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Home Building and Remodeling Loans

Home construction projects can be complex, so we made the financing simple.

Great mortgage solutions for building and remodeling

The right financing will take some of the stress out of your big project. Choose a home renovation and home-building loan that keeps closing costs down and features interest-only payments until the construction is complete.

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Home renovations

A great loan if you're buying a fixer-upper or updating your current home.

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New home construction

Interest-only payments during the construction period.

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Construction draw loan

Offering a variety of permanent loans once your new home is complete.

Let’s make your dream home happen

Building or renovating a home is exciting, but it comes with hundreds of decisions. Finding the right lender is an easy one. Flagstar offers different types of mortgages to fit your needs and your budget, including home renovation loans, new home construction loans, and home remodeling loans. Contact us to find a construction loan that's perfect for your project. 

  • Conventional, jumbo, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Federal Housing Administration (FHA)  loans
  • Fixed and adjustable interest rates
  • Interest-only payments during construction
  • One loan to cover home price and renovation costs
  • Loan amounts up to $4 million for building a primary residence

Available construction loans

Creating the home you want is possible. We'll help you find the right conventional, jumbo, or FHA loan to see you through the construction phase and beyond.

two-in-one loan

Home renovation loan

This two-in-one loan covers the home price and renovation costs.

  • FHA 203(k) Standard Loan1: No limit on renovation funds as long as the total loan amount is within FHA guidelines
  • FHA 203(k) Limited Loan2: Up to $35,000 for cosmetic updates like flooring, painting, and appliances 
  • HomeStyle® Renovation Loan3: Fixed interest rate for 15 or 30 years; any leftover renovation funds pay down the principal balance

Up to $3 million

Construction draw

This special loan gives you the opportunity and flexibility to construct a new home. 

  • Loan amounts up to $3 million for primary residence
  • Interest-only payments during construction4 
  • A variety of mortgages to choose from once the build is complete5

Save on closing costs

One-close construction loan

Build the home of your dreams and make interest-only payments during construction.

  • One-close conforming loan6: Save with just one set of closing costs and fees
  • One-close jumbo fixed loan7: Simple, flexible draw process for building a higher priced home
  • One-close ARM7: A fixed interest rate for a limited period of years at beginning of the loan

Let’s find the perfect mortgage for you

If you're like most people, buying a home is the largest purchase you'll ever make, but you don't have to go it alone. Talk to the friendly, competent, and trustworthy experts at Flagstar to find a home loan that's right for you. 

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Ready to apply online?

Start your loan application here. Don't worry—if you get stuck, we're just a phone call away.

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Speak with a loan advisor.

We'll help you find the right loan, start your application, and answer your questions.

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Find a loan advisor.

Connect with a local expert and meet remotely or at a nearby branch. We'll guide you through the entire home loan process.

Manage your loan your way with MyLoans®

Sign in to MyLoans anytime to make payments, view your statements, sign up for paperless statements, and more. Everything you need is right at your fingertips. 

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7th Largest Bank Mortgage Originator

Inside Mortgage Finance, Q4 2023

Why choose Flagstar?

We're an award-winning lender with more than 35 years of experience connecting customers to the right mortgage solution for their needs. With hundreds of conventional, jumbo, and government-backed options available, we'll find the right home loan for you, too. Whether you are buying a new home or ready to refinance, you can trust our simple application and streamlined process to get you to closing on time.

Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval, and product requirements, including loan to value, credit score limits, and other lender terms and conditions. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend. A loan advisor will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.

1Purchase or rate-term refinance and rehabilitation of a primary residence. Program terms available may vary based on the state or county in which the financed property is located. Minimum of $5,000 renovation work. Rehabilitation work must be completed within 6 months of closing. Not available in Puerto Rico or the US Virgin Islands. CONSIDERATIONS: Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.

2Purchase or rate/term refinance and renovation of a 1- to 4-Unit primary residence. Program terms available may vary based on the state or county in which the financed property is located. No minimum repair cost required. Maximum repair cost of $35,000. Renovations must be completed within 6 months of closing. Not available in Puerto Rico or the U.S. Virgin Islands. CONSIDERATIONS: Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.

3Purchase renovation or rate/term refinance renovation of a primary residence, second home, or investment property. Full builder third-party contract required. Homeownership education may be required. Not available in Alaska or the U.S. Virgin Islands. CONSIDERATIONS: Renovation requires a full builder third-party contract. A loan-to-value ratio above 80% may result in a need for mortgage insurance. If mortgage insurance is required, the amount of your payment will increase. Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Please consult your tax advisor regarding the deductibility of interest.

4Purchase or renovation of a primary residence or second home. Requires a fully executed, third-party builder contract. Construction term of 12 months. Borrower must make interest-only payments during the construction term. Maximum loan amount may vary due to the subject property's state and county. Construction loan approval subject to end loan commitment. Not available in Puerto Rico. or U.S. Virgin Islands.

Loan amounts up to $3 million are eligible in specific counties: CA Counties: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sonoma, Ventura. MI Counties: City of Birmingham and City of Bloomfield Hills. WA Counties: San Juan and King County. WY Counties: Teton and Albany.

Mortgage insurance (MI) is not required on the construction loan but may be on the end loan for an LTV (Loan-to-value) greater than 80%. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.-month construction loan period. Borrower must close on the end loan after construction is complete.

5Borrower must qualify for end loan financing prior to construction, and upon completion of the construction of the dwelling.

6Construction to permanent financing for primary residence and second homes. Conforming one-close 9- or 12-month construction term program allowing for payment of interest-only during construction. Note to be modified upon completion of improvements to a fully amortized principal and interest payment. Soft costs (architectural, engineering and permit fees) may be financed, closing costs may not. Full third party builder contracts only. Not available in U.S. Virgin Islands.

Borrower must have an escrow waiver to be eligible for payments of interest-only during construction. Borrower must have put down a minimum of 30% and have a sufficient credit score to avoid requalification at completion of construction. A loan-to-value ratio above 80% may result in a need for mortgage insurance. If mortgage insurance is required, the amount of your payment will increase.

7Construction-to-permanent financing for primary residence and second homes. During construction phase, interest only payment based on amount drawn will be due. If escrows are required, monthly payment for taxes and insurance will be due. When construction completes, Note will be modified to collect a fully amortized payment for principal and interest. Construction term is based on time to complete in builder contract or project size if completion time is not specified. Project size is based on the amount of soft costs (such as architectural, engineering and permit fees) and hard costs to complete construction. Land value or closing costs are not included. Subordinate financing not allowed. Full third-party builder contracts required. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing. Not available in Puerto Rico or the U.S. Virgin Islands. Construction term up to 12 months is available based on builder contract or project size of $1.5M or less.

Flagstar Bank NMLS# 417490