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According to the 2020 Census, the population of Florida grew by 14.6% from 2010-2020. Every year, more and more prospective homeowners might seek out construction loans in Florida, due to the many beautiful locales the great state has to offer. Whether you’re looking to build your new home in Boca Raton or the Keys, a Florida construction loan can be your family’s path to a brand-new home that perfectly suits their needs.

 Understanding Construction Loans in Florida for Residents

 So how do construction loans work in Florida? As in the other 49 states, you must first meet the lender’s qualifications for a construction loan in order to get approved for a construction loan in Florida. This means you need to demonstrate sufficient income, assets, and credit history to repay the loan.

Keep in mind that construction loans typically require higher FICO scores and income requirements compared to a regular purchase mortgage. This is due to the increased risk that construction loans pose to the lender.

If you are approved and close on one of The Federal Savings Bank’s new construction loans in Florida, we will disburse your funds directly to the builder as work is completed on your new property.

 Know Your Options: Escrowing for Taxes and Insurance

 Many Florida homeowners choose to pay their new home’s taxes and insurance as part of their monthly payment to the lender, who holds the funds in escrow until payment is due. But some borrowers prefer to pay their insurance premiums and property taxes directly. If you choose not to escrow taxes or insurance on your Florida construction loan, inform your loan officer early in the process so you can receive an updated loan estimate.

At The Federal Savings Bank, our Florida construction loan experts are ready to help you when you reach them at 1-877-788-3520. They will guide you through the process of financing the home you want to build.  No matter where you are in your journey– if you’re just gathering information, or you’re looking for a new lender ASAP – we can help you get settled into your new family home. Don’t hesitate to give us a call today.


This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.