How Financing Works at Primera Casa
A Streamlined Process Through One Trusted Lender Partner
If you've only ever taken out a regular mortgage, financing a new construction home can feel unfamiliar. We've simplified the process by partnering exclusively with Lake Michigan Credit Union (LMCU), one of the most experienced construction lenders working in Southwest Florida. One lender. One application. One process. We'll walk you through every step.
Your new build starts here
How a Construction Loan Works
A regular mortgage covers a home that already exists. The bank looks at the property, appraises it, and lends against its market value.
A construction loan is different. The lender funds your home as it's being built, releasing money in stages tied to construction milestones. When your home is complete, the construction loan converts to a permanent 30-year mortgage. You only close once. One application, one set of closing costs, and a locked-in rate from the start.
This is the type of loan our buyers use, and it's what LMCU specializes in.
Why We Partner with LMCU Exclusively
We've worked with construction lenders across Southwest Florida for years. We chose Lake Michigan Credit Union as our exclusive lender partner for one reason: they understand build-on-your-lot construction better than anyone we've worked with.
That means:
- Faster approval timelines than typical construction lenders
- A team that understands our build process, our pricing, and our standards
- Predictable draw schedules that keep our project moving
- A single point of contact who knows you, your build, and your timeline
By keeping our lending relationship focused on one partner, we eliminate the friction that comes with coordinating across multiple lenders. Your build moves faster, your financing is more predictable, and you don't have to become a construction loan expert just to buy a home.
Start the Financing ConversationWhat You'll Pay at Each Stage
Most buyers want to know one thing first: how much do I need to put down, and when?
Here's the actual structure for a Primera Casa build:
This is collected by Primera Casa Homes at the time you sign your build contract. It locks in your pricing, your plan, and your spot in our build schedule.
The balance of your down payment is paid at closing, which happens at the start of your construction loan. If you already own your land outright (and most of our build-on-your-lot buyers do), you may be able to close with nothing additional beyond the $15,000 deposit. Your land equity functions as part of your down payment.
Accepted payment methods:
- Wire transfer
- Personal check
- Bank check
- Cash
How LMCU Releases Funds (The Draw Schedule)
Once your construction loan closes, LMCU disburses funds in stages tied to construction milestones. A typical draw schedule looks like:
- 1Initial site work and lot prep
- 2Foundation complete (monolithic slab poured)
- 3Block walls and framing complete
- 4Dried-in (roof, windows, exterior doors installed)
- 5Rough mechanicals complete (electrical, plumbing, HVAC)
- 6Drywall and interior finishes
- 7Final completion and certificate of occupancy
Before each draw, an inspector verifies the work is done. During construction, you pay interest only on the money that's been disbursed, not the full loan amount. Once your home is complete, the loan converts to your permanent 30-year mortgage and you start standard principal-and-interest payments.
VA Construction Loans for Veterans
If you're a veteran, you have a separate path. VA construction loans are available through our builder-approved VA lender, and they often allow qualified veterans to close with no money down beyond the $15,000 contract deposit.
VA buyers follow the same Primera Casa build process, work with our approved VA lender (not LMCU), and enjoy the same predictable construction timeline. If you're a veteran, tell us during your first call. There are specific advantages worth understanding before you make decisions.
VA Loan InquiryFlorida-Specific Things to Know
A few details that matter more in Florida than in other states.
- Insurance is the buyer's responsibility
- Both builder's risk insurance during construction and flood insurance (if your lot is in a FEMA Zone A or V) are purchased by you directly, not by Primera Casa. This is more affordable than rolling it into the builder's policy, which is why we've structured it this way. We'll point you toward insurance partners who specialize in Florida construction coverage if you need recommendations.
- Florida insurance has gotten expensive
- LMCU will likely require insurance quotes before final loan approval. Start this conversation early to avoid delays.
- Flood zone information
- Flood insurance requirements are determined by the lot survey. This information becomes available after a buyer selects a lot and enters the purchase process, but before loan closing. Once the survey is completed, we'll confirm whether flood insurance is required for the property.
- Hurricane impact construction qualifies you for better insurance rates
- Every Primera Casa home is built with impact glass windows, steel-reinforced concrete block, and current Florida Building Code, which most insurance carriers reward with lower premiums than older homes receive.
- Property taxes apply
- Florida has no state income tax, but property taxes do apply. After closing, file for the Florida homestead exemption to reduce your annual tax bill.
Financing FAQs
View all FAQs-
Can I use cash instead of financing through LMCU?
Yes. Some buyers prefer to pay cash, especially if they're using proceeds from selling a previous home. The payment schedule is tied to the same milestones as the LMCU draw schedule. There's no lender involved, but the build process is otherwise the same. -
Do I need to own the lot before applying for a construction loan?
Not necessarily. If you already own your lot, the equity in your land functions as part of your down payment, which is why many of our buyers close with nothing more than the $15,000 contract deposit. If you don't yet own a lot, talk to us first. We'll walk you through what to look for and the options available through LMCU. -
Why don't you work with other construction lenders?
We tried that approach for years. The result was inconsistent draw schedules, slower approvals, lender confusion about our build process, and more friction for our buyers. By working exclusively with LMCU, every Primera Casa buyer gets the same predictable experience, and we can move faster on every build. The only exception is veterans, who can use our builder-approved VA lender. -
How much do I need for a down payment?
At minimum, $15,000 at contract signing. The total down payment depends on your specific situation, lot status, and loan program. Buyers who already own their lot outright often close with nothing additional beyond the $15,000 deposit. LMCU will walk you through your specific numbers once we're connected. -
Are there VA construction loans for veterans?
Yes. VA construction loans go through our builder-approved VA lender (not LMCU), and qualified veterans often pay nothing beyond the $15,000 contract deposit. We work with VA-approved lenders who understand the build-on-your-lot model. -
Will my construction loan rate be different from a regular mortgage rate?
Generally, construction loan rates are slightly higher than equivalent permanent mortgage rates due to the additional risk during construction. With LMCU's one-time close loans, the rate locks at the start and continues into the permanent mortgage phase. No surprises at conversion. -
What happens if construction costs go over budget?
This is rare with Primera Casa because we lock pricing at contract. LMCU typically builds a small contingency reserve into the loan to handle unexpected items. If costs come in under budget, the unused contingency is returned to you. -
When do my mortgage payments start?
During construction, you pay interest-only on the disbursed loan amount. Once your home is complete and the LMCU loan converts to your permanent mortgage, you start standard principal-and-interest payments. -
What payment methods do you accept for the $15,000 deposit?
Wire transfer, personal check, bank check, or cash. Cash will only be accepted if you intend to pay cash for the build, financing the build will require wire or check.
Ready to Talk Numbers?
Whether you've already started the conversation with LMCU or you're just beginning to research how a construction loan works, our team can walk you through what to expect. The conversation is free and there's no pressure to sign anything.