Construction loans are used to finance the construction of a new home, or to make substantial improvements to an existing home. Each loan is as unique as the property you're looking to construct.
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
Contact us at 508-853-3000 or firstname.lastname@example.org to see if a Construction Loan is right for you!