For many homebuyers, purchasing an existing home isn’t the only option. More people throughout Albuquerque and New Mexico are deciding to build a home that fits their family’s needs, lifestyle, and future plans. From choosing the perfect floor plan to selecting finishes and features, building a custom home gives you the opportunity to create a space that’s truly your own.
One of the biggest challenges many future homeowners face, however, is finding the right financing. Construction loans are different from traditional home loans, and not every bank or lender has the experience or loan programs necessary to guide borrowers through the process.
That’s where Ben Lucero and Indigo Mortgage can help.
For years, Ben Lucero has helped New Mexico families finance new home construction with loan programs designed to make building more affordable and less stressful. Whether you’re just beginning to explore the idea of building or already own land and are ready to break ground, Indigo Mortgage has construction loan options to fit a variety of situations.
What Is a Construction Loan?
A construction loan is a mortgage designed specifically to finance the construction of a new home. Unlike a traditional mortgage that provides the full loan amount at closing, construction loans typically fund the project in stages as construction progresses.
These funds, often called “draws,” are released at different phases of construction to pay for labor, materials, and other approved building expenses.
Once construction is complete, the loan either converts into a traditional mortgage or is replaced by permanent financing, depending on the type of construction loan you choose.
According to Ben Lucero, understanding these options early in the process can save borrowers both time and money.
Why More Buyers Are Choosing to Build
Today’s buyers are increasingly choosing new construction because it allows them to create a home that meets their specific needs instead of settling for an existing property.
Some of the benefits of building include:
- Personalized floor plans
- Modern kitchens and bathrooms
- Energy-efficient construction
- New appliances and mechanical systems
- Lower maintenance costs
- Builder warranties
- The ability to choose finishes and upgrades
For many families in Albuquerque and throughout New Mexico, building can be an excellent long-term investment.
Indigo Mortgage Offers Multiple Construction Loan Options
One of the biggest advantages of working with Ben Lucero at Indigo Mortgage is access to multiple construction loan programs.
Because every borrower has different financial goals, there isn’t a one-size-fits-all solution.
One-Time Close Construction Loans
A one-time close construction loan combines the construction financing and permanent mortgage into one loan.
This means you’ll only have one closing, which can save both time and money.
Many borrowers appreciate this option because it reduces paperwork, eliminates the need for a second closing, and provides peace of mind knowing the permanent financing is already in place before construction begins.
Two-Time Close Construction Loans
Some borrowers may benefit from a two-time close loan.
With this option, the construction financing is handled first. Once the home is completed, the borrower obtains a separate permanent mortgage.
Depending on your financial situation and future plans, Ben Lucero can help determine whether this option makes more sense than a one-time close loan.
Outstanding Construction Loan Options for Veterans
One of the programs Ben Lucero is most excited to offer is construction financing for eligible veterans.
Many veterans don’t realize they may qualify for a one-time close VA construction loan with 100% financing, even when purchasing the land as part of the project.
That means qualified veterans may be able to finance both the land purchase and the construction costs without a down payment.
This benefit can make homeownership much more attainable for military families looking to build their forever home in New Mexico.
Because VA construction loans have unique guidelines, working with an experienced lender like Ben Lucero is especially important.
Low Down Payment Options for Conventional Construction Loans
Not everyone qualifies for a VA loan, but that doesn’t mean building a home is out of reach.
Indigo Mortgage offers conventional construction loan programs requiring as little as 5% down, even if you’re purchasing the land and including those costs in the overall construction loan.
Many banks continue to require 20% down for construction financing, making it difficult for buyers to move forward with their plans.
According to Ben Lucero, these lower down payment options have helped many New Mexico families begin building sooner than they thought possible.
Already Own Land? Your Equity Could Help
Many future homeowners purchased land years ago with the intention of building someday.
If you’ve owned your property for a period of time, the land may have increased in value. In many cases, that equity can be applied toward your required down payment.
Rather than starting from scratch, your existing land ownership could provide a significant financial advantage.
Ben Lucero works with borrowers to review their property, determine available equity, and explore how it may be used during the construction loan process.
Indigo Mortgage Guides You Every Step of the Way
Building a home involves many moving pieces. You’ll likely work with builders, contractors, inspectors, appraisers, title companies, and local municipalities throughout the process.
For first-time builders, it can feel overwhelming.
That’s why Ben Lucero believes education and communication are just as important as financing.
Whether you’re simply researching construction loans or already have architectural plans in hand, Indigo Mortgage will guide you through each step, explain your financing options, answer your questions, and help keep your project moving forward.
Need a Builder? Indigo Mortgage Can Help
Finding the right builder is just as important as finding the right lender.
Over the years, Ben Lucero and Indigo Mortgage have built relationships with several well-established local builders throughout Albuquerque and New Mexico.
If you’re still searching for the right contractor, Ben Lucero may be able to recommend experienced professionals who have a reputation for quality workmanship and customer satisfaction.
Having trusted professionals on your side from the beginning can make the entire construction process much smoother.
Why Work with Ben Lucero?
Construction lending requires specialized knowledge. Unlike a standard home purchase, there are additional timelines, inspections, draw schedules, and financing considerations that must all work together.
That’s why experience matters.
For years, Ben Lucero has helped homeowners throughout Albuquerque and New Mexico successfully finance new construction projects. Rather than offering a single loan program, he works closely with each borrower to identify the financing option that best fits their budget, goals, and future plans.
At Indigo Mortgage, you’ll never feel rushed or pressured. Instead, you’ll receive honest advice, clear communication, and personalized guidance from start to finish.
Start Building Your Dream Home Today
If you’ve been thinking about building a home, now is an excellent time to explore your financing options.
Whether you’re purchasing land, already own property, are considering a VA construction loan, or simply want to learn more about the process, Ben Lucero and the team at Indigo Mortgage are here to help.
From one-time close construction loans to conventional financing with as little as 5% down, Indigo Mortgage has solutions that many borrowers don’t realize are available.
Before you begin your next building project, schedule a consultation with Ben Lucero. He’ll answer your questions, explain your financing options, and help you take the next step toward building the home you’ve always wanted.
Frequently Asked Questions
What is the difference between a construction loan and a traditional mortgage?
A construction loan finances the building process, while a traditional mortgage is used to purchase a completed home. Construction loans release funds in stages as the home is built.
Can I finance the land with my construction loan?
Yes. Depending on the loan program, Ben Lucero and Indigo Mortgage can often include both the land purchase and construction costs in one loan.
How much money do I need for a down payment?
Qualified conventional borrowers may be eligible for construction loans with as little as 5% down. Eligible veterans may qualify for up to 100% financing through certain VA construction loan programs.
Can I use the equity in land I already own?
In many cases, yes. If your land has appreciated in value, the equity may help satisfy part or all of your required down payment.
Why should I choose Ben Lucero at Indigo Mortgage?
Construction loans are more complex than traditional mortgages. Ben Lucero has years of experience helping New Mexico homebuyers navigate the construction financing process while providing personalized guidance from planning through completion.