Susan Meola

NMLS # 20816


Construction Loans

What are Construction Loans?

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
Couple signing for new home

Contact us at 508-853-3000 or to see if a Construction Loan is right for you!