The process: 1) plans + lot → 2) budget with builder → 3) apply & pick C2P vs construction-only → 4) completed-value appraisal → 5) term sheet → 6) close & fund → 7) build with inspection draws → 8) convert or refi. See Requirements.
On this page
The 8 steps to a finished build
Finalize plans & lot
Lock architectural plans, secure the lot, confirm zoning, permits, entitlements.
Build the budget with your builder
Fixed-price contract + line-item budget from a licensed builder + soft costs + 15–20% contingency.
Apply & choose the structure
Submit plans, budget, builder credentials, financials. Pick C2P (one close) or construction-only. Compare →
Get the completed-value appraisal
Appraised from the plans (no finished home yet); value + cost + DSCR size the loan.
Review the term sheet
Loan amount, LTC, rate, term, draw schedule, reserves, recourse — shopped across lenders. Rates →
Close & fund
Sign; C2P locks the permanent rate now. Land funds; the rest is held for draws.
Build with inspection-based draws
Each milestone is inspected, then that draw releases; interest only on funds disbursed.
Convert or refinance to permanent
C2P converts automatically; construction-only is refinanced (developers often after DSCR stabilization).
What's needed at each stage
| Stage | What you provide / expect |
|---|---|
| Plans & lot | Architectural plans, lot, zoning/permits |
| Budget | Fixed-price contract, line-item budget, contingency |
| Application | Plans, budget, builder credentials, financials |
| Appraisal | Completed-value appraisal from plans |
| Term sheet | Loan amount, LTC, rate, draws, reserves, recourse |
| Closing | Signed docs; C2P locks perm rate |
| Build | Milestone completion + inspection → draws |
| Completion | Certificate of occupancy; convert or refinance |
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.