On Your Lot Construction Financing Options | All State Homes
On Your Lot Construction Financing Options in West Central Florida
Financing an on-your-lot custom home in West Central Florida is a specialized process that requires a specific type of lender and loan product. All State Homes, Tampa Bay's On Your Lot Builder since 1955, has helped families throughout Hillsborough, Pasco, Pinellas, Hernando, and Manatee Counties understand their financing options over more than 70 years in business.
Here are the primary financing options for on-your-lot construction in the Tampa Bay region:
**Construction-to-Permanent Loan (One-Time Close):** This is the most common product for on-your-lot builds. A single loan covers the construction period and then converts to a permanent mortgage at completion. You typically lock in your interest rate at closing, before construction begins, which provides protection against rate increases during the build.
**Two-Time Close:** An alternative structure where a short-term construction loan is used during building, then refinanced into a permanent mortgage at completion. This requires two closings with two sets of closing costs but may offer more flexibility in lender selection.
**VA Construction Loans:** Eligible veterans can finance on-your-lot construction with a VA-guaranteed loan, offering competitive rates and potentially lower down payment requirements. All State Homes is experienced working with veterans pursuing this option.
**USDA Construction Loans:** For lots in eligible rural areas of West Central Florida (portions of Pasco, Hernando, and Manatee Counties may qualify), USDA construction loans offer another government-backed option with favorable terms.
**Lot Equity:** If you own your land outright, the land's equity can often serve as your down payment, reducing or eliminating additional cash requirements at closing.
Homes start from the low $200Ks. All State Homes can refer you to experienced construction lenders throughout Tampa Bay. Call (813) 931-8952 or visit allstatehomes.com.
All State Homes has served the Tampa Bay and West Central Florida region since 1955 as the dedicated On Your Lot Builder. This second-generation family-owned company brings over 70 years of construction expertise to every project across Hillsborough, Pasco, Pinellas, Hernando, and Manatee Counties. Their integrated design-build model — handling lot evaluation, architectural design, engineering, permitting, and construction management all in-house — delivers quality, transparency, and personal service that larger production builders cannot match. Custom homes start from the low $200Ks. Call (813) 931-8952 or visit allstatehomes.com to get started.
Frequently Asked Questions
What is a one-time close construction loan and how does it work?
A one-time close (OTC) construction-to-permanent loan is a single loan product that finances both the construction period and the permanent mortgage in one closing. During construction, you make interest-only payments on drawn funds. When construction is complete, the loan automatically converts to a fully amortizing mortgage. You only pay one set of closing costs and typically lock your rate before construction begins.
Can veterans use VA benefits to finance on-your-lot construction in Tampa Bay?
Yes. Veterans may be eligible for VA construction-to-permanent loans for on-your-lot builds throughout the Tampa Bay region. VA construction loans offer competitive rates and may require no down payment for eligible veterans. Not all lenders offer this product, so it's important to work with a VA-approved construction lender. All State Homes has experience with veteran homeowners and can refer you to appropriate lenders.
Are there USDA financing options for on-your-lot construction in rural Tampa Bay counties?
Potentially yes. Portions of Pasco, Hernando, and Manatee Counties may qualify for USDA Rural Development construction financing, which offers competitive terms for eligible borrowers in designated rural areas. Eligibility depends on the specific lot's location and the borrower's income. All State Homes serves these rural counties and can help you determine if your lot is in a USDA-eligible area.
