Building a new home in North Las Vegas is exciting, but the financing can feel like a maze. You want clarity on loan types, timing, rate locks, and all the upgrade decisions that affect your bottom line. With long build timelines and fast‑moving rates, small missteps can turn into big costs. This guide breaks down your options, the most common traps, and practical steps to protect your budget from contract to closing. Let’s dive in.
Your construction loan options
One‑time close construction‑to‑permanent
A construction‑to‑permanent loan rolls your build financing and your long‑term mortgage into a single closing. You sign once, the lender funds the build in stages, then the loan converts to a standard mortgage when the home is complete. You typically save on closing costs compared with two separate loans. These programs exist in conventional, FHA One‑Time Close, and VA formats, each with its own eligibility rules and down payment requirements.
What to know:
- Underwriting tends to follow permanent mortgage standards up front.
- You pay interest on funds as they are drawn during construction.
- Fewer closings can mean fewer fees overall.
Two‑close construction‑only plus end loan
With a two‑close approach, you close first on a short‑term construction loan. You pay interest only during the build. When the home is finished, you close again on a separate permanent mortgage. This can offer flexibility to shop the best end‑loan when the home is closer to completion, but it also exposes you to rate risk and duplicate closing costs.
What to know:
- You may face two sets of closing fees and two appraisals.
- If rates rise before you lock the end loan, your payment can jump.
- Coordination between the builder’s draw schedule and lender approvals is critical.
Which path fits you
If you value cost predictability and fewer closings, a one‑time close is often worth a look. If you prioritize flexibility and think rates could drop, a two‑close path can work with careful rate planning. In both cases, confirm your down payment, documentation, and builder requirements early so you are not surprised mid‑build.
Mechanics and costs to expect
Draws and inspections
Lenders fund your builder in stages tied to milestones like foundation, framing, and final finishes. Each draw usually requires an inspection. A common trap is a mismatch between the builder’s payment milestones and the lender’s draw approvals, which can create short‑term funding gaps. Ask for a written draw schedule that aligns both sides before you sign.
Interest during the build
You pay interest only on the amounts that have been drawn. Some loans include an interest reserve that covers these payments during construction. If yours does not, budget for monthly interest throughout the build. Clarify whether interest will be paid out of pocket each month or added to your balance at conversion.
Fees and deposits
Construction loans often include origination, underwriting, inspection, appraisal, and plan review fees, plus title and settlement costs. Builders may also require deposits for options and design center selections that can become non‑refundable after certain deadlines. Do not confuse these with earnest money. Get each deposit documented with refund rules and timing in writing.
Timeline and lock windows
New‑build timelines are often 4 to 12 months or more. Standard rate locks for purchase loans are 30 to 90 days, which rarely cover an entire build. You will likely need extended lock tools and a strategy to manage rate risk. Start that conversation with your lender before you finalize the contract.
Rate protection for long builds
Extended locks
Many lenders offer longer rate locks such as 180, 270, or even 360 days. These come with fees or slightly higher rates. Availability depends on lender policy and market conditions. Ask for a written breakdown of costs to extend by 30, 60, or 90 days so you can compare offers.
Float‑downs and re‑locks
A float‑down allows you to capture a lower rate if the market falls during your lock period. Sometimes it is included, sometimes it costs extra. There are often limits on when and how often you can use it. With some one‑time close loans, the conversion rate defaults to market at completion unless you lock specific terms in writing. Clarify this up front.
Builder incentives and buy‑downs
Builders sometimes offer closing credits, extended‑lock assistance, or temporary rate buy‑downs to reduce your early payments. These can be valuable, but they usually require using the builder’s preferred lender and have strict terms. Review the fine print and confirm the incentive in your purchase agreement.
Put it in writing
Verbal promises about lock fees, float‑downs, or builder‑paid concessions can evaporate. Get every rate‑related term documented with duration, costs, start date, and what happens if construction is delayed. Make sure the contract states who pays for any lock extensions.
Upgrades without budget blowouts
Allowances and change orders
Your contract will outline a base price plus allowances for finishes like countertops or flooring. If your selections exceed the allowance, you pay the difference. After the contract is signed, any adjustments become change orders. These typically add cost and may affect your schedule.
Common upgrade drivers
In North Las Vegas, buyers often invest in kitchen finishes, cabinetry, flooring, lighting and electrical packages, enhanced HVAC, structural options like covered patios, and lot premiums for views or location. Design centers and vendors may apply markups on options, which means big‑ticket items can add up fast. For significant upgrades, consider getting independent quotes to benchmark pricing.
Budgeting rules of thumb
- Set aside a contingency of at least 5 to 10 percent of the contract price.
- Itemize allowances by product and unit, such as per square foot or per linear foot.
- Confirm whether allowances include labor, materials, or both.
- Track all deposits and when they become non‑refundable.
Contract protections to request
- A detailed list of what the base price includes and the allowance amounts for each category.
- A cap or approval threshold for change orders, such as buyer approval required for any change over a set dollar amount.
- A schedule showing selection deadlines and when funds are due.
- Clear language on who pays for extra permitting or code‑related changes discovered during construction.
North Las Vegas specifics to know
Permits and impact fees
For homes within the City of North Las Vegas, permits are issued through the City’s Building and Safety department. Properties in unincorporated areas go through Clark County Building and Fire Prevention. Impact fees, sewer and water connections, and meter charges may apply. These can be included in the sale price or billed separately to you. Confirm the contract language so you know what you are responsible for.
Utilities and HOAs
Expect coordination with NV Energy for electric, Southwest Gas for gas, and local water providers within the Southern Nevada Water Authority network. Builders typically manage utility hookups, but verify timing and who pays which fees. Many new communities are within HOAs or master‑planned developments. Review the CC&Rs early so you understand rules for exteriors, landscaping, and future upgrades. Note any initiation or transfer fees and recurring dues in your budget.
Appraisals and incentives
Appraisers in fast‑changing new‑home areas evaluate comparable sales that may not fully reflect lot premiums, heavy upgrade spend, or builder incentives. If your contract includes significant upgrades or a premium lot, ask how your lender’s appraiser will handle those items. Be prepared for the possibility of an appraisal shortfall that could require extra cash at closing.
Assistance programs
Down payment assistance is sometimes available through state and local programs, including offerings from the Nevada Housing Division. Program rules change, and not all programs work with every loan type or construction scenario. Verify eligibility and timing with your lender before you finalize the contract.
Checklist: questions to ask
Lender
- Which product fits me best and why: one‑time close or two‑close? What are the down payment and credit requirements?
- Do you offer extended locks, float‑downs, or buy‑downs on construction loans? What are the fees and maximum durations?
- How is interest during construction handled: monthly payments, interest reserve, or capitalized?
- What are the inspection and draw procedures and costs? How many inspections are typical?
- What documents do you require from the builder, and how long do draw approvals take in Clark County?
Builder or sales rep
- Provide a line‑item list of what is included in the base price and each allowance.
- Show a payment schedule, deposit refundability, and what can trigger forfeiture.
- If you offer lender incentives, provide exact written terms and any conditions.
- Who pays for permit, impact, and utility connection fees? Are they included in the purchase price?
- Explain the change‑order process, pricing method, and how changes affect the schedule.
Inspector or attorney
- Have a construction‑savvy real estate attorney review your contracts, especially rate‑lock guarantees and builder concessions.
- Use a qualified third‑party inspector for critical milestones if your lender does not require independent inspections.
Red flags to pause for
- Any concession or rate promise not written into the sales contract.
- Broad or vague allowances without itemized scope or caps.
- Pressure to sign with non‑refundable deposits before full terms are provided.
- Required use of a lender without clear, written incentive terms.
- No plan to resolve disputes over change‑order pricing or inspection results.
How Campbell Luxury Group helps
You deserve a smooth, informed path from lot selection to keys in hand. With hands‑on buyer representation and concierge‑style transaction management, we help you compare financing pathways, align builder and lender milestones, and structure contracts that protect your rate strategy and upgrade budget. We coordinate with your lender, builder, and inspector, keep your deadlines tight, and anticipate local permit and utility items that can affect timing and cost.
If you are planning a new build in North Las Vegas, we can guide you through selections, deposit schedules, and appraisal strategy while keeping your long‑term goals front and center. Ready to move forward with confidence? Connect with Campbell Luxury Group to map your plan and timeline.
FAQs
What is a construction‑to‑permanent loan for a new build?
- It is a single loan that funds construction with draws, then converts to a standard mortgage at completion, usually reducing total closing costs compared with two separate loans.
How do extended rate locks work on new builds in North Las Vegas?
- Lenders may offer 180 to 360 day locks for a fee or slightly higher rate, sometimes with a float‑down option. Always get the term, cost, and conditions in writing.
How much should I budget for upgrades on a new home?
- Set aside at least 5 to 10 percent of the contract price as a contingency, itemize allowances, and get quotes for big‑ticket items to avoid surprise overages.
Who pays permit and utility connection fees for new construction?
- It depends on your contract. Some builders include fees in the price, while others pass them to the buyer. Confirm responsibilities in writing before you sign.
Can I use VA or FHA for a North Las Vegas new build?
- Many lenders offer FHA and VA one‑time close construction loans, subject to program rules and eligibility. Verify availability and builder acceptance early.
What if the appraisal comes in low on a home with upgrades?
- You may need to bring more cash, renegotiate upgrades, or adjust closing terms. Ask your lender how appraisers treat lot premiums and builder incentives.
Do I have to use the builder’s preferred lender to get incentives?
- Often yes. Incentives like rate buy‑downs or credits are typically tied to using the preferred lender. Review the exact terms and compare total costs before deciding.
