Construction Loans
We are pleased to offer a variety of programs to help you finance the construction of a new home.
An interim construction loan is a short term loan that provides financing while your home is being built. A construction-permanent loan provides long term financing after construction is complete.
A single-close construction loan covers funding while the home is being built and includes the long term financing after construction is complete all in one transaction.
During construction, we pay your contractors based on inspections of the property and the percentage of work completed. This is often referred to as the draw period. During the draw period, you make interest-only payments based on the paid out balance of your loan. When the construction of your home is complete, and we receive the final inspection and a certificate of occupancy, the loan transitions into the permanent mortgage loan. At that point, your payments are based on the permanent loan terms and interest rate.
You may apply and receive online approval for our construction loan programs. Special construction loan documentation is required.
Construction Permanent Loan Products
We are pleased to offer a 1 time close Construction Loan Product with a 12 month draw period.
Our 1 time Construction Loan offers you a 12 Month Construction Draw Period. During the Construction Draw Period, loan disbursements may be requested based on the completion of construction, an inspection, and the percentage of completion. During the Construction Draw Period, loan payments are interest only payments and are based on the disbursed balance of the loan.
Upon completion of the Construction, the loan transitions to become your Permanent Mortgage Loan. The Permanent Mortgage loan is based on your initial loan application and approval for a Permanent Mortgage Loan. At completion we will modify the mortgage and float the rate down to the going rate. you are always guaranteed the lowest rate!
Construction Permanent Documents
Construction Permanent Loans require additional loan documentation, underwriting and lender review. In addition to standard Credit Underwriting and Documentation, a lender will require documentation on the home to be built and the builder contracted to do the work.
An Example of some of the documentation required follows:
- Construction Loan Review Documentation
- Survey or Plot Plan, Plans and Specifications, Material Specifications, Construction Contract, Construction Cost Breakdown, Building Permits, Septic/Sewer Perc, Utility Permits, and Soils Test if required. Lender review and approval of construction loan exhibits is required.
- Construction Builder Review Documentation
- Resume, Articles of Incorporation, if applicable, Contractor's License, Copy of Liability Insurance, Copy of Workman's Compensation insurance, financial statement, current inventory, and tax return. Lender review and approval of builder is required.
Please contact our mortgage loan department for a construction loan checklist of required documentation 405-879-5654.
