Miami’s resale market in the neighborhoods buyers want most is constrained in ways that are not going to resolve. Coconut Grove’s bayfront streets have limited land and no appetite for density. Coral Gables enforces design standards and zoning that keep the character of its blocks intact while making quality teardown parcels genuinely scarce. Key Biscayne is an island with fixed geography. In these environments, the buyer who wants the right home — not just an available home — is frequently building it.
The build-versus-buy calculus in Miami tilts toward building for buyers in three distinct situations. The first is the buyer who acquires an older or smaller home on a desirable parcel — particularly in Coconut Grove, Coral Gables, or South Miami — demolishes it, and constructs an estate-scale custom home to their specifications. In Coconut Grove and Coral Gables, land on the right street carries more inherent value than the structure sitting on it, and the teardown-and-rebuild path is a well-established practice for buyers willing to manage an 18- to 30-month construction process. The second is the buyer who purchases a custom lot in a master-planned community with available homesites — a narrower opportunity in Miami than in suburban markets, but present in specific Coral Gables and West Miami-Dade communities. The third is the physician, executive, or relocating professional who is arriving from out of state with a clear vision of their Miami home and no desire to compromise on a resale property that meets only some of their criteria.
For all three, One-Time Close Construction financing consolidates the construction loan and the permanent mortgage into a single closing — eliminating the rate risk of a multi-year build cycle, removing the cost and complexity of a second closing, and locking the permanent terms before construction begins.
Ryan Lehrman, NMLS #235295, structures One-Time Close Construction financing for buyers building in Coral Gables, Coconut Grove, and Miami-Dade’s active residential construction market at all price points from the $900,000s to $10 million and beyond.
A One-Time Close Construction Mortgage Loan is a single-transaction financing structure that covers both the construction phase and the permanent mortgage in one closing, one set of documents, and one rate commitment.
Construction Draw Period: After closing, funds are released to the builder in scheduled draws as verified construction milestones are completed. During this phase, borrowers pay interest only on amounts disbursed, not on the full loan balance — which manages cash flow during a period when the buyer may also be paying rent or carrying an existing mortgage.
Conversion:When construction is complete and the local municipality issues the certificate of occupancy, the loan converts automatically to the permanent mortgage at the rate and terms established at the original closing. No second closing. No second appraisal. No refinancing fees. No rate uncertainty.
Permanent Mortgage: The loan becomes a standard amortizing mortgage — 30-year fixed, 15-year fixed, or an adjustable-rate structure selected at the original closing. Principal and interest payments begin on the converted balance.
Key Features of Miami One-Time Close Construction Loans:
Single closing, single set of fees, single rate lock before construction begins
Interest-only payments during the construction draw period
Loan amounts calibrated to Miami's construction cost reality — from $900,000 for residential teardowns in emerging neighborhoods to $10 million and above for estate-scale Coral Gables and Coconut Grove builds
Jumbo and Super-Jumbo One-Time Close programs for Miami's upper-tier market
Physician One-Time Close for healthcare professionals building in Miami-Dade
Flexible builder approval framework for Miami's established luxury custom builder community
For buyers constructing primary residences in Miami-Dade communities where the projected completed value falls within the conventional conforming limit — typically in inland or emerging neighborhoods in South Miami-Dade, Homestead, or West Miami where lot costs are lower and construction specifications are standard rather than luxury. This program serves buyers who are building a custom home but working within conventional financing parameters.
The appropriate program for virtually every meaningful custom-build or teardown project in Miami’s established residential markets. A teardown acquisition in Coconut Grove begins above $1 million for the land alone. A Coral Gables residential lot with city approval for a new custom home is typically $1.5 million to $3 million before a foundation is poured. New construction townhomes in Coconut Grove and adjacent neighborhoods — active in the $1.5 million to $3 million range — fall into the Jumbo One-Time Close tier. Any buyer building in Miami’s desirable neighborhoods with a completed value above $832,750 — which describes the overwhelming majority of custom construction projects in the city — needs Jumbo One-Time Close.
For estate-scale custom construction in Coral Gables and Coconut Grove, where completed values for new construction routinely begin at $6 million and extend to $15 million and above on waterfront parcels.
Teardown-and-rebuild projects on Coral Gables Waterway or bayfront Coconut Grove streets are Super-Jumbo construction transactions. These projects combine portfolio lending flexibility with a construction draw structure that may span 24 to 36 months for the most complex estate builds. Asset depletion and alternative income documentation programs are fully available within the Super-Jumbo One-Time Close framework.
Miami’s physician community includes buyers with a clear vision of their home who are unwilling to accept the compromises of limited resale inventory. A cardiologist joining Baptist Health, an orthopedic surgeon joining the Jackson Memorial faculty, or a neurologist establishing a practice in the Coral Gables corridor can use Physician One-Time Close to build their primary residence concurrently with beginning their Miami career. The physician program’s contract-based income verification, IBR student loan treatment, and no-PMI structure extend fully into the construction loan context — allowing a physician to begin building before their first paycheck, with a permanent rate locked from the day of closing.
Coconut Grove
Custom Builds and Boutique Developments — Coconut Grove is Miami's most active market for residential teardown-and-rebuild construction. Older ranch homes and post-WWII residences on large lots in the Grove's interior are regularly acquired and replaced with estate-scale custom homes priced at $3 million to $8 million. Boutique developer projects — including the Bayshore Park development where Meta Development broke ground following a $28.8 million loan close in 2025, and the new Coconut Grove townhouse developments adjacent to Grove Central (the Target and Sprouts-anchored mixed-use development) — represent the mid-tier vertical construction activity. Vita at Grove Isle, completed in 2025, established a new benchmark for boutique luxury residential development in the neighborhood.
Coral Gables — New Construction and Teardowns
Coral Gables enforces architectural review standards that ensure new construction maintains the character of the city's Mediterranean Revival heritage while allowing modern estate homes on appropriate parcels. New construction single-family homes begin near $6 million in established Gables neighborhoods, with Village Coral Gables — a boutique pre-construction luxury project delivering in 2025 — priced at $6 million to $8 million per residence. The Coral Gables custom builder community is well-established, with multiple firms that have decades of experience navigating the city's design approval process. Custom builds on waterfront parcels along the Gables Waterway command $10 million to $20 million in total project cost.
Edgewater and Wynwood — Pre-Construction Luxury Towers
Edgewater's luxury tower pipeline includes Villa Miami (completing 2026, $2 million to $3.5 million), Edge House, and additional projects approved through 2025 and 2026. Wynwood's NoMad Residences represent the arts-district boutique luxury tier ($1.3 million to $2.5 million). These pre-construction purchases are not One-Time Close Construction transactions — they are developer purchases where the financing is arranged close to completion — but they represent the urban vertical new construction tier that complements the single-family custom build market.
South Miami and Pinecrest — Custom Family Homes
The residential teardown market extends into South Miami and Pinecrest, where families acquiring older homes on large lots in top school districts build custom single-family residences in the $1.5 million to $4 million range. This is a Jumbo One-Time Close market driven primarily by families who prioritize school access and neighborhood character alongside home quality.
Palmetto Bay and Cutler Bay — Emerging Custom Build
Miami-Dade's southern corridor, where Palmetto Bay's average price per square foot rose from $313 to $456 between 2021 and 2025, is seeing increasing custom build activity as buyers who want newer construction in an established family neighborhood find fewer turnkey resale options at reasonable prices.
One-Time Close Construction programs for Miami-Dade's full custom build range — from South Miami family teardowns to Coral Gables estate projects
Jumbo and Super-Jumbo One-Time Close for Miami's luxury construction market
Physician One-Time Close for healthcare professionals building in Coral Gables, Coconut Grove, or adjacent communities
Rate locked before ground is broken — no exposure to rate movement during 18- to 36-month Miami estate build cycles
Experience with Miami-Dade's permitting timelines, builder relationships, and draw inspection processes
Ryan Lehrman, NMLS #235295
Property and Builder: The property must be a primary residence, second home, or investment property where the borrower owns or is acquiring the lot. Miami's custom builder market is well-developed, with licensed firms experienced in everything from South Miami teardowns to Coral Gables estate projects with architectural board approval requirements. Builder must meet lender licensing, insurance, and construction contract standards — a process Ryan's team navigates regularly with Miami-Dade's established builder community.
Income and Credit: Income documentation requirements align with the permanent mortgage program — standard documentation for W-2 borrowers, alternative documentation for self-employed and business owners, physician contract documentation for healthcare professionals. Credit minimums are consistent with the permanent program tier: 700+ for conventional and Jumbo programs, 720+ for Super-Jumbo.
Loan-to-Value and Down Payment: Calculated on the completed appraised value, not raw construction cost. Down payment requirements are consistent with the permanent program tier — 10% to 20% for Jumbo, 20% to 30% for Super-Jumbo, flexible minimums for physician programs.
Construction Timeline: Standard build terms are 12 months, with extensions available for complex projects. Miami's permitting process — particularly in Coral Gables, which has its own architectural review board, and in Coconut Grove, where tree protection and environmental review add steps — should be factored into timeline planning. Realistic project timelines are established before closing, not after.
Consultation and Feasibility — A detailed conversation about the lot or teardown parcel, the builder relationship, the projected construction timeline, and the permanent loan requirements. For Miami projects, understanding the permitting environment — particularly in Coral Gables and Coconut Grove — is part of the initial feasibility conversation.
Pre-Approval and Builder Review — Ryan issues a construction loan pre-approval based on your financial profile and confirms builder eligibility. This step precedes any construction contract execution or lot acquisition.
Plans, Specs, and Appraisal — A certified appraiser reviews the construction plans and specifications alongside comparable completed properties to establish the "subject to completion" value that forms the loan basis. In Coral Gables and Coconut Grove, the appraiser must be experienced in the specific neighborhood's comparable sale data.
Closing and Draw Schedule — One closing. One rate commitment. The draw schedule is established and construction begins. Ryan manages draw inspections and fund releases in coordination with the builder throughout the construction period.
Completion and Conversion — Certificate of occupancy issued by the relevant municipality triggers automatic conversion to the permanent mortgage. First regular monthly payment follows.
Because the resale inventory of homes that match what buyers want in these neighborhoods is thin, competitive, and often priced at a premium that reflects scarcity rather than condition or finish quality. Buyers who are willing to manage a 24-month construction process can frequently build a newer, better-specified home for the same or lower total cost than a comparable resale — and they end up with exactly what they wanted rather than the closest available compromise. The One-Time Close Construction loan makes the financing side of that process straightforward: one closing, one rate, one set of fees.
Yes. A physician with a signed employment contract can begin the construction financing process before their first day of work, using contract income for qualification. The construction draw period — during which only interest is paid on disbursed amounts — provides cash flow flexibility during a period when the physician is establishing their Miami practice and lifestyle. The permanent mortgage converts when construction is complete, at the rate locked at the original closing.
Miami-Dade's building permitting timelines vary by municipality. The City of Coral Gables has its own architectural review board and design approval process that adds steps beyond the standard building permit — buyers should budget 3 to 6 months for plan review and approval before a construction start date is realistic. Coconut Grove's tree protection regulations and environmental review requirements similarly add pre-construction lead time. The One-Time Close Construction loan's draw period begins after closing, and the construction term is established based on the realistic project timeline — accounting for permitting, not just build time.
Yes. VA One-Time Close Construction loans are available to eligible veterans and active-duty service members purchasing or building in Miami-Dade County. The VA program's signature benefit — zero down payment — extends into the construction context, making it one of the most powerful home-building programs available for qualifying buyers. Veterans building primary residences in Miami-Dade should confirm VA eligibility and entitlement at the start of the consultation process.
Building your new home in Miami starts here. Let’s talk through your builder, your site, and your timeline.
Originally from Harrisburg, Pennsylvania, I moved to Phoenix to attend Arizona State University and have proudly called Phoenix home ever since.
My journey into the mortgage industry began with a friend’s encouragement, who saw how my energy and people-first mindset could make a difference. He was right — I found my calling.
I’ve always embraced what makes me different. With ADHD as my secret weapon, I thrive in fast-paced, detail-heavy environments. I’ve built my career on clear communication, creative problem-solving, and putting clients first, always.
Outside of work, my greatest motivation is my wife and three amazing kids. I’d be honored to help guide you through your lending journey with care, clarity, and commitment.
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