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Best Construction-to-Permanent Lender in FL: How to Choose
Last updated: October 29, 2026. Checked against the primary sources listed at the end of this guide.
There is no single "best" construction-to-permanent lender in Florida for everyone. The best lender for you is the one that offers the loan program you need, lends where you are building, approves your builder, and runs a draw and inspection process you can live with. Compare at least a few lenders on the same checklist before you apply.
In Florida, also ask how each lender handles the Notice of Commencement, Notices to Owner, and coastal construction rules.
Key takeaways
- Compare several lenders on the same checklist, and ask each one for a Loan Estimate for your project.
- Florida contractors are licensed by the Construction Industry Licensing Board, so check the license before you sign.
- A Notice of Commencement must be recorded before the first inspection, and lenders track it closely.
- Documentary stamp and intangible taxes apply when your mortgage is recorded.
- Check every lender and loan officer on NMLS Consumer Access before you apply.
What is a construction-to-permanent loan?
A construction-to-permanent loan pays for building a home and then becomes your regular mortgage once the home is finished. With a one-time close, you close once, before construction starts. Fannie Mae describes single-closing loans as closing "on both the construction loan and the permanent financing at the same time" (Fannie Mae Selling Guide B5-3.1-02).
FHA uses the same idea. HUD defines its Construction to Permanent program as combining a construction loan with a permanent mortgage "using a single mortgage closing prior to the start of construction" (HUD Mortgagee Letter 2019-08).
During the build, you usually pay interest on the money drawn so far. When the home is done, the loan converts to the permanent mortgage. See one-time close vs. two-time close for how the two structures differ.
What types of lenders offer construction-to-permanent loans in Florida?
| Lender type | What to know |
|---|---|
| Banks | Many offer construction loans, often through a dedicated construction team. Program choices vary by bank. |
| Credit unions | Often lend in a set area and may keep construction loans in house. You usually need to join. |
| Mortgage companies | May offer FHA, VA, USDA, or conventional one-time close programs. Builder rules can be strict. |
| Mortgage brokers | Do not lend their own money. They shop your loan with lenders. See the CFPB's explanation of what a mortgage broker is. |
No lender type is always better. A local lender may know your town's septic and permit steps well. A national lender may offer more government-backed programs. What matters is how each lender handles your specific build.
What should I compare between construction lenders?
| What to compare | Why it matters | What to ask |
|---|---|---|
| Programs offered | Not every lender offers FHA, VA, USDA, or conventional one-time close. | Which construction programs do you offer in Florida? |
| One-time or two-time close | Changes how many closings and how much paperwork you face. | Do you close once, or will I need a second loan when the home is done? |
| Builder approval | Most lenders must approve your builder before closing. | What do you need from my builder, and how long does approval take? |
| Draws and inspections | Draws release money as work is finished. Slow draws can stall a build. | How many draws are there, who inspects, and how fast are funds released? |
| Lien waivers | Unpaid contractors and suppliers may be able to file liens. | How do you collect lien waivers with each draw? |
| Land | Some lenders count land you already own toward the equity they require. | How do you value land I own or am buying? |
| Build timeline | Delays can cost money and create problems at conversion. | What happens if the build runs late? |
| Total closing costs | Fees and state or local transfer and recording charges vary. | Can I see a Loan Estimate for my project? |
| Local experience | Septic, wells, flood zones, and local permits differ across Florida. | Have you financed builds where I am building? |
The CFPB explains that you get a Loan Estimate after you apply. It is the easiest way to compare lenders on the same project.
What questions should I ask every lender?
- Do you offer a one-time close construction-to-permanent loan for my type of home (site-built, modular, or manufactured)?
- Do you lend where I am building, and have you closed construction loans there recently?
- What do you require from my builder, and do you allow owner-builders?
- How does the draw schedule work, and who orders the inspections?
- Do you require a contingency reserve for overruns?
- How do you treat land I already own?
- What happens if construction takes longer than planned?
- Who handles the closing in Florida, and what title steps will you need?
- What documents will you ask me to update before the loan converts?
- Can you give me a Loan Estimate based on my plans and budget?
What Florida rules affect your lender choice?
| Topic | Florida rule | Where to check |
|---|---|---|
| Contractor license | Construction Industry Licensing Board | Florida DBPR |
| Owner-builder | Disclosure statement; one-year sale presumption | Local building department |
| Building code | Florida Building Code, 8th Edition (2023) | County or city building department |
| Notice of Commencement | Recorded before the first inspection | Clerk of court |
| Septic | DEP onsite sewage program | Florida DEP |
| Coastal lots | CCCL permit seaward of the control line | Florida DEP |
| Construction liens | Claim within ninety days; Notice to Owner | Clerk of court |
| Closing taxes | Documentary stamp and intangible taxes | Your title agent or attorney |
What is different about building in Florida?
Does my builder need a license in Florida?
Yes. Florida contractors are licensed by the Construction Industry Licensing Board (Florida DBPR, construction industry). Check the license type and status before you sign. See how builder approval works.
Florida lets owners act as their own contractor for a home they will live in, after signing a state disclosure statement. If the owner sells or leases the home within one year after completion, the law presumes it was built for sale or lease (Fla. Stat. § 489.103). Many lenders still won't finance an owner-builder. Read more about owner-builder construction loans.
How are construction loan closings handled in Florida?
Florida closings may be handled by title agents or attorneys. Documentary stamp tax applies to deeds and to notes and mortgages (Florida DOR, documentary stamp tax), and nonrecurring intangible tax applies to mortgages (Florida DOR, nonrecurring intangible tax). Both are paid when the documents are recorded.
Do I need a septic permit in Florida?
If there's no sewer, yes. Onsite sewage treatment and disposal systems are permitted under the Florida Department of Environmental Protection's onsite sewage program (Florida DEP, onsite sewage). Lenders usually want the permit before the first draw.
What about the coast and flood zones in Florida?
Check your lot on the FEMA Flood Map Service Center. If the home sits in a high-risk flood area, the lender will generally require flood insurance. Beachfront lots seaward of the Coastal Construction Control Line need a DEP permit in addition to local permits (Florida DEP, Coastal Construction Control Line).
How do construction liens work in Florida?
Florida's construction lien process starts with a Notice of Commencement, which must be recorded before the first inspection (Fla. Stat. § 713.13; permit warnings in § 713.135). Subcontractors and suppliers who don't contract with you serve a Notice to Owner (§ 713.06), and a claim of lien must be recorded within ninety days after the claimant's final work or materials (§ 713.08). A lien generally lasts one year unless a lawsuit is filed (§ 713.20). Lenders collect lien releases as each draw is paid.
For permits, codes, and the full step-by-step list, see construction loan requirements in Florida.
Are there state homebuyer programs for building in Florida?
Florida Housing Finance Corporation offers homebuyer programs through participating lenders (Florida Housing). Ask whether a program can be used with new construction before you plan around one.
How do I check that a lender or loan officer is licensed in Florida?
Look them up on NMLS Consumer Access, the national registry for mortgage companies and loan officers.
Florida's Office of Financial Regulation licenses mortgage lenders, brokers, and loan originators (Florida OFR).
What are red flags when choosing a construction lender?
- They can't explain how draws, inspections, and lien waivers work.
- They won't review your builder until after you commit.
- They push you to skip the Loan Estimate or to sign before you understand the costs.
- They have no experience with septic, wells, or rural lots and your lot needs them.
- They don't appear in NMLS Consumer Access.
What should I have ready before I talk to lenders?
- Recent pay stubs, W-2s or tax returns, and bank statements
- Your lot details: deed or purchase contract, survey, and any septic or soil reports
- Plans, specifications, and a line-item budget from your builder
- Your builder's license or registration, insurance, and references
- A rough timeline from permits to move-in
Where can I start?
Compare a few lenders side by side. Our list of Florida construction loan lenders is a starting point, and you can compare construction loan options by program. Building somewhere else? See our construction loan guides by state.
Frequently asked questions
Who is the best construction-to-permanent lender in Florida?
There is no single best lender for everyone. The right fit depends on the program you need, where you are building, your builder, and how the lender handles draws. Compare several lenders on the same checklist.
Who closes a construction loan in Florida?
Florida closings may be handled by title agents or attorneys. Your lender will tell you who it uses.
Does a Florida builder need a license?
Yes. Contractors are licensed by the Construction Industry Licensing Board. Check the license before you sign.
Can I use an FHA or VA construction-to-permanent loan in Florida?
Often, yes, but not every lender offers them. FHA's program requires a licensed builder, and VA construction loans require a lender that offers them. Ask each lender which programs it closes in Florida.
How do I check if a construction lender is licensed in Florida?
Search the lender and the loan officer on NMLS Consumer Access. In Florida, Florida's Office of Financial Regulation oversees mortgage lender licensing.
Sources
- Fannie Mae Selling Guide B5-3.1-02
- HUD Mortgagee Letter 2019-08
- what a mortgage broker is
- Loan Estimate
- Florida DBPR, construction industry
- Fla. Stat. § 489.103
- Florida DOR, documentary stamp tax
- Florida DOR, nonrecurring intangible tax
- Florida DEP, onsite sewage
- FEMA Flood Map Service Center
- Florida DEP, Coastal Construction Control Line
- Fla. Stat. § 713.13
- § 713.135
- § 713.06
- § 713.08
- § 713.20
- Florida Housing
- NMLS Consumer Access
- Florida OFR
Ready to compare Florida lenders?
Tell us about your lot, your builder, and the kind of home you want to build. Get connected at My Construction Path, and we'll connect you with lenders who offer construction-to-permanent financing in Florida.
My Construction Path is not a lender and does not make loans or credit decisions. Not all borrowers will qualify. Equal Housing Opportunity. Requirements vary by lender, loan program, and location. This article is for general education and is not a commitment to lend. It is not a quote of rates, payments, or loan terms.