Using one of Keel Custom Home’s preferred lenders minimizes delays and ensures a smooth lending experience.
Receive a $10,000 credit when using one of our preferred, top rated lenders!
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Clay Carroll with Cross Country Mortgage
I’ll be with you every step of the way
Hi, I’m Clay Carroll, originating branch manager with CrossCountry Mortgage at our Midlothian, VA location. I pride myself on being a dedicated professional with more than 22 years of mortgage experience. My #1 focus is helping clients create wealth through real estate, emphasizing structure and strategy to maximize their return on investment.
As part of America’s #1 Retail Mortgage Lender, I’m very knowledgeable about a wide range of home loan products, including those for first-time homebuyers, FHA, VA, jumbo, renovation, construction, and refinance loans. Whether you’re looking to finance your first home, next home, or current home, we’ll discuss your goals and priorities to develop a personalized mortgage plan.
Over the years, I’ve served on the Board for the Richmond Mortgage Bankers Association and various committees for the Home Building Association of Richmond. Referrals are the heart of my business—I appreciate your help in spreading the word about my services.
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Joe Dunn with First Heritage Mortgage
About Joe
Joe Dunn brings a wealth of experience and dedication to his role as EVP, Southern Virginia Regional Sales Manager based in Richmond, Virginia. With a wealth of experience in the banking and financial services industry, Joe has established himself as a leading figure in providing comprehensive loan solutions to clients. His expertise encompasses a broad range of loan products, including residential mortgages, commercial lending, and specialized financing options.
Joe’s career is marked by a commitment to personalized service and a deep understanding of the local market. He has a proven track record of supporting clients through every step of the loan process, from initial consultation to closing, ensuring a seamless and positive experience. His approach is characterized by a blend of technical knowledge, strategic insight, and a genuine desire to help clients achieve their financial goals.
“It’s a Dunn deal!”
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Sanj Banga with TowneBank Mortgage
Sanj Banga is a seasoned mortgage loan officer with over 25 years of industry experience. Based in Richmond, Virginia, he specializes in Conventional, VA, FHA, and USDA loans, with a particular focus on New Construction and Construction to Permanent financing. Sanj's extensive background includes both loan origination and leadership roles, providing him with a deep understanding of the mortgage process from every angle.
Known for his strong analytical and problem-solving skills, Sanj excels at tailoring loan products to meet the unique needs of each client. His dedication to providing exceptional service is evident in his clients' feedback, with many praising his professionalism, responsiveness, and ability to navigate complex situations. Sanj is passionate about helping clients achieve their homeownership dreams and is committed to building lasting relationships based on trust, accountability, and reliability.
Beyond his professional life, Sanj enjoys the excitement of sports, the artistry of music, and the culinary creativity of cooking.
Lean More About Loans
What are Construction Loans?
A construction loan is a short-term loan used to finance the building or renovation of a home, with funds disbursed in stages as work progresses. It typically has higher interest rates, interest-only payments during construction, and requires detailed plans and builder approval. Once the home is complete, it’s often converted into a permanent mortgage. In contrast, a traditional mortgage is a long-term loan with lower, fixed or adjustable interest rates, used to purchase or refinance an existing home. The loan amount is given in full at closing, and payments go toward both principal and interest from the start.
Common types are a “standalone” or construction-only loan which is a short-term loan (generally with a year-long term) — which only finances the building phase. The other is a “construction-to-permanent” loan, that converts into a mortgage once construction of the home is completed. Borrowers who take out a standalone construction loan often get a separate mortgage to pay it off when the principal falls due.
Construction Loan Rates
Construction loan rates typically range from 1% to 2% higher than traditional mortgage rates. For example, if a conventional mortgage rate is around 6%, a construction loan might range between 7% and 8%.
Why are construction loan rates higher?
Higher Risk for Lenders — The home doesn’t exist yet, so the lender is taking on more risk in case construction doesn’t finish as planned.
Short-Term Nature — Since these are short-term loans (usually 6–18 months), lenders charge more for the quick turnaround.
Variable Rates — Many construction loans have variable rates that adjust during the loan term, reflecting market fluctuations.
More Oversight — Lenders put extra effort into inspections, draw schedules, and monitoring the project, and the higher rate offsets that cost.
Qualifying for a Construction Loan
Good Credit Score
Most lenders require a minimum credit score of 680–720.
Solid Down Payment
Usually 20% to 25% of the total project cost (land + construction).
Low Debt-to-Income (DTI) Ratio
Lenders typically want to see a DTI ratio of 45% or less.
Detailed Construction Plan
Must submit blueprints, specifications, project budget, and timeline.
A signed contract with a licensed builder is often required.
Appraisal on Future Home Value
The lender will appraise the property based on the plans and specs to ensure the completed home will support the loan amount.
Proof of Income & Assets
Just like a mortgage, you’ll need W-2s, tax returns, bank statements, and sometimes proof of additional reserves.
Builder Approval
The lender will vet and approve your builder to ensure they’re qualified and experienced.
