Hiring a Builder Construction Loans in Michigan

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Hiring a Builder Loan in Michigan

Michigan’s residential lending environment has its own characteristics — Michigan Residential Code (MRC), based on the International Residential Code with Michigan-specific amendments, local permitting structures, and a construction market shaped by cold winters with frost-line foundation requirements. Normandy’s construction loan with builder program is available to borrowers across Michigan, including Detroit Metro, Grand Rapids, Lansing, Ann Arbor, Traverse City, and Kalamazoo.

LARA licensing requirements, frost-line foundation depths, and Michigan’s seasonal construction windows make a licensed residential builder an important partner for any custom home project in the state.

Program range: Loan amounts from $95,000 to $5,000,000. Conforming up to $832,750 at 90% LTC; jumbo to $5M at 80% LTC. 12-month construction term; extensions available. Interest-only on funds advanced. Foreign nationals are eligible. Full income documentation required for maximum LTV.

Pre-qualify or request a rate quote at https://normandy.com/hiring-a-builder-loan/. All Normandy loan programs: https://normandy.com/. Call 800-390-7536.

General Guidelines*

  • Loan amounts from $95,000 to $5,000,000
  • Conforming loan amounts up to $832,750. Maximum 90% loan to cost or loan to value, whichever is less
  • Jumbo loan amounts from $832,751 to $5,000,000. Up to 80% loan to cost or loan to value, whichever is less
  • Cross collateralization allowed on other properties for maximum or greater loan amounts, and loan to values
  • Owner occupied and non-owner occupied properties allowed
  • Full income documentation required to qualify for 90% on conforming loan amounts and 80% on jumbo loan amounts
  • Land purchase may be included in the construction loan
  • Foreign Nationals are eligible for this program
  • Deal directly with the Loan Officer/Underwriter
  • Pre-qualification typically within 3 to 5 business days, closing typically within 30 days (fast track closings in 14 +/- days available if certain criteria is met, please call for details)
  • Licensed General Contractor required
  • No minimum FICO required for consideration, however a minimum 750 mid FICO score is required to qualify for 90% conforming & 80% jumbo construction loans (subject to underwriting)
  • Flexible draw schedules aligned with builder’s schedule
  • Up to 80% allowed on 2 to 4 family owner-occupied homes
  • 5+ units, please refer to [Commercial Construction](https://normandy.com/construction-loans/)
  • 12 month construction term with term extensions available
  • Interest only payments based on funds advanced

*All rates and terms subject to change without notice
**Specific qualifications are required to qualify, please call for details

For a Rate and Fees quote call

800-390-7536

PRE QUALIFY NOW (Consumer Use Only)

Michigan Construction Market & Regulatory Overview

Michigan’s construction market covers a wide range — urban infill and suburban development in Greater Detroit and Grand Rapids, lakefront custom builds throughout both Peninsulas, and resort community construction in Northern Michigan.

Building Code: Michigan Residential Code (MRC), based on the International Residential Code with Michigan-specific amendments.

Permitting: Permits are issued at the local municipality level. All residential construction must comply with the MRC and applicable local amendments.

Key construction considerations in Michigan include cold winters with frost-line foundation requirements, freeze-thaw cycles, and lake-effect weather patterns along Great Lakes shorelines. Normandy’s underwriting team works directly with borrowers — you deal with the loan officer and underwriter, not a call center.

Contractor Licensing in Michigan

Michigan requires residential builders to hold a Residential Builder license through LARA (Department of Licensing and Regulatory Affairs). Maintenance and alteration contractors are separately licensed.

Owner-Builder Note: Michigan permits homeowners to act as their own general contractor for a personal-use residence, but requires personal participation in the work and prohibits building for resale under the owner-builder exemption.

Loans Available in the Following States

Owner Occupied

Loans available for owner occupied properties in the following states:

  1. California (CA)
  2. Connecticut (CT)
  3. Delaware (DE)
  4. Florida (FL)
  5. Iowa (IA)
  6. Massachusetts (MA)
  7. Michigan (MI)
  8. North Carolina (NC)
  9. New Jersey (NJ)
  10. New York (NY)
  11. Oregon (OR)
  12. Rhode Island (RI)
  13. Virginia (VA)
  14. Washington (WA)

Non-Owner Occupied

Loans available for non-owner occupied properties in the following states:

  1. Alaska (AK)
  2. Alabama (AL)
  3. California (CA)
  4. Colorado (CO)
  5. Connecticut (CT)
  6. Delaware (DE)
  7. Florida (FL)
  8. Georgia (GA)
  9. Hawaii (HI)
  10. Iowa (IA)
  11. Idaho (ID)
  12. Indiana (IN)
  13. Kansas (KS)
  14. Kentucky (KY)
  15. Massachusetts (MA)
  16. Michigan (MI)
  17. Maryland (MD)
  18. Maine (ME)
  19. Mississippi (MS)
  20. Missouri (MO)
  21. Montana (MT)
  22. North Carolina (NC)
  23. New Jersey (NJ)
  24. Nebraska (NE)
  25. New Mexico (NM)
  26. New York (NY)
  27. Ohio (OH)
  28. Oklahoma (OK)
  29. Oregon (OR)
  30. Pennsylvania (PA)
  31. Rhode Island (RI)
  32. South Carolina (SC)
  33. Tennessee (TN)
  34. Utah (UT)
  35. Virginia (VA)
  36. Washington (WA)
  37. West Virginia (WV)
  38. Wyoming (WY)

Frequently Asked Questions — Hiring a Builder Loan in Michigan

Q: What is a construction loan with builder in Michigan?

A: A construction loan with builder in Michigan is short-term financing for new home construction managed by a licensed GC. Normandy disburses funds in draws as construction milestones are completed. Interest-only payments apply on advanced funds. Land purchase may be included.

Q: How does custom home builder loan financing work in Michigan?

A: Custom home builder loan financing in Michigan through Normandy disburses funds tied to inspection milestones. Conforming amounts to $832,750 at 90% LTC; jumbo to $5M at 80% LTC. The borrower selects the licensed GC; Normandy funds the build.

Q: What do I need to finance building a home in Michigan?

A: To finance building a home in Michigan through Normandy, you need a residential lot (or land can be included in the loan), a licensed GC, and full income documentation for maximum LTV. Pre-qualification is typically 3 to 5 business days.

Q: What new home construction financing is available in Michigan?

A: Normandy offers new home construction financing in Michigan for conforming and jumbo loan amounts. The program covers single-family and 2–4 family owner-occupied builds. Minimum 750 mid FICO for maximum LTV. Foreign nationals are eligible.

Q: Is home builder financing available for less-than-perfect credit in Michigan?

A: Yes. Loans are available to borrowers with excellent to less-than-perfect credit, subject to underwriting. No minimum FICO is required for consideration, though a 750 mid FICO is required for the 90% conforming / 80% jumbo maximum LTV programs.

Draw Request Submitted

Thank you for requesting a draw.  You will receive an email or call confirming your draw request has been received within 1 business day.  If you do not receive confirmation, please contact our office at 800-390-7536.  Please notify us of any changes you wish to make to your request.  

Normandy Corporation

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