Thinking about building your custom home on a Laveen acre? You are not alone. Space, views, and the freedom to choose your layout are big draws, but financing and permitting work differently than a standard home purchase. In this guide, you’ll learn the loan paths that fit builds in Laveen, what to check with the City of Phoenix or Maricopa County, and how to prep so lenders say yes. Let’s dive in.
Your main loan paths
Construction-to-permanent
A single loan funds the build in stages and converts to your long-term mortgage at completion. You usually pay interest only during construction, then switch to full payments after conversion. Rules on disclosures and timing are outlined by the CFPB’s Regulation Z, which helps you understand how construction phases are treated in mortgage disclosures (CFPB guidance). Pros include one closing and the ability to lock your permanent rate with some lenders; cons include fewer lenders offering this option and sometimes higher pricing (construction loan basics).
Stand-alone construction loan
This is a short-term loan just for the build. When the home is finished, you apply for a separate mortgage and close again. The upside is flexibility to shop your permanent loan later. The tradeoff is a second closing, possible higher rates later, and added costs (how construction loans work).
Lot or land loan
If you are buying the acre first, a land loan can bridge the gap until you are ready to build. Terms depend on whether the land is raw or a buildable lot with nearby utilities. Down payments are often higher and rates can be above standard mortgages. Typical land loan down payments range from about 20 to 50 percent depending on the land type (land loan overview).
Government-backed paths
- USDA: The Single-Family Guaranteed program can support one-time-close construction in eligible rural areas and may offer low or zero down. Many Phoenix-area parcels fall in ineligible zones, so check each address on the USDA map before you plan on it (USDA program page).
- VA: Some VA-approved lenders offer VA one-time-close construction loans for eligible Veterans and Service members. Builder approval and extra documentation are common (VA Home Loans).
- FHA: FHA has limited construction-to-perm options and they are not widely available. FHA 203(k) is for renovation rather than ground-up new builds.
City vs County checklist
Laveen spans both the City of Phoenix (Laveen Village) and unincorporated Maricopa County. Your parcel’s location affects permits, impact fees, and utility rules. Confirm the APN and which agency issues your building permit before you apply for financing.
- Impact fees in Phoenix: If your acre is inside city limits, budget for building permits, plan review, and development impact fees paid at permit issuance. Phoenix publishes estimates by area, including Laveen East and West (impact fee estimates). Add these to your cash flow plan.
- Onsite wastewater (septic) in County areas: Parcels outside city sewer often need a permitted septic system. Maricopa County Environmental Services requires soil and site evaluations, plan review, and permits. Lenders commonly want proof of approved wastewater plans before funding (onsite wastewater FAQ).
- Water source: Inside Phoenix, municipal water and sewer rules apply. Outside city limits, you may need a private well or a private water company. Arizona’s exempt well rules allow small domestic wells with a notice of intent, subject to siting and setback rules. Lenders will require evidence of a legal water source (ADWR well NOI).
- Legal lot & zoning: Permits are only issued for legal, buildable lots, and zoning must allow a single-family home. Confirm with the City of Phoenix Planning & Development or Maricopa County before you draft your loan budget (Phoenix PDD resources).
Financing strategies for Laveen acres
Buy the lot now, build later
You use a lot or land loan to secure the acre, then apply for a construction loan when your plans are ready. Pros: you lock in your site and have time to design. Cons: two loans and typically larger down payments on land.
One-time close construction-to-perm
You close once on a construction-to-permanent loan, then build and convert to your mortgage automatically. Pros: one closing and potential early rate lock. Cons: fewer lenders, program-specific rules, and pricing may be higher.
Two-close approach
You finance construction with a stand-alone construction loan, then refinance into a permanent mortgage at completion. Pros: flexibility to shop the best long-term rate later. Cons: rate risk, extra closing costs, and two approvals.
Note: Program terms, rates, and fees change. Always verify current details with your lender and the City or County.
What lenders will ask for
Lenders underwrite construction differently than a resale. Expect the following:
- Approved builder: Many lenders require a licensed builder and a signed contract with a draw schedule (construction loan overview).
- Plans and budget: Your full set of plans, cost breakdown, timeline, and contingencies.
- Appraisal for “to-be-built” value: Lenders use a construction appraisal to support the loan amount (construction mortgage appraisal and draws).
- Credit, income, and reserves: Construction loans often require stronger credit and higher reserves. Conventional down payments commonly run from about 10 to 25 percent depending on the program.
- Draws and inspections: Funds release in stages after inspections confirm work is complete (construction mortgage appraisal and draws).
Pre-application checklist for Laveen
Use this quick list before you shop lenders:
- Confirm jurisdiction: Is the parcel inside Phoenix or unincorporated Maricopa County? Get the APN and verify who issues the permit.
- Validate a legal buildable lot: Confirm zoning allows a single-family home and that the lot was created legally.
- Map your utilities: Get written confirmation of water and sewer availability in Phoenix, or well status plus septic requirements in County areas.
- Budget impact fees and permits: Include City of Phoenix impact fees and plan review costs if inside city limits.
- Choose your builder: Line up a licensed builder who will sign a standard contract with a draw schedule.
- Pick your loan path: Decide between land loan first, one-time close, or two-close based on your timeline and risk tolerance.
- Gather documents: Plans, specs, cost breakdown, timeline, income docs, and reserves.
Your next steps
- Call Phoenix Planning & Development for fee and permit questions if your parcel is inside the city. Review the latest impact fee estimates and fee schedules on the City’s site (impact fee estimates, PDD resources).
- For County parcels, review septic and well steps with MCESD and ADWR so you know what lenders will require (onsite wastewater FAQ, ADWR well NOI).
- Speak with lenders who offer construction loans that fit your plan. Ask about builder approval, rate locks, draw schedules, and conversion terms under their program.
Want a local, hands-on team that can help you weigh costs, plans, and timelines before you apply? We combine real estate guidance with in-house contractor expertise for West Valley builds. Reach out to Imelda Reyes to talk through your Laveen acre. Hablamos español.
FAQs
Can I use USDA to build in Laveen?
- Possibly. USDA allows single-close construction in eligible rural areas, but many Laveen addresses are in ineligible zones, so check the USDA property eligibility for each address (USDA program page).
Do VA construction loans work in Laveen?
- Yes. Some VA-approved lenders offer VA one-time-close construction loans, but availability varies and the lender will require builder approval and extra documentation (VA Home Loans).
Can I finance a lot without city sewer?
- Often yes, but you will need a permitted wastewater solution (septic or engineered system) and an approved water source before closing since lenders require evidence of legal utilities (onsite wastewater FAQ).
How much cash do I need to start?
- Lot loans often require about 20 to 50 percent down depending on land type, and many construction loans need 10 to 25 percent down plus design, permit, and impact fee costs paid upfront (land loan overview).
What is the difference between one-time close and two-close?
- One-time close combines construction and permanent financing with one closing and automatic conversion, while two-close uses a separate short-term construction loan followed by a second permanent mortgage closing (construction loan basics).
