Construction Loans

Highlights of our Construction Loans

• One-Time Closing
  • This gives you the ability to lock in your rate at application, and have peace of mind when your home is being built
• We will finance up to 90% of the "As Completed" value which will be determined by an appraisal.
• Typical construction loan will allow up to 12 months for the construction to be complete.
  • During this time, you will make interest-only payments based on the amount of funds we have provided.
  • At the end of the construction period, the loan will automatically convert into a Conventional Fixed or Adjustable Rate loan.
• Construction Loans are typically set up with 5-8 phases.  After each phase is complete, the appraiser will return to the property to confirm the phase is complete, then funds will be disbursed to the borrower/builder.

Requirements for a Construction Loan

• The borrower must have a licensed General Contractor overseeing the construction process.
  • The General Contractor will be required to provide his/her license and insurance, and will be required to work with the lender to complete all necessary paperwork.
• To complete a construction loan application and lock your rate, we will require the following from you and the builder:
  • Plans & Specs
  • Detailed Quote
  • Agreement signed by borrower and builder
  • License & Insurance for builder