After years of higher borrowing costs, construction loan rates below 6% are creating real opportunities for new home builds. We’re seeing examples like 5.875% with zero points or 5.625% with 1 point. These rates can save thousands of dollars over the life of a loan.

Rates, of course, are not guaranteed. They shift daily and depend on factors like credit score, loan size, and down payment. But knowing these opportunities exist makes this a smart time to explore financing.

What Is a Construction-to-Permanent Loan?

A construction-to-permanent loan rolls your construction financing and your existing mortgage into a single new mortgage. That means:

Modern Custom Home in Arlington Virginia

  • One approval and one closing (saving time and fees)
  • Interest-only payments during construction
  • Seamless conversion to a standard mortgage at move-in

Realtor.com calls this loan structure one of the most efficient ways to finance a new build. It simplifies the process and protects you from having to re-qualify later once the build is completed.

Why It’s a Smart Move Now

For homeowners planning a new build, the benefits are clear:

  • Predictability: Lock in today’s sub-6% rate before markets shift.
  • Cash flow relief: Interest-only during construction eases payments.
  • Flexibility: Options like a 7/1 ARM from our dedicated Lender Partner delivers even lower starting rates, with the ability to refinance later.

As Architectural Digest notes, upfront planning saves both time and money. Aligning financing early is one of the smartest moves you can make. Just remember to align your loan closing with your builder’s “ready to start construction” timeline.

How Paradigm Homes Helps

At Paradigm, we do more than design and build—we help clients navigate Custom Home financing with trusted lending partners as well. Our Services streamline the design-build process, while our lender relationships ensure your financing stays aligned with your goals.This is one of the many ways we make good on our commitment to being a single-source builder partner for our clients. 

Browse our Portfolio for inspiration, then Contact us to start planning with confidence.

Construction loan rates under 6% won’t last forever. If building a new home is on your horizon, now is the time to explore your options. With the right financing in place, you can break ground knowing your dream home is backed by a smart financial plan.

Quick Tip: We onboard clients in the order that they reach out to us so don’t delay, secure your spot with our Sr. Staff Architect TODAY!