Construction Loan Calculator Arizona | New Build Cost Estimator | Todd Uzzell Mortgage
Arizona Construction Financing Calculator

Construction Loan Estimator

Estimate your interest-only payments during the build phase and your permanent mortgage payment after completion — for custom builds, semi-custom, and new construction in Arizona.

Loan Type
Project & Loan Details
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$
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Estimated Draw Schedule (5-Phase)
Interest-only payments increase as each draw is funded. Average draw balance used for total interest calculation.
Payment Timeline
During Construction
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Interest only on avg drawn balance
Increases with each draw
At Completion (Final Draw)
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Interest only on full loan amount
Before conversion to permanent
Permanent Mortgage
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Principal & interest — fixed
Starts after build completion
Total Project Cost
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land + build
Your Down Payment
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at closing
Construction Interest
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est. over build period
Permanent Payment
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monthly P&I at completion
Enter your project details above to estimate your construction loan costs.
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How Construction Loans Work in Arizona

A construction loan is a short-term financing tool that funds the building of your home in phases — called draws — as each stage of construction is completed and inspected. Unlike a traditional mortgage where you receive the full loan at closing, construction loans release money progressively: foundation first, then framing, rough-in work, drywall, and final completion.

During the build, you pay interest only on the amount that has been drawn — not the full loan amount. This keeps your payment lower during construction. Once your home is complete and receives a certificate of occupancy, the loan either converts to a permanent mortgage (one-time close) or is paid off with a new permanent loan (two-time close).

Arizona construction note: Build timelines in the Phoenix metro vary widely. Custom homes on acreage in Scottsdale, Cave Creek, or Queen Creek may take 12–18 months. Production new builds in master-planned communities in Buckeye, Maricopa, or Surprise often complete in 6–9 months. Your loan term should be set conservatively — most lenders allow extensions if needed.

One-Time Close vs. Two-Time Close Construction Loans

✓ One-Time Close (OTC)

  • Single closing — one set of closing costs
  • Lock rate at the start — no rate risk at conversion
  • No re-qualification at completion
  • Available as Conventional, FHA (3.5% down), or VA (0% down)
  • Slightly higher rate during construction phase
  • Best for: most borrowers building their primary residence

Two-Time Close

  • Two separate closings — two sets of closing costs
  • Rate set at permanent closing — can be lower or higher
  • Requires re-qualification after construction
  • More lender options for construction phase
  • More flexibility if project scope changes significantly
  • Best for: investors, complex projects, or when permanent market rates are expected to improve

Down Payment Requirements for Arizona Construction Loans

  • Conventional OTC: Typically 10–20% of total project cost (land + build)
  • FHA OTC: 3.5% down — strong option for first-time builder-buyers
  • VA OTC: Zero down for eligible veterans — the most powerful construction financing available
  • Two-Time Close: Construction phase typically 10–20%; permanent phase follows standard loan requirements

What the Draw Schedule Looks Like

Most construction lenders use a 5-draw schedule, releasing funds as each phase passes inspection. A typical breakdown for an Arizona single-family home:

  • Draw 1 — Foundation (15%): Slab or stem wall complete, framing materials delivered
  • Draw 2 — Framing (25%): Frame, roof sheathing, exterior sheathing complete
  • Draw 3 — Rough-In (20%): Plumbing, electrical, HVAC rough-in complete
  • Draw 4 — Drywall (20%): Insulation, drywall hung and finished
  • Draw 5 — Completion (20%): Cabinets, flooring, fixtures, certificate of occupancy issued
What is a one-time close construction loan?
A one-time close (OTC) construction loan combines construction financing and the permanent mortgage into a single loan with one closing, one set of closing costs, and one approval. You lock your permanent rate at the start and automatically convert to the permanent mortgage when construction is complete — no second qualification required. Learn about Todd's construction loan programs →
How does the draw schedule work on a construction loan?
During construction, funds are released in draws as each phase is completed and inspected. You pay interest only on the amount drawn, not the full loan amount. As more draws are taken, your interest-only payment increases. Once all draws are funded and construction is complete, the loan converts to your permanent mortgage.
How much down payment do I need for a construction loan in Arizona?
Most conventional construction loans require 10–20% down. FHA one-time close construction loans allow 3.5% down. VA one-time close requires zero down for eligible veterans. The down payment is based on the total project cost — land plus build — not just the structure.
How long does construction take for a new home in Arizona?
Most single-family custom builds in Arizona take 9–12 months from groundbreaking to certificate of occupancy. Production builder homes in master-planned communities can sometimes complete in 5–7 months. Build your loan term conservatively — most lenders offer extensions if construction runs long due to weather, supply chain, or permitting delays.

Ready to Build in Arizona?

Construction financing is more complex than a standard purchase loan — and getting it right from the start saves significant time and money. Todd works with custom builders, owner-builders, and new construction buyers across the Phoenix metro and greater Arizona.

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