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Home Building and Remodeling Loans

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

We’re here to help every step of the way.

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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.

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. 

Icon of a computer monitor and smart phone

Ready to apply online?

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

Icon of a person with a speech bubble in front of them

Speak with a loan advisor.

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

Icon of a person standing next to a map location symbol

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. 

Everything you need to know about home loans

Whether you're an expert or a first-timer, find the ins and outs of mortgages here. Learn what it takes to qualify for a loan, discover the different types of mortgages, and finally understand what an escrow account is for. 

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Home loan basics

Learn how mortgages work, the differences between adjustable and fixed interest rates, and more.

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The mortgage process

Get a step-by-step breakdown, from prequalifying to inspections to closing and beyond. 

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Mortgage Loan Calculators

Calculate your house-hunting budget, monthly payments, closing costs, and more.

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Current mortgage rates

View our competitive mortgage rates for all types of home loans.

7th Largest Bank Mortgage Originator

Inside Mortgage Finance, Q3 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.

You may also be interested in:

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Adjustable rate mortgages

Don't let the word “adjustable” keep you away from a great loan. Find out if an ARM is right for you.

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Fixed rate mortgages

No surprises here, just peace of mind from consistent monthly payments that fit into your budget. 

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Jumbo loans

Discover how a jumbo loan can be a smart way to finance higher-priced homes. 

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.

Flagstar Bank NMLS# 417490