Homerun
Finance Your Build.
Building a home or steel structure is a major investment. We've researched the loan products our customers actually use — construction-to-perm, USDA, VA, owner-builder, and personal loans — so you can choose the path that fits your situation.
Financing Paths
Five main loan products fund kit-built construction. Pick the one that matches your project size, credit profile, and ownership plan.
Construction-to-Permanent
The most common loan for new builds. Funds disburse in draws as milestones complete, then convert to a regular mortgage at the end. Best for owner-occupied homes with land already secured.
USDA Rural Development
Section 502 loans for eligible rural addresses with no down payment. Income must fall under USDA limits for your county. Single-close construction USDA loans exist through participating lenders.
VA Construction
For eligible veterans and active duty. Less widely available than VA purchase loans — you'll need a lender that specifically does VA construction. Most require a builder approved by the lender.
Owner-Builder Loan
For buyers acting as their own general contractor. Harder to find — most banks don't offer them. Specialty lenders like Normandy Mortgage and Built Mortgage do.
Personal Construction Loans
Unsecured personal loans for smaller projects (under $100K) or when traditional construction loans don't fit. Higher rates than secured loans, but faster, simpler, no draw schedule. See partner comparison below.
Personal Loan Partners We Recommend Researching
For projects that don't fit a construction-to-perm structure, two lenders our customers frequently use:
BHG Financial
Best for high-earning professionals (doctors, lawyers, business owners, established self-employed) who need more than $100K. Their concierge service handles complex income streams. Loans up to $250K can cover a full kit plus delivery and labor.
Apply with BHG Financial ↗LightStream
Best for borrowers with strong credit and asset history. No origination, late, or prepay fees, plus a Rate Beat program that matches competitor rates minus 0.10%. Often the cheapest path for high-credit borrowers.
Apply with LightStream ↗Frequently Asked Questions
What's the best loan for a kit-built home?
For most owner-occupied kit homes, a construction-to-permanent loan is the standard path — funds disburse in draws as construction milestones complete, then convert to a regular mortgage at the end. USDA Rural Development loans (0% down) and VA loans (0% down for veterans) work in qualifying situations. For projects under $100K, personal loans through BHG Financial or LightStream often fill the gap when traditional construction loans don't fit.
Can I get financing if I'm acting as my own general contractor?
Yes, but it's harder. Most banks won't lend to owner-builders because of the perceived risk. Specialty lenders like Normandy Mortgage, Built Mortgage, and several regional credit unions offer owner-builder construction loans. Expect 25–30% down, credit scores of 720+, detailed plans, and documentation of your construction-management experience. Personal loans from BHG or LightStream are an alternative path for smaller projects.
What credit score do I need to finance a house kit?
Construction-to-perm loans typically require a 680+ credit score. Owner-builder loans usually require 720+. BHG Financial accepts 640+, while LightStream typically requires 660–700+. The lower your credit score, the higher the rate — and below 640, options are very limited. Rebuilding credit before applying often saves more in interest than it costs in time.
Does Homerun Building Supply offer financing directly?
No — Homerun is not a lender and does not originate, broker, or guarantee any loan. We provide research and starting-point recommendations on outside lenders that have worked well for our customers. All terms, eligibility, rates, and fees are determined solely by the lender. Always review the lender's full terms and consult a licensed financial advisor before borrowing.
How much should I have for a down payment?
Construction-to-perm loans typically require 20% down on the total project (land + construction). USDA and VA loans can go to 0% down for qualifying borrowers. Owner-builder loans usually require 25–30% down. Personal loans don't require a down payment but lend smaller amounts at higher rates. Most successful kit-build budgets keep an additional 10–15% contingency outside the loan to cover discovered conditions and change orders.
Can I roll the cost of land into a construction loan?
Yes — most construction-to-permanent loans allow you to combine land purchase and construction into a single closing. This is usually cheaper than two separate transactions. If you already own the land, the equity counts toward your down payment. If you bought the land with cash recently, some lenders will let you cash-out refinance and roll those funds into the construction loan.
How long does construction loan approval take?
Plan for 30–60 days from application to closing on a typical construction loan. The lender needs detailed plans, cost breakdowns, builder credentials (or owner-builder application), an appraisal of the projected completed value, and full financial documentation from you. Owner-builder loans take longer because of the additional documentation. Start the loan application as soon as you have plans and a written kit quote — don't wait for final permits.