Salem’s new construction market is more active than its reputation suggests. D.R. Horton — the nation’s largest homebuilder — is the dominant production builder across multiple Salem communities, with active developments including Verona Heights, Tuscany Hills, Fairview Addition West, and East Park Village, delivering homes from the high $300,000s to the mid-$500,000s across a range of floor plans. Richmond American Homes operates in the Salem market with custom-selection production homes priced in the $450,000 to $600,000 range. LGI Homes provides entry-level production housing for first-time buyers. Banner Homes, a locally owned Salem builder established in 2014 by Steve and Buffi Hurley, develops communities in the rolling hills of South Salem, including buildable lots and finished homes with a focus on quality craftsmanship. And across West Salem and the rural Marion County fringe, custom builders work on private lots where the combination of site, design, and construction produces the kind of home that simply isn’t available in any production community.
The question of why to build rather than buy in Salem in 2026 has a straightforward answer in most price tiers: inventory at the move-up and upper-tier levels is genuinely limited. South Salem’s established neighborhoods — Fairmount Hill, the Bush Park corridor, Creekside Golf Course adjacency — rarely turn over, and when they do, well-positioned properties attract multiple offers and move quickly. Buyers who want specific features, specific locations, or specific price points that the existing inventory doesn’t produce have a clear incentive to build. The risk in that decision has historically been the two-loan construction approach — a construction loan that expires when the certificate of occupancy is issued, requiring a full re-qualification and second closing into an end loan. Our One-Time Close Construction Mortgage Loan eliminates that risk entirely: one qualification, one closing, one rate lock.
A One-Time Close Construction Mortgage Loan combines construction financing and permanent end-loan financing into a single transaction with a single closing. You qualify once, close once at the start of construction, and convert automatically to your permanent mortgage when construction is complete.
How the three phases work:
Construction Phase — Following closing, funds are disbursed to your builder in draws as verified construction milestones are reached. You pay interest only on amounts disbursed during this period.
Conversion — Upon issuance of the certificate of occupancy, your loan automatically converts to the permanent mortgage — no second application, no second appraisal, no re-qualification, no second set of closing costs.
Repayment Phase — You begin making standard principal and interest payments on your permanent mortgage.
Key Features:
Single closing — one set of closing costs, one qualification process
Rate locked at closing — protects you from market movement during construction
No re-qualification at conversion — your approval holds regardless of market changes
Draw schedule aligned with builder milestones — funds release as work is verified complete
Available for primary residence and, in select programs, second homes
Conventional, jumbo, and physician program variants available
For buyers building in Salem’s active production communities — D.R. Horton’s Verona Heights, Tuscany Hills, Fairview Addition West, and East Park Village; Richmond American Homes; LGI Homes — or on private lots within the Marion County conforming loan limit. Straightforward documentation, competitive terms, and a draw schedule we coordinate directly with your builder.
For buyers commissioning custom builds in South Salem’s upper-tier corridors, West Salem’s hillside view settings, or rural Marion County estate properties where land plus construction exceeds the conforming limit. Higher documentation standards apply; we structure the income and asset file specifically for your project.
For buyers working with local Salem builders — Banner Homes,
independent custom contractors, or design-build firms operating in the South and West Salem markets — on architect-directed primary residences. We work directly with the builder from the start to establish a draw schedule, verify Oregon CCB licensing, and ensure smooth milestone-to-disbursement flow throughout construction.
D.R. Horton — Verona Heights and Tuscany Hills (Southeast Salem)
D.R. Horton's Southeast Salem communities deliver production homes across a wide floor plan range, from single-level designs suited to downsizers and first-time buyers to two-story plans with formal dining, large primary suites, and bonus rooms. Prices in active D.R. Horton Salem communities run from the high $300,000s to the mid-$400,000s, making them highly accessible on conforming financing. The communities are well-located relative to Salem's southeast commercial corridor and the Salem-Keizer School District's South Salem attendance zone.
D.R. Horton — Fairview Addition West (North Salem)
Fairview Addition West is D.R. Horton's "front porch neighborhood" concept in North Salem, featuring tree-lined streets,
pedestrian-friendly sidewalks, a pocket park, and a planned
amphitheater. The community emphasizes connectivity and community-scale design over the conventional subdivision model. Homes include cottage-scale single-level designs suited for aging-in-place as well as larger two-story plans, with pricing from the high $300,000s to the mid-$400,000s.
Richmond American Homes — East Park Village (Salem)
Richmond American Homes' East Park Village delivers the Legacy Collection in Salem, featuring single-level floor plans like the Moreland WR25 — three bedrooms, two bathrooms, two-car garage — with open flow from entry through kitchen to outdoor living. Richmond American allows buyers to customize finishes and layout options beyond what production builders typically offer, positioning the community as a mid-tier option between pure production and full custom.
Banner Homes — South Salem Rolling Hills
Banner Homes, a locally owned Salem builder with a decade of mid-valley construction experience, develops communities in the rolling hills of South Salem adjacent to the city's southern limits. The company offers both finished homes and buildable lots, with a construction approach emphasizing quality craftsmanship, finished-home features, and walkable neighborhoods with sidewalks and greenspace. For buyers who want South Salem's established character combined with new construction quality, Banner Homes is a primary option.
West Salem and Rural Marion County Custom Builds
West Salem's hillside zones — across the Willamette River from downtown, with valley views and sunset exposures — offer private lot opportunities for custom builds not available in established Salem neighborhoods. Rural Marion County, from the Turner corridor south to Aumsville and east toward the Cascade foothills, provides acreage parcels for buyers who want larger sites, agricultural settings, or true privacy combined with custom residential construction. Our One-Time Close Construction program is fully available for these projects when paired with a licensed Oregon contractor.
One-Time Close expertise across conforming, jumbo, and physician program tiers
Established working relationships with D.R. Horton's Salem operations, Richmond American Homes, and local builders including Banner Homes
Draw schedule coordination — we manage the disbursement process throughout construction so your builder gets funded on time
Rate lock at close — protection through Salem's 9 to 15 month typical construction timeline
Custom build experience for West Salem hillside and South Salem rural lot projects
Construction-to-permanent physician programs for Salem Health physicians building rather than buying
Transparent process — draw schedule, conversion terms, and permanent payment all documented before the first shovel
Ryan Lehrman, NMLS #235295
Credit: Minimum 680 for conventional programs; 700–720 for jumbo construction tiers
Income: Fully documented — W-2, state employment, self-employment, and physician offer letters all considered by program tier
Down Payment: Typically 5%–10% for conforming; higher for jumbo; physician programs may allow lower down payments
Builder Requirements: Oregon CCB (Construction Contractors Board) license required; approved construction contract and verified draw schedule required before closing
Pre-qualification — Before you finalize a builder contract or make a lot purchase, we assess your income, assets, and construction budget to identify the right program and maximum loan amount.
Builder and contract review — We confirm your builder's Oregon CCB license, review the construction contract, and work with the builder to establish a draw schedule that matches the construction timeline.
Single closing — We close the loan before construction begins. Your rate is locked. Financing is secured.
Draw management — We process draw requests as your builder completes verified milestones, coordinating directly with the builder and inspection process throughout construction.
Automatic conversion — At certificate of occupancy, your loan converts to your permanent mortgage. No second application. No second closing.
A two-loan approach — separate construction loan, then permanent end loan — requires full re-qualification when construction is complete. If market rates have risen significantly during your build, you face those higher rates at re-qualification. If your income has changed or your financial profile has shifted, re-qualification may be more difficult. In Salem, where custom construction timelines run 9 to 15 months and market conditions can shift meaningfully in that window, rate lock protection through a One-Time Close is a material financial benefit.
Yes. Our One-Time Close Construction physician programs are available to attending physicians and, in select programs, to physicians with signed employment agreements from Salem Health or other qualifying employers. Salem physicians building custom homes in South Salem's hillside developments, West Salem's view corridors, or Banner Homes communities have used this structure to secure both the build financing and the permanent mortgage in a single transaction — with the no-PMI and student debt benefits of physician loan programs applied throughout.
Yes. D.R. Horton's Salem operations are fully familiar with One-Time Close financing and the draw schedule structure it requires. As the most active production builder in Salem's current market, D.R. Horton's project managers understand milestone-based disbursements and coordinate with lenders routinely. We work directly with D.R. Horton's sales and construction teams to align the draw schedule with actual build timelines in their Verona Heights, Tuscany Hills, and Fairview Addition West communities.
In many cases, yes. If you have not yet acquired the lot, we can structure the construction loan to cover both the lot purchase and the construction costs in a single transaction. This is especially useful for buyers pursuing private lots in West Salem, rural Marion County parcels, or infill lots in South Salem's established neighborhoods, where the lot and the construction are being negotiated simultaneously.
Building your new home in Salem 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.
Who we are
Our website address is: https://loansbylehrman.com/
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