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With Millennial Home Loans quick online loan application, determining if you qualify for an Conforming and Jumbo Construction Loan Loan and for how much, has never been easier.

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Conforming and Jumbo Construction Loans.

10% Down, 6% Seller Closing Credit Allowed

Yes you can build your own home as little as 10% down!

Conforming Construction Loans Program Guidelines

Loan Purpose

  • Finance Construction Costs
  • Purchase a lot
  • Land can be currently owned, including:
    • Recently purchased
    • Owned Free and Clear
    • With a current mortgage

Credit Score and Maximum Loan Limit

Primary Residence – Construction/Construction-To-Perm
Loan LimitsMaximum LTVMinimum Credit ScoreMaximum Loan Amount
Conforming Loan Limits≤ 90.00%720 $453,100
≤ 70.00%700
High Balance Loan Limits≤ 90.00%720County Specific. Click Here to Search
Jumbo Loan Limits≤ 85.00%760$1,000,000
≤ 80.00%720$1,500,000
≤ 70.00%720$2,500,000
Second Home - Construction/Construction-To-Perm
Jumbo Loan Limits≤ 75.00%720$1,000,000
≤ 70.00%720$1,500,000
≤ 65.00%720$2,000,000
≤ 50.00%720 $2,500,000

Credit Profile

  • Credit score as determined by above matrix (no exceptions)
  • Desktop Underwriting findings must be “Approve/Eligible” for Conforming and High Balance Loan limits and “Approve/Ineligible” for Jumbo Loan limits
  • Waiting period after a major negative credit event:
Conventional Loan TypeBK – Chapter 7BK – Chapter 13 DischargedBK – Chapter 13 DismissalForeclosure*Short Sale, Deed-In-Lieu, Pre-Foreclosure*Modified Mortgage*
Standard4 years2 years4 years 7 years4 years2 years
With Extenuating Circumstance2 years2 years5 years3 years (requires 10% down)2 yearsNo waiting period

* If a property was included AND surrendered (i.e. property wasn’t retained and the debt wasn’t reaffirmed) in a Chapter 7 Bankruptcy, the borrower may potentially be able to defer to the Chapter 7 waiting period Vs. the Foreclosure waiting period.


  • For Conforming and High Balances Loan limits the reserve requirements are based on Desktop underwriting findings
  • Jumbo Loan reserve requirements are as follows
OccupancyLoan AmountRequired Reserves
Primary ResidenceUp to $1,000,0009 months
$1,000,000 to $1,500,00021 months
$1,500,000 to $2,000,00027 months
$2,000,000 to $2,500,00030 months
Second HomeUp to $1,000,00015 months
$1,000,000 to $1,500,00021 months
$1,500,000 to $2,000,00027 months
$2,000,000 to $2,500,00039 months

Construction Timeframe

  • Construction timeframe will be assessed on a case-by-case basis based on a typical construction time for the scope of the project, construction type, time of the year, and location of the property
  • Maximum construction time-frame is as follows:
    • Conforming loan limit: 12 months
    • High Balance loan limit: 12 months
    • Jumbo loan limit: 24 months
  • Construction can start immediately after closing
  • During the construction period borrower only makes interest only payments


  • The initial draw at closing will cover upfront costs; including payoff the lot, building permit, architectural fee
  • Draw amount will be based on inspections and percentage of completion
  • The quantity of allowable draws are based on the loan amount (see below)
  • Final draw is paid after the Certificate of Completion or Occupancy is issued

OTC Administrative Fees, Draws, and Construction Interest

  • The lender will use a third-party Draw Administrator to perform a builder review, project review, and act as a draw administrator. The number of draws and fees charged by the Draw Administrator will vary as follows:
≤ $200,000$200,000 - $453,100$453,101 – $650,000$650,001 – $1,000,000$1,000,001 – $2,500,000
Construction Draw Fee$1,400$1,750$2,650 $3,65055 bps
Incl. Number of Draws3 Draws5 Draws7 Draws10 Draws 12 Draws
Additional Draws$265$265$275$295$350
Final Inspection$175$175$175$175$175
Final Title$175$175$175$175$175
Title Updates/EndorsementsBased on title quote from Settlement Agent
  • Interim Construction Interest Rate*
    • To determine the Construction Interest Rate, use the locked interest rate and add the following
Construction TermRate Adjustment
6 Months.50%
9 Months.625%
12 Months.75%
18 Months1.00%
24 Months1.25%

* This is not the permanent interest rate of the borrower’s loan. It is the interim interest rate accruing during the construction period. The borrower is responsible for making the interest only payments, only on the amount drawn, during the construction period

Builder/Retailer Responsibility

  • The builder/Retailer must act as the only General Contractor (“GC”) on the project
  • GC can’t be related to the borrower(s) or an employee/employer of the borrower
  • GC must be insured, licensed, and bonded

Loan Amount

  • See above chart under “Credit Score and Maximum Loan Limit”

Mortgage Insurance Premiums

  • All loans above 80% Loan-To-Value (LTV) require mortgage insurance coverage according to the following guidelines:
Mortgage Insurance Premiums
85.01 – 90%25%12%
80.01 – 85%12%6%


  • As determined by Automated Underwriting System or AUS. Requires a Desktop Underwriter “Approve/Eligible” or “Approve/Ineligible” findings
  • Manual underwrite not accepted on the Conforming OTC program

Property Type

  • Eligible:
    • One-unit properties only
    • Stick Built Housing
    • Modular Homes
    • Detached site condominiums
    • Rural Properties
    • Tear-downs & major renovations (eligible with 12-month construction period only)
  • Ineligible:
    • Manufactured Housing
    • 2-4 unit properties
    • Properties where construction has already begun
    • Lots in excess of 10 acres
    • Log homes


  • Owner occupied
  • Second homes
  • Ineligible – non-occupant co-borrowers/co-signers


  • All loans must be fully documented per Agency Guidelines
  • For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)

Down Payment/Closing Costs

  • For Down Payment amount, see above chart under “Credit Score and Maximum Loan Limit”, based on the combined purchase price of the land and construction costs
  • If already own land, the down payment can come from equity in the land
  • Seller and Builder contribution toward buyers closing costs and escrows up to 6%
  • For Conforming and High Balance Loans, down payment and closing cost help may be gifted
  • For Jumbo Loans minimum 10% down required from borrower’s own source of funds


  • Amortization period: 15 and 30-year fixed rate
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