Appliances are included in a construction loan when they’re itemized in the lender-approved budget and paid through a documented draw.
Appliances are a budget surprise waiting to happen on many builds. If you’re asking are appliances included in construction loan?, think in lender terms: the loan pays what’s on the approved budget, at a draw stage the lender can verify.
Below you’ll see which appliance types are usually easier to finance, what paperwork keeps a draw moving, and the steps that stop last-minute surprises at final inspection.
Are Appliances Included In Construction Loan? What Lenders Mean By Included
Construction lending runs on documentation. Your lender approves a total project budget, then releases money in stages. “Included” means the appliance cost is part of that approved budget, not a side shopping trip after the drywall goes up.
In most builds, the budget is a line-item sheet: site work, framing, plumbing, cabinets, finishes, and, sometimes, appliances. Each line item ties back to either a builder contract, a bid, or an allowance. When the appliance line exists and your draw request matches it, the lender has a clean reason to pay.
Many lenders also care about how the appliance relates to the home as installed property. Built-in items tend to feel more “part of the house.” Freestanding pieces can still be financed, yet lenders often want them clearly listed and tied to the home’s completion requirements.
The table below is a practical way to think about what usually gets funded and what proof lenders often want. Your lender’s checklist may differ, so treat it as a starting point for your own budget sheet.
| Appliance Or Line Item | More Likely To Be In The Loan When | What Draw Proof Often Looks Like |
|---|---|---|
| Dishwasher | Shown as a built-in install tied to cabinet plans | Builder invoice plus install note |
| Wall oven or cooktop | Listed in specs and tied to electrical rough-in | Supplier invoice matched to budget line |
| Range (freestanding) | Included in the finish package for occupancy | Receipt plus delivery ticket |
| Refrigerator | Budget line exists and size fits planned cabinetry | Invoice plus serial/model record |
| Microwave (built-in) | Integrated trim kit or cabinet mount is specified | Invoice plus installation confirmation |
| Washer and dryer | Included as part of a complete home package | Receipt plus proof of delivery |
| Vent hood or range hood | Required by design and venting is installed | Builder invoice tied to mechanical work |
| Delivery, haul-away, install parts | Separated as its own line item, not hidden | Retailer or builder invoice with detail |
| Allowance overage | Change order is approved before purchase | Signed change order plus updated budget |
Appliances Included In A Construction Loan With Draw Rules
Most lenders don’t hand you the full loan amount on day one. They release funds as work is completed, using a draw schedule. That’s why appliances can feel tricky: you pay a retailer up front, yet the lender may only pay once the item is delivered or installed.
At a high level, the draw path is steady. The builder completes work, a draw request is submitted, and the lender checks documentation and progress. The Consumer Financial Protection Bureau explains that construction loans are short-term loans for building or rehabilitation, with funds released as the project moves along. CFPB construction loan overview
Loan Type And Program Rules
Construction-only loans are short term and often strict about documentation. Construction-to-permanent loans can be more forgiving when the home must be complete before the loan converts into the long-term mortgage.
If you’re renovating, not building from the ground up, renovation-style financing may fit better. HUD’s FHA 203(k) consumer sheet lists “new appliances” among eligible improvements for many rehab projects. HUD FHA 203(k) consumer fact sheet
Budget And Appraisal Fit
The lender is lending against the finished property. If the appraiser’s “as-completed” value assumes a finished kitchen, appliances may be part of that picture. Still, the lender needs the appliance cost shown in the budget so they can release funds for it.
Allowances matter here. If your builder writes “appliances: $6,000” and you choose a $9,000 package, that extra $3,000 has to come from somewhere. Many lenders want a signed change order and an updated budget before they’ll pay the higher amount.
Builder Contract And Paper Trail
Lenders usually prefer paying through the builder, since it keeps lien risk and scheduling simpler. If you want the lender to pay a retailer directly, ask early. Some lenders allow it, others route all payments through the builder, and some require reimbursement after you show paid receipts.
Whichever route applies, the draw file usually needs a clear match: budget line, invoice, and proof that the item is delivered or installed at the right stage.
Common Reasons Appliances Get Left Out
When appliances don’t make it into the loan, it’s rarely personal. It’s usually a rules-and-paperwork issue. These are the patterns that show up again and again.
They’re Treated As Personal Property
Some lenders treat movable appliances like personal property, not part of the real estate. Built-ins are less likely to run into this. Freestanding items can still work, but they must be clearly tied to the home’s completion plan and listed in the budget.
The Builder Contract Excludes Them
Builders sometimes write contracts that exclude appliances so clients can shop on their own. If your contract says “owner supplied appliances,” the lender may also treat them as outside the financed scope unless you revise the budget and contract language.
The Draw Schedule Doesn’t Have A Slot
Appliances often land near the end of a build. If the draw schedule jumps from “cabinets installed” to “final completion,” there may not be a clean stage to pay for delivery and installation. A simple fix is adding a line like “appliance delivery and install” to the late-stage draw.
The Price Is Vague Or Not Verified
A single line that says “appliances” without a dollar amount, vendor, or allowance detail can stall approval. Lenders like clarity: model list, quote, or allowance that matches the planned level of finish.
Steps That Help Get Appliances Financed Cleanly
If you want appliances paid through the loan, treat them like any other construction item: plan them early, document them, and fit them into the draw flow. Here’s a practical sequence that works across many lenders.
- Pick who buys appliances. Builder-supplied, owner-supplied, or allowance. Put it in the contract and the budget.
- Write a short spec list. Sizes, fuel, vent needs, finish, and a model range. Add lead times so delivery fits the schedule.
- Ask how payment works. Builder pay, retailer pay, or reimbursement. Match it to your cash plan and lender paperwork.
- Budget the full install. Delivery, haul-away, cords, vent kits, water lines, trim kits, and install labor.
- Use change orders for upgrades. Update the allowance and budget before ordering so the draw doesn’t stall.
- Save proof of delivery and install. Quote, invoice, delivery ticket, install note, and photos if your lender asks.
If anything feels unclear, ask the lender for a written note on which appliance lines they’ll pay and at which draw stage. Save it with your budget.
Some people ask the question again near the end of the build: are appliances included in construction loan? By that point, the answer should already be settled on paper. If it isn’t, treat it as a budget change that needs approval, not a last-minute shopping decision.
Appliance Funding Checklist For Your Next Lender Call
Use this as a call script. It’s built to get clear answers fast and leave you with a checklist you can file with the budget documents.
Bring the budget sheet to every draw call, and mark appliance lines in a color so they don’t vanish.
| Question To Ask | What You Want To Hear | What You Should Provide |
|---|---|---|
| Can appliances be paid from the loan? | Yes, when itemized in the approved budget | Budget line item or allowance amount |
| Who gets paid? | Builder, retailer, or reimbursed to you | Vendor info and invoice format |
| When can the draw be requested? | At delivery, install, or final completion stage | Estimated delivery date and install plan |
| What proof is required? | Invoice plus delivery or install confirmation | Receipt, delivery ticket, install note |
| Are there limits on brands or prices? | Must fit the allowance or approved change order | Quote and any upgrade request |
| How are overruns handled? | Change order and updated budget before payment | Signed change order with totals |
| Is storage allowed before install? | Allowed with proof of secure storage and delivery | Delivery receipt and storage plan |
| What happens if the model changes? | Swap is fine if price stays within approved totals | Revised quote and approval note |
Final Checks That Prevent Late Surprises
Appliances can slow down a closing when they arrive late, don’t fit the cabinet cutouts, or trigger a budget overrun. These checks keep that from happening.
- Confirm sizes against cabinet and rough-in plans. Measure openings and check water, gas, and electrical locations before you order.
- Keep a single file for appliance documents. Save the quote, invoices, delivery tickets, and any change orders in one place so draw requests take minutes, not hours.
- Schedule delivery with the build timeline. Try to avoid delivery so early that items sit unprotected, and avoid delivery so late that final inspection can’t be completed.
- Plan a small buffer. If an allowance is tight, keep a cash buffer for taxes, installation parts, and small upgrades so you’re not forced into a rushed choice.
When the budget line, draw stage, and documentation match, appliances stop being a stress point. They become just another planned line item that gets paid, installed, and checked off as the house comes together.