subject to underwriting, appraisal, title, and credit review. Program features, eligibility, down-payment, reserve, and LTV requirements are verified against United Wholesale Mortgage (UWM) product guides and Reveal Lending non-QM guidelines. Not all applicants will qualify. Rates, points, and terms are not quoted in this article and require a written loan estimate under TILA/Reg Z prior to application.

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