Build Your Dream Home

Whether building or renovating, learn how PNC's construction loan options could work for you

Construction & Renovation to Permanent Financing & Lot Loans

Building or renovating a home is an exciting time for homeowners. Whether you’re a first-time builder or a seasoned professional, everyone needs a little guidance along the way.

PNC’s primary responsibility is to furnish financing, while adhering to all applicable regulatory guidelines. We do this by providing outstanding service, being a resource of information, monitoring the project’s progress and disbursing funds in a timely manner.

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Important: These products are only available to customers with collateral in Alabama, Arizona, California, Colorado, Florida, New Mexico, Texas and Washington. This product is not yet available to customers outside of these states.

How Do I Get Started?

If you're ready to start building, renovating, or purchasing a lot to build, fill out the form below to be contacted by a certified Mortgage Loan Officer (MLO).


What If I Need More Information?

Download our PNC Construction Loan guide for more information.

Click Here to View and Download Guide

Required Documentation During Each Draw Phase

  • Builder's Risk Insurance
  • General Liability Insurance
  • Foundation Survey, Foundation Title Endorsement or other foundation documentation accepted by PNC based on state-specific requirements

Final Inspection
Once the project is 100% complete, contact your Draw Coordinator to schedule the final inspection by the appraiser. Some loan types require a new appraisal in lieu of a final inspection; the homeowner is responsible for the cost.

Final Survey
Based on state-specific requirements

Flood Insurance
If applicable

Homeowner’s Insurance
Provide policy and proof of payment showing payment paid for one year.

Final Affidavit
Provided by PNC

Soil Treatment Letter or Termite Bond
If typical for the area

Paid Real Estate Tax Receipt
For most recent tax period

Certificate of Occupancy
If required/provided by local authority

Well Approval
If applicable and provided by local authority

Septic Approval
If applicable and provided by local authority

Notice of Completion

Final Lien Waiver

Other State-Specific Requirements as Applicable

** Your Draw Coordinator will provide required documents near completion of construction

  • Homeowner's and builder's approval
  • Builder's Risk and General Liability Insurance
  • Invoices, if applicable

Disbursement of Funds for Completed Work

Requesting a disbursement of funds from PNC is easy and convenient. The typical disbursement process is as follows:


PNC will inspect the project to determine the progress. If inspections exceed the number of prepaid inspections (typically three for renovation and six for construction), additional inspection fees may be charged and are the homeowner’s responsibility.


The inspection schedule will determine completion based on a percentage complete basis. The actual building cost may differ at any stage of completion.


Inspections are usually obtained within 48 hours of notice and corresponding draw made within 24 hours of the receipt of the inspection report and required documentation. If the homeowner and/or builder fail to complete a required document correctly, funds will not be released until the error is corrected.


Funds are disbursed to the homeowner, to the builder or jointly as agreed to by the parties after an inspection of the property. Only items completed at the time of the inspection will be given credit.


Once the method of disbursement is established, any change in the disbursement method, regardless of who is requesting the change, is required to be submitted in writing by the homeowner.


If applicable, Earnest Money and the Startup Draw are calculated and factored into the first draw, which may be at closing. The homeowner and/or builder will provide a breakdown that details how funds were used.

Important Dates to Remember

Closing Date Your loan is closed; you’ve drawn the funds you need and you’ll begin construction. You’ll receive a Welcome Email shortly after.
1st of each month after closing Your interest-only payment will be due.
17th of each month after closing We prepare your interest bill and send it to you.
30 days before you complete construction Contact your Draw Coordinator to talk about final requirements and your final draw (the final amounts you need to complete construction.)
Conversion Date This is typically the date you complete construction. Your loan will change from the construction phase to the permanent phase and your payments will go from interest-only to mortgage payments of both interest and principal.

Frequently Asked Questions

These products are only available to customers with collateral in:

  • Alabama
  • Arizona
  • California
  • Colorado
  • Florida
  • New Mexico
  • Texas
  • Washington

This product is not yet available to customers outside of these states.

Monthly interest-only payments, which are calculated on the loan funds disbursed.

If you are in a flood zone, flood insurance will be collected during the construction phase.

Some of the most common expenses you should expect to pay are:

  • Final construction phase interest
  • Escrows for tax and insurance(s)
  • Prepaid interest on the permanent phase
  • Additional inspection fees — if applicable

For more information, review the Post-Closing Fees and Other Loan Expenses in the PNC Construction Loan Fact Sheet.

No. Both the homeowner(s) and builder must approve each draw request.

Escrows for taxes and insurance are collected on your conversion date.

Borrowers are responsible for making all escrow payments that come due during the construction phase.

Subject to lender approval

In the event the improvements are not complete and/or you are unable to meet the requirements prior to maturity, additional fees and/or interest rate increases may apply.

The lender will determine if an extension is appropriate. This is subject to qualification and applicable fees. Some restrictions apply.

  • Meet PNC requirements, follow established procedures and adhere to the terms of the loan.
  • It’s both the homeowner and the contractor’s/builder's responsibility to complete the project within the building contract terms.
  • Meet frequently to discuss the project, issues, changes, etc.
  • Make frequent jobsite visits together.
  • Resolve disputes quickly and fairly.
  • Have timely and effective communication.
  • Inform PNC of any changes or issues as they arise.

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