Secure Construction Funding & Calculate Loan Payments

Get tailored construction loans and easily calculate your payments for building projects of all kinds with expert guidance.

One Time Close

With a one-time close construction loan, you finance both the construction and the long-term mortgage for your new home at the same time in one transaction.

Two Time Close

With a two-time close construction loan, you have two separate loans for the construction of your new home. First, you will have a loan for the construction, and then once the home is finalized this loan is paid off by a separate loan for the long-term financing.

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Average Cost to Build a House per Square Foot$100 to $200

In Donnelly, Idaho, the cost to build a house ranges from $100 to $200 per square foot as of 2025, excluding land costs, according to Houzeo estimates. This varies based on materials, design, and site-specific factors like elevation in the mountainous region.

Average Land Cost per Acre$62,000

Land in Donnelly, Idaho, typically costs around $62,000 per acre in 2025, influencing total construction budgets for new builds, as per recent market data from Houzeo.

Average Total Cost to Build a House$285,000

Excluding land, the average cost to build a standard home in Donnelly, Idaho, is about $285,000 in 2025, based on Houzeo calculations for a typical 1,500-2,000 sq ft structure, helping estimate loan amounts needed.

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Construction Loans in Donnelly, Idaho

Building your dream home or starting a major construction project in Donnelly, Idaho, is an exciting endeavor, but it often comes with significant financial hurdles. At Summit Lending, we specialize in helping you overcome these challenges with customized construction loans. Located in the scenic Valley County, Donnelly offers a unique blend of small-town charm and access to outdoor recreation, making it a prime spot for residential and commercial builds. Our experienced mortgage brokers, with over 50 years of combined expertise, are ready to assist you in securing the funding you need across Idaho, including specific areas like Boise and Coeur d'Alene. We provide solutions for all types of projects, from custom homes near Lake Cascade to renovations in the heart of Donnelly.

What Are Construction Loans?

A construction loan is a short-term financing option designed to cover the costs of building or renovating a property. Unlike traditional mortgages that provide a lump sum, construction loans are disbursed in stages, known as draws, aligning with key milestones in the building process. This ensures funds are available for materials, labor, and other expenses as needed. At Summit Lending, we offer construction loans for various projects in Donnelly, Idaho, including:

Custom home builds for families seeking a permanent or vacation residence
Speculative homes for builders and developers in growing areas
Major renovations or additions to existing properties
Small commercial projects to support local business growth

Our mission is to simplify the financing process, allowing you to focus on creating your ideal space. Whether you're a homeowner or contractor in Donnelly, explore our Construction Loans page for more details or contact us at [email protected] for personalized assistance.

Types of Construction Loans Offered by Summit Lending

Construction loans vary based on the nature of your project and financial needs. At Summit Lending, we provide flexible options tailored to clients in Donnelly, Idaho, and beyond. Here are the primary types of construction loans we offer:

1. Construction-to-Permanent Loans

Known as a one-time close loan, this option finances both the construction phase and the permanent mortgage with a single application. After completion, the loan converts to a traditional mortgage without a second closing, saving time and reducing costs. This is a popular choice for homeowners in Donnelly and other parts of Idaho.

2. Stand-Alone Construction Loans

This short-term loan covers only the building phase. Once the project is finished, you'll secure a separate mortgage to pay off the construction loan. It's ideal for those with a long-term financing plan or who plan to sell the property after completion in areas like Valley County.

3. Renovation Loans

For those updating an existing property in Donnelly, a renovation loan covers costs for materials and labor. These loans are perfect for homeowners aiming to enhance their space or boost property value through significant improvements.

4. Owner-Builder Loans

If you plan to act as your own general contractor, an owner-builder loan provides funds to manage the construction process. This requires detailed planning and documentation but can save on contractor fees for experienced builders in Idaho.

For more information on which loan suits your needs, reach out to us at 385-200-1470 or visit our Contact Us page to speak with a loan expert.

How Do Construction Loans Work?

Understanding the mechanics of construction loans can help you prepare for a smooth financing experience in Donnelly, Idaho. Here's an overview of the process:

Application and Pre-Approval: Start by applying for a construction loan with Summit Lending. We review your credit, income, and project plans to determine eligibility and loan amount. Pre-approval sets your budget before you begin. Learn more on our Pre-Approval page.
Project Planning and Budgeting: Provide detailed plans, timelines, and budgets, including contractor bids and material costs. Our team ensures all documentation meets lender standards.
Loan Disbursement in Draws: Funds are released in stages based on milestones like foundation completion or framing. An inspector may verify progress before each draw.
Construction Phase: During building, you may make interest-only payments on disbursed funds, keeping monthly costs manageable.
Completion and Conversion: Upon completion, the loan converts to a permanent mortgage (for construction-to-permanent loans) or is paid off through a separate mortgage or property sale.

The process can be complex, but our brokers simplify it. Meet our experienced Loan Officers for tailored guidance in Donnelly.

Calculating Construction Loan Payments in Donnelly, Idaho

One of the most frequent questions we get at Summit Lending is how to calculate payments for construction loans. While amounts vary based on loan size, interest rate, and terms, we offer a general guide for planning your project in Donnelly. During the construction phase, most loans require interest-only payments on disbursed funds. For instance, if you've drawn $50,000 of a $200,000 loan at a 5 percent interest rate, your monthly interest payment would be roughly $208 ($50,000 x 0.05 / 12). As more funds are drawn, payments increase.

After construction, if the loan converts to a permanent mortgage, payments include principal and interest, akin to a traditional mortgage. The total cost depends on the loan term, such as 15 or 30 years, and the final rate. For accurate estimates, use our Loan Calculator to input your details and get real-time projections with current rates. Need help? Contact us via our Contact Us page or call 385-200-1470.

Benefits of Choosing Summit Lending for Construction Loans in Donnelly

We take pride in delivering exceptional service and customized financing solutions at Summit Lending. Here are reasons clients in Donnelly, Idaho, trust us with their construction loan needs:

Local Expertise: We understand construction challenges and regulations in Donnelly and Valley County, ensuring compliance and efficiency.
Personalized Guidance: Our brokers work closely with you to find the best loan for your project, budget, and timeline.
Streamlined Process: From application to closing, we ensure a straightforward, stress-free experience with clear communication.
Builder Support: We offer specialized services for builders via our Builder Portal, making us a trusted partner for professionals.
Competitive Rates: We strive to provide competitive interest rates and terms to minimize project costs.

Ready to start? Call us at 385-200-1470 or email [email protected] to discuss your Donnelly project.

Construction Loan Requirements

Qualifying for a construction loan in Donnelly, Idaho, often requires more documentation than a standard mortgage due to project risks. Common criteria include:

Credit Score: A minimum score of 680 is typically needed, though higher scores secure better rates.
Down Payment: Expect a down payment of 20 to 25 percent of project cost, though some programs offer lower options.
Debt-to-Income Ratio: Lenders prefer a DTI below 43 percent to ensure manageable payments.
Project Plans: Detailed blueprints, timelines, and budgets, plus contractor agreements, are essential.
Appraisal: An appraisal of the completed project's value determines loan eligibility.

Our team guides you through these requirements. First-time builders can explore our First-Time Home Buyer resources for added support.

Why Build in Donnelly, Idaho?

Donnelly, Idaho, located in Valley County, is a hidden gem for construction projects. With a population of just over 150, according to the U.S. Census Bureau, it offers a tight-knit community feel alongside breathtaking natural surroundings. Lake Cascade, a major attraction, provides opportunities for boating, fishing, and camping, making Donnelly a hotspot for vacation homes. The nearby Tamarack Resort draws tourists year-round for skiing and outdoor activities, boosting demand for local real estate. Data from the Idaho Department of Commerce indicates steady growth in Valley County, with increasing property values and new construction permits, reflecting a promising market for builders and homeowners.

Building in Donnelly also benefits from relatively lower land costs compared to larger Idaho cities like Boise, allowing for more affordable project starts. The area's zoning laws are accommodating for residential and small commercial builds, especially near recreational zones. Whether you're constructing a custom cabin, a family home, or a rental property, Summit Lending understands the local market dynamics. We help ensure your project aligns with Donnelly's growth trends and regulatory framework. Learn more about Idaho's real estate landscape in our Blog.

Construction Loans Across Idaho

While Donnelly is a focal point for many of our clients, Summit Lending serves construction needs across Idaho. From bustling areas like Boise to scenic spots like Coeur d'Alene, we tailor financing to local conditions. Idaho's diverse landscapes offer opportunities for custom homes, vacation properties, and commercial developments. Our expertise extends to nearby counties such as Adams County and Canyon County, ensuring comprehensive support wherever your project lies.

Why Construction Loans Are a Smart Choice in Donnelly

According to the U.S. Census Bureau, new residential construction spending nationwide exceeded 800 billion dollars in 2022, highlighting a growing demand for custom builds and renovations. In Donnelly, construction loans provide a practical way to fund projects without depleting personal savings or relying on high-interest credit. They offer flexibility to build on your timeline while managing costs effectively. Additionally, a well-planned construction project can significantly increase property value. The National Association of Realtors reports that home renovations can yield a return on investment of 60 to 80 percent or more, depending on scope and location. Partnering with Summit Lending means investing in Donnelly's promising future.

Additional Services for Donnelly Residents

Beyond construction loans, Summit Lending offers a range of mortgage solutions for Donnelly residents. If you're considering purchasing a home, explore our Purchase Loans. For those looking to refinance an existing property, check out our Refinance Loans. We also provide Commercial Loans for business infrastructure and Reverse Loans for older homeowners. Our comprehensive services ensure all your financing needs are met under one roof.

Get Started with Summit Lending Today

Ready to break ground on your construction project in Donnelly, Idaho? Summit Lending is here to guide you every step of the way. Our team of seasoned mortgage brokers and loan officers is dedicated to finding the right construction loan for your needs. Don't delay, contact us now for a personalized quote. Email us at [email protected], call 385-200-1470, or visit our office at 305 E Main Street Suite 202, Tremonton, UT 84337. You can also upload documents and start your application at this link.

Explore more about our services on our Mortgage Loans page or read client feedback on our Testimonials page. Learn about our mission and team on the About page. Summit Lending looks forward to being your trusted partner in building your future in Donnelly, Idaho.

Construction Loan AvailabilityAvailable through local and state programs

Construction loans are offered by banks like Bank of Idaho and state programs via the Idaho DEQ for wastewater-related projects, with invitations issued post-approval for eligible applicants in Donnelly, facilitating funding for builds.

Modular Home Construction PremiumUp to 20% savings vs. traditional

Modular homes in Donnelly, Idaho, through providers like Impresa Modular, can reduce building costs by up to 20% compared to site-built homes due to factory efficiency, aiding in lower loan requirements for custom constructions.

USDA Construction Loan EligibilityAvailable for rural Donnelly

Donnelly qualifies for USDA construction loans as a rural area, allowing single-close financing for land purchase and building with low down payments, per Rocket Mortgage guidelines, ideal for calculating affordable payments.