How Much Construction Loan Can I Get? Calculator
How much you can borrow for a construction loan comes down to two limits: how much the finished home is worth, and what your income and debts can support. This calculator handles the value side. Enter your land, build cost, the as-completed value, and your lender's loan-to-value limit to estimate your loan amount and the cash you'd bring to closing.
Your estimate
Enter your numbers
This calculator needs JavaScript. Results are estimates, not an offer of credit.
How lenders size a construction loan
Lenders cap the loan at a share of the property's value, called the loan-to-value limit. For a construction loan, the value is the home's as-completed value: what the appraiser expects the land and finished house to be worth, based on your plans and specs.
Fannie Mae's single-closing construction-to-permanent guidelines spell out two methods:
- Buying the lot as part of the deal: the loan is measured against the lower of the purchase price (the lot price plus the cost of construction) or the as-completed appraised value.
- You already own the lot: the loan is measured against the as-completed appraised value of the lot and improvements.
The calculator takes the lower of two numbers: the most your lender's limit allows, and what the project actually needs to borrow. Whatever's left over is your estimated cash to close, before closing costs and reserves.
Worked example
Using averages from the NAHB 2024 construction cost survey, a finished lot costs $91,057 and construction costs $428,215, for a total of $519,272.
- If you're buying the lot and the appraiser puts the as-completed value at $540,000, your lender measures against $519,272, the lower number.
- If you already own the lot, your lender measures against the as-completed value of $540,000.
Multiply that number by the loan-to-value limit your lender gives you to get the most it will lend. Then enter your numbers above to see your estimate. Your income and debts can also cap the loan. Check that side with the debt-ratio calculator.
Frequently asked questions
How much construction loan can I get?
It depends on the as-completed value of the home, your total project cost, your lender's loan-to-value limit, and your income and debts. The smallest of those limits sets the loan amount.
What is the as-completed value?
It's the appraiser's estimate of what the land and finished home will be worth once construction is done, based on your plans, specs, and comparable sales.
Does owning my land help me borrow more?
It usually means you need less cash. If you own the lot, the equity in it can count toward what you put into the project, so you may not have to bring as much cash to closing.
Why is my estimated loan lower than my build cost?
The loan is capped at a share of the property's value. If your costs are higher than that limit allows, the difference becomes cash you bring to closing.
Does this calculator check my income?
No. It looks at value only. Your lender will also check that your income can support the loan. Use the debt-ratio calculator on our calculators page for that side.
More construction loan calculators
Related guides
- How much can you borrow for a construction loan?
- How a construction loan appraisal works
- Using land you own toward a construction loan
Sources
This calculator is for general education. Results are estimates based on the numbers you enter, not an offer of credit, a rate quote, or a commitment to lend. Requirements vary by lender, loan program, and location.