Calculate Construction Loan Payments in 84020, Utah

Discover tailored financing solutions for your construction projects in Draper, UT (84020). Use our tools to calculate loan payments and start building your dream with Summit Lending today!

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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Population of 84020 Zip Code, Utah~50,000

The population of the 84020 Zip Code in Utah is approximately 50,159 according to current US Census data. Estimates vary slightly, with Draper city (which comprises most of the zip code) at 51,017 in the 2020 census and 50,200 in 2023.

Average Construction Cost per Square Foot in 84020 Zip Code, Utah$150 - $250

The average construction cost per square foot in Draper, UT (84020) ranges from $150 to $250 as of 2025, varying by build type, materials, and location specifics. This is based on Utah-wide estimates, with costs potentially higher for custom or luxury homes.

Number of Building Permits Issued in 84020 Zip Code, UtahAvailable upon Request

The exact number of building permits issued in the 84020 zip code (Draper, Utah) for 2023 is not directly available in public search results but can be obtained through public records requests to the Draper City Building Department, as evidenced by ongoing FOIA requests for remodel and building permit data.

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Construction Loan Payment Calculator for 84020 Zip Code, Utah

Embarking on a construction project in Draper, Utah (84020 Zip Code), is an exciting endeavor, whether you're building a custom home, renovating an existing property, or developing a commercial space. However, financing such projects often comes with unique challenges that require specialized solutions. At Summit Lending, based in Tremonton, UT, we are committed to helping residents and builders in the 84020 area secure the funding they need through our tailored construction loans. With over 50 years of combined experience, our mortgage brokers are equipped to guide you through the process of calculating loan payments and securing the best financing options for your project. Serving Utah, Idaho, Wyoming, and Texas, we bring local expertise and personalized service to every client, ensuring your vision becomes a reality.

Why Choose Draper, UT (84020) for Your Construction Project?

Draper, located in the 84020 Zip Code, is one of Utah's fastest-growing communities, nestled in the southeastern corner of Salt Lake County with easy access to both Salt Lake City and Utah County. According to the U.S. Census Bureau, Draper's population has grown significantly over the past decade, reaching over 51,000 residents by 2022, driven by its high quality of life, excellent schools, and proximity to major employment centers like Silicon Slopes, Utah's tech corridor. The area is also known for its scenic beauty, with the Wasatch Range providing a stunning backdrop for custom homes and outdoor recreational opportunities. The real estate market in Draper has seen steady appreciation, with median home prices rising to approximately $600,000 in 2023, as reported by Zillow, making it an attractive location for both residential and commercial construction. Whether you're building a family home near Corner Canyon or developing a commercial property along State Street, Summit Lending can help you calculate and secure the financing you need.

What Are Construction Loans and How Can They Help in Draper, UT?

A construction loan is a short-term financing solution designed to cover the costs associated with building or renovating a property. Unlike traditional mortgages, which provide a lump sum, construction loans are disbursed in stages, or "draws," corresponding to key milestones in the construction process. This structure ensures that funds are available for materials, labor, and other expenses as needed. At Summit Lending, we offer a variety of construction loans tailored to the needs of Draper residents and builders in the 84020 Zip Code, including:

Custom home builds for families looking to settle in Draper's scenic neighborhoods
Speculative homes for developers capitalizing on the area's growth
Major renovations for homeowners updating properties in established communities
Commercial construction projects along Draper's bustling commercial corridors

Our goal is to simplify the financing process, allowing you to focus on creating your ideal space. Whether you're a homeowner near SunCrest or a contractor working on a project in downtown Draper, Summit Lending has the expertise to support you. Visit our Construction Loans Page for more details on our offerings.

Types of Construction Loans Available in Draper, UT (84020)

At Summit Lending, we understand that every construction project in Draper is unique, which is why we offer a range of loan options to suit diverse needs. Here are the primary types of construction loans we provide:

1. Construction-to-Permanent Loans

Also known as a "one-time close" loan, this option allows you to finance both the construction phase and the permanent mortgage with a single loan. After construction is complete, the loan converts to a traditional mortgage without a second closing, saving you time and reducing costs. This is an excellent choice for Draper residents planning to build and stay in their new home long-term.

2. Stand-Alone Construction Loans

This short-term loan covers only the building phase, requiring a separate mortgage to pay off the balance once the project is finished. It's ideal for developers in the 84020 area who plan to sell the property after completion or have alternative long-term financing arranged.

3. Renovation Loans

For homeowners in Draper looking to upgrade older properties or increase value through significant improvements, renovation loans cover costs like materials and labor. This is particularly relevant in areas like Hidden Valley, where many homes are ripe for modern updates.

4. Owner-Builder Loans

If you plan to act as your own general contractor in Draper, an owner-builder loan provides the funds to manage the project yourself. While this requires detailed planning and documentation, it can save on contractor costs for experienced builders.

Ready to explore your options? Contact Summit Lending today at [email protected] or call 385-200-1470 to discuss your project in the 84020 Zip Code.

How to Calculate Construction Loan Payments for Projects in Draper, UT

One of the most critical aspects of planning a construction project is understanding the cost of financing. At Summit Lending, we make it easy for Draper residents to calculate construction loan payments with our user-friendly tools and expert guidance. During the construction phase, most loans require interest-only payments on the funds disbursed. For instance, if you've drawn $75,000 of a $300,000 loan at a 5% interest rate, your monthly interest payment would be approximately $312.50 ($75,000 x 0.05 / 12). As more funds are drawn for milestones like framing or plumbing, the interest payments increase accordingly.

Once construction is complete, and if you’ve opted for a construction-to-permanent loan, the payment structure shifts to include both principal and interest, similar to a standard mortgage. The total cost depends on the loan term (e.g., 15 or 30 years) and the final interest rate. Factors specific to Draper, such as property values and local construction costs (which, according to HomeAdvisor, average between $150-$250 per square foot for custom homes in Utah), also influence the overall loan amount and payments.

For a personalized estimate, use our Loan Calculator to input your project details and get real-time payment projections based on current interest rates. If you need assistance, our team is just a call away at 385-200-1470 or visit our Contact Us Page to schedule a consultation.

Steps to Secure a Construction Loan in Draper, UT (84020)

Navigating the construction loan process can seem daunting, but Summit Lending simplifies it with a clear, step-by-step approach tailored to the needs of Draper residents:

Application and Pre-Approval: Start by applying for a loan with Summit Lending. We’ll review your credit, income, and project plans specific to the 84020 area to determine eligibility and loan amount. Pre-approval helps you set a realistic budget before breaking ground. 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 requirements, considering local Draper regulations and costs.
Loan Disbursement in Draws: Funds are released in stages based on construction milestones. An inspector may verify progress at your Draper site before each draw is disbursed.
Construction Phase: During building, you may make interest-only payments on the disbursed amount, keeping monthly costs manageable.
Completion and Conversion: Upon completion, the loan converts to a permanent mortgage (if applicable) or is paid off through a separate financing option or property sale.

Our experienced brokers are here to guide you through every step. Meet our team on the Loan Officers Page and get personalized support for your Draper project.

Benefits of Partnering with Summit Lending in Draper, UT

Choosing Summit Lending for your construction loan in the 84020 Zip Code comes with numerous advantages:

Local Expertise: We understand Draper's zoning laws, building codes, and market trends, ensuring compliance and efficiency for your project.
Personalized Service: Our brokers work one-on-one with you to find the best loan product for your specific needs and budget in Draper.
Streamlined Process: From application to closing, we prioritize clear communication and a stress-free experience.
Builder Support: Contractors and developers can access specialized services via our Builder Portal, making us a trusted partner in the 84020 area.
Competitive Rates: We offer competitive interest rates and terms to minimize the overall cost of your construction project.

Ready to start? Contact us today at [email protected] or call 385-200-1470 to speak with a construction loan expert.

Construction Loan Requirements for Draper Projects

Qualifying for a construction loan often requires more documentation than a standard mortgage due to the risks associated with building projects. Common criteria include:

Credit Score: A minimum score of 680 is typically required, though higher scores can secure better rates.
Down Payment: Expect to pay 20-25% of the total project cost upfront, though some programs may offer lower options.
Debt-to-Income Ratio: Lenders prefer a DTI ratio below 43% to ensure you can manage payments.
Project Plans: Detailed blueprints, timelines, and budgets specific to your Draper project are essential.
Appraisal: An appraisal of the completed project's value in the 84020 market is often required.

Our team at Summit Lending will help you gather the necessary documents and meet these requirements. First-time builders can explore additional resources on our First-Time Home Buyer Page.

Why Construction Loans Are a Smart Investment in Draper, UT

According to the National Association of Home Builders, construction spending in the U.S. continues to rise, with residential projects alone accounting for billions annually. In Draper, the demand for new homes and commercial spaces is fueled by population growth and economic development, particularly in tech and retail sectors. Construction loans provide a practical way to fund these projects without depleting personal savings or resorting to high-interest credit options. Moreover, a well-executed project in the 84020 Zip Code can yield significant returns, with renovations often recouping 60-80% of their cost upon resale, per the National Association of Realtors. Partnering with Summit Lending ensures you're not just financing a build—you're investing in Draper's promising future.

Get Started with Summit Lending in Draper, UT Today

Ready to break ground on your construction project in Draper, UT (84020)? Summit Lending is here to support you every step of the way. Our experienced mortgage brokers and loan officers are dedicated to finding the right construction loan for your needs, ensuring a seamless process from application to completion. Don’t wait—contact us now for a personalized quote. Reach out via email at [email protected], call us at 385-200-1470, or visit our office at 305 E Main Street Suite 202, Tremonton, UT 84337. Explore more about our services on our Mortgage Loans Page or read client feedback on our Testimonials Page. Let Summit Lending be your trusted partner in building the future you envision in Draper, UT!

Average Land Price per Acre in 84020 Zip Code, Utah$1,161,193

The average land price per acre in the 84020 zip code (Draper, Utah) is approximately $1,161,193, based on current listings of about 4 acres of land for sale as reported in recent real estate data.

Construction Industry Growth Rate in 84020 Zip Code, UtahSignificant Expansion

The construction industry in Draper, Utah (84020) is experiencing significant expansion driven by major projects like 'The Point,' a 600-acre mixed-use development. Phase one began in December 2024 and is expected to take 15 years, with full development over 30 years. This aligns with city master plans to support infrastructure for growth, despite a broader downward trend in Utah's new home construction in 2023.

Average Home Size for New Constructions in 84020 Zip Code, Utah~3,300 sq ft

Based on the median listing price of $900,000 for new homes in 84020 and the area's median price per square foot of $269, the implied average home size for new constructions is approximately 3,300 square feet.