What is the minimum down payment on a construction loan?

On a purchase transaction, at the time of closing the borrower must put a minimum of 15% down payment on the sales price of the property or as-is value (whichever is less).

On a refinance transaction, the borrower must have at least 15% equity at the time of closing based on the outstanding loan balance(s) being paid off and the property’s appraised as-is value.

At completion of construction, the borrower must have at least 20% equity based on the total borrowed loan amount and the property’s appraised as-complete value. 

This potential cash burden on the borrower would need to be evidenced by bank statements at the time of approval and those funds would supplement bank financing over the course of the construction project.