Construction-to-Permanent Loans in Lake County: Financing Land and Building Your Dream Home in Clermont and Groveland (2025 Guide)

Thinking about building a new home in Lake County, Florida, specifically Clermont or Groveland? A construction-to-permanent loan is a great option to finance both your land purchase and construction costs in a single convenient mortgage.

In this comprehensive guide, we’ll cover financing details across three main budget categories: under $300,000, $300,000–$500,000, and $500,000–$1,000,000. Additionally, we'll discuss the local zoning and building regulations for alternative home types like tiny homes, mobile/manufactured homes, modular/prefabricated homes, Boxabl-style small modular units, and 3D-printed homes.

Construction-to-Permanent Loan Options by Budget in Lake County

Under $300,000

If your budget is under $300k, you're likely considering affordable options like tiny homes, small modular homes, or manufactured housing.

Available Loan Programs:

• FHA One-Time Close Loan: 3.5% down payment, perfect for first-time homebuyers.

• VA Construction Loans: 0% down for eligible veterans.

• USDA One-Time Close: 0% down, limited to eligible rural zones in Groveland outskirts.

• Local Credit Union Loans: Florida Credit Union and Space Coast CU offer up to 100% financing.

Loan Details:

• Interest rates typically range from 6.9% to 8.2% (2025).

• Interest-only payments during construction, then convert to fixed-rate.

• Construction period averages 9–12 months.

$300,000–$500,000

For mid-tier budgets, conventional loans become practical, offering more flexibility and standard home sizes common in Lake County.

Available Loan Programs:

• Conventional One-Time Close Loans: Typically 10%–20% down.

• FHA and VA Loans: Still viable if within loan limits.

• Local Lenders: MidFlorida CU, Seacoast Bank, TD Bank provide competitive local options.

Loan Details:

• Rates range approximately 7%–8% (2025).

• Fixed or adjustable-rate mortgages (ARMs) available.

• 12-month construction period common; longer terms possible.

$500,000–$1,000,000

High-budget homes often involve jumbo construction loans and higher down payments, catering to upscale properties.

Available Loan Programs:

• Conventional/Jumbo Loans: Usually require 20%–30% down.

• Specialist Portfolio Loans: From TD Bank, MidFlorida CU, private lenders.

• VA Loans: Possible with no down payment for eligible veterans, even at jumbo loan levels.

Loan Details:

• Rates typically from 7% to 9% (2025).

• Jumbo loans might have adjustable-rate structures during construction.

• Lenders may require contingency reserves (~10%) for cost overruns.

Zoning and Permitting Regulations for Alternative Homes in Clermont and Groveland

Tiny Homes (≤400 sq ft)

• Clermont: Not permitted as primary homes (minimum size is 1,000 sq ft); allowed potentially as ADUs.

• Groveland: Allowed as primary residences; no minimum size requirement since recent zoning updates.

Financing: Challenging but possible; specialized lenders or FHA loans may help.

Mobile/Manufactured Homes (HUD Standard)

• Clermont: Not allowed outside existing mobile home parks.

• Groveland: Generally prohibited for new installations; existing homes grandfathered.

Financing: FHA/VA programs available if zoning permits; limited availability due to zoning restrictions.

Prefabricated/Modular Homes

• Clermont and Groveland: Permitted as standard single-family homes.

• Must meet Florida Building Code and local architectural standards.

Financing: Widely accepted; FHA, VA, and conventional loans all suitable.

"Block" Homes (e.g., Boxabl Casita)

• Clermont: Not allowed as primary homes due to size (<1,000 sq ft); allowed as ADUs.

• Groveland: Allowed; city supports modular small homes.

Financing: Potentially financeable through niche or local lenders as modular homes.

3D-Printed Homes

• Both Cities: Allowed provided they meet Florida Building Code and local zoning standards.

• Clermont's minimum size requirement (1,000 sq ft) applies.

Financing: Eligible for conventional construction-to-perm loans; lenders increasingly familiar with the technology.

FAQs: Construction-to-Permanent Loans in Lake County, Florida

1. Can I include land purchase in my construction loan?
Yes, nearly all construction-to-permanent loans include both land and building costs in a single mortgage.

2. Are tiny homes financeable in Clermont?
Tiny homes (<400 sq ft) can't serve as primary residences in Clermont but may be financeable as accessory units.

3. Do Clermont and Groveland allow manufactured homes on private lots?
No, both cities restrict manufactured homes primarily to designated mobile home parks.

4. What is the typical down payment requirement for construction loans?
Down payments range from 0% (VA/USDA loans) to about 20%–30% for conventional and jumbo loans.

5. Are interest rates higher on construction-to-perm loans?
Slightly, due to increased lender risk. Typical construction-to-perm rates in 2025 range from 6.9%–9%.

6. Can I build a 3D-printed home with conventional financing?
Yes, lenders increasingly support 3D-printed homes as conventional site-built properties.

Key Takeaways for Homebuilders in Clermont and Groveland

When selecting a construction-to-permanent loan in Clermont or Groveland, carefully match your desired home type with local zoning regulations:

• Budget under $300k: FHA, VA, USDA loans ideal for affordable or modular homes.

• Budget $300k–$500k: Conventional financing or local credit unions offer the best flexibility.

• Budget $500k–$1M: Jumbo or portfolio loans required, typically with larger down payments.

Remember, tiny homes and manufactured homes face significant zoning restrictions in Clermont. Groveland offers more flexibility, particularly for innovative housing solutions like tiny homes, modular units, and 3D-printed homes.

Plan carefully, verify zoning and financing early, and soon you’ll be turning your vision into reality with the right construction-to-permanent loan in Lake County, Florida.

If you want to build a home in Clermont or Groveland, we would love to help you. Don't hesitate to reach out.