Construction Loans in Tarrytown, NY

New construction financing works on a schedule tied to the build itself. Instead of handing over the full loan at closing, the lender releases money in draws after each phase passes inspection. Whether you are building a custom home in Tarrytown or working with a production builder elsewhere in New York, this guide covers loan types, builder approval, permits and the paperwork that keeps a project moving.

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Call to speak with a licensed loan officer about construction loans in Tarrytown. Programs vary by borrower, property and investor.

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New home building around Tarrytown

705,000Single-family units permitted (2025)

287Single-family units permitted in Westchester County (2025)

6%Homes built 2010 or later

$685,300Median home value

Tarrytown issued permits for 705,000 new single-family housing units in 2025, and Westchester County as a whole permitted 287. About 6% of the homes in Tarrytown were built in 2010 or later.

One closing or two: choosing a loan structure

A construction-to-permanent loan, sometimes called a single-close or one-time close loan, covers both the build and the long-term mortgage under one set of closing documents. During construction you usually pay interest only on the funds drawn so far. Once the home is finished, the loan rolls into regular payments without a second closing.

A construction-only loan funds the build and must be paid off when the home is complete, usually by a separate permanent mortgage. That means two applications and two closings, but it can give you room to shop for the long-term loan later. Each path has tradeoffs, and programs vary by borrower, property and investor.

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Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

How draws, inspections and the builder fit together

Before closing, you and your builder agree on a draw schedule that splits the budget into phases, such as foundation, framing, roofing, mechanical systems and finishes. When a phase is done, the builder requests a draw. The lender sends an inspector to confirm the work, then releases funds for that stage.

Most lenders also review the builder before approving the loan. They may ask for a license, proof of insurance, references and a record of completed homes. Some programs limit owner-builder projects. A signed construction contract, detailed plans and a line-item cost breakdown help the lender match each draw to real progress on site.

Who this tends to fit

You are replacing a teardown with a new home on the same site
You want to buy land and finance the build under one loan
You want to build a modular or factory-built home that is set on a permanent foundation
You are a veteran exploring VA construction financing for a new primary residence
You are interested in an FHA one-time close loan for new construction

Local offices and New York rules to know

Deed and mortgage recording: Westchester County Clerk (Land Records). Your mortgage is recorded here after closing.

New York recording costs: Mortgage recording tax (state, plus local mortgage recording taxes in New York City, Yonkers and some counties), paid to the county recording office when the mortgage is recorded; real estate transfer tax on deeds/conveyances (filed with Form TP-584, or TP-584-NYC in New York City), including the additional 'mansion tax' on higher-priced residential purchases, which is paid by the buyer. Your Loan Estimate lists the taxes that apply to your loan.

Land, plans and permits for building in Tarrytown

If you already own your lot, its value or equity may count toward your contribution, depending on the program. If you are buying land as part of the project, some loans can fold the purchase into the construction financing. Either way, the lender will want to see a survey, title work and confirmation that utilities and road access are available.

Plans and specifications support the appraisal, which values the home as it will be when finished. Local building permits, zoning approval and any septic or well permits must be in place before work begins. Gathering these early prevents delays that can push back your closing.

Before you call

Proof of land ownership, a purchase contract for the lot or a payoff statement for any land loan
Complete plans, specifications and a line-item construction budget
Your builder's license, insurance certificates and references
Income, asset and credit documents for every borrower, plus a plan for cost overruns
A proposed draw schedule tied to construction phases

Questions Tarrytown borrowers ask about construction loans

Do I make payments while the house is being built?

On many construction loans, you pay interest only on the amount drawn so far, so payments typically start small and increase as more funds are released. Some loans allow interest to be paid from a reserve built into the budget. Once construction ends, regular principal and interest payments begin. Ask the lender exactly how payments work during the build period on the loan you are considering.

What happens if construction runs over budget or behind schedule?

Cost overruns are usually your responsibility unless your contract says otherwise, and lenders may require you to show funds to cover them before releasing more draws. Delays can create problems if a rate lock or loan commitment expires before completion. Building a contingency into your budget, choosing an experienced builder and asking how the lender handles extensions can help you plan for surprises.

How is a home that does not exist yet appraised?

The appraiser estimates the value of the home as it will be once construction is complete, using your plans, specifications, budget and recent sales of comparable new homes. This is often called an as-completed or subject-to-completion appraisal. Detailed, accurate plans help produce a reliable value. If the appraised value comes in lower than expected, you may need to adjust the plans or contribute more funds.

Does my builder need to be approved by the lender?

Most lenders review the builder before approving a construction loan. They commonly ask for a state or local license, general liability insurance, references and a history of completed projects. Some lenders keep a list of builders they have already reviewed. Owner-builder projects, where you act as your own general contractor, are restricted or not allowed under many programs, so ask early if you plan to manage the build yourself.

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Get answers about construction loans for a home in or around Tarrytown. Subject to credit approval; programs vary.