Residential Construction-Only Loan

What is it?

DirectLenderMatch classifies Residential Construction-Only Loan under the financing form “Short-term construction loan.” Its typical use in this directory is: Build home before obtaining permanent financing.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Land + construction draws. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Build home before obtaining permanent financing.

What backs or supports it?

Land + construction draws.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Loan or credit structure

Workbook classification: Yes. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.

Verified lenders or providers

Direct mortgage lender

New American Funding

Related provider — exact subtype confirmation advised

Its flagship product is one-time-close; verify construction-only availability before launch.

New American Funding currently provides construction financing; its materials describe short-term construction draw lending.

Official evidence page →

Last verified: 2026-08-23

Direct mortgage/construction lender

U.S. Bank National Association

U.S. Bank currently offers construction loans and describes construction loans as short-term loans funding new-home construction through draws.

Official evidence page →

Last verified: 2026-08-23