Short answer
When the builder owns the land and builds the house, you usually get a regular purchase mortgage, not a construction loan, and close when the home is finished and has its certificate of occupancy. The main differences are timing and paperwork: the builder's own contract, a deposit schedule, a rate lock that may need to run longer, and a first property tax bill that may not yet include the finished house.
Do I need a construction loan?
Usually not. If the builder owns the lot and pays for the build, you buy the finished home with a regular mortgage, such as conventional, FHA, VA or USDA where the home is eligible. If you own the land or hire the builder yourself, that is a construction loan instead; see construction loans in NH.
What's different about a builder's contract?
Builders usually use their own purchase agreement instead of the standard form. Read the deposit schedule, what happens if construction runs late, the allowances for finishes, the warranty, and the financing contingency. Deposits for upgrades may not be refundable. A real estate agent or attorney who works with new construction can review it with you. See financing contingencies and earnest money.
How long should my rate lock be?
A standard rate lock may expire before a house that isn't finished yet can close. Longer locks are available but can cost more, and some lenders let you lock later once the closing date is firm. Tom can compare your options as the build moves along, so your pre-approval and lock line up with the real finish date. See how rate locks work.
Should I use the builder's preferred lender?
Builders sometimes offer an incentive, such as help with closing costs, if you use a lender they name. You can choose any lender you like. Compare the incentive with the full offer on each Loan Estimate, including the rate, fees and cash to close, before you decide. See how to read a Loan Estimate and seller credits and buydowns.
What has to happen before closing?
The town issues a certificate of occupancy after its final inspections. The lender usually needs that, a final appraisal or completion report, and proof that a new septic system or well was approved where the home has one. Schedule your own inspection and a walk-through before closing, even on a new home, and make a list of anything the builder still has to finish.
Why might my first property tax bill be low?
New Hampshire towns assess property as of April 1 each year. If the house wasn't finished on April 1, the first bill may tax only the land or a partly built house. Once the town assesses the finished home, the tax can jump, and so can the escrow part of your payment. Tom estimates your payment on the finished home, not the first bill. See NH tax bills and escrow.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.