Construction Loans

All in One Loan

• Only one loan application required
• No re-approval required at completion
• Pay only one set of closing costs
• Second homes allowed
• Interest only payments during construction

Two Time Close Loan

• Conforming or Jumbo Loan
• Interest-only payments during construction
• Second homes allowed
• May be eligible to change loan amount upon construction completion

How Construction Loans Work

Pre-Construction Planning

• Our Mortgage Department develops your home project cost by including your land value; the executed construction contract; additional subcontracts; and any additional paid housing related to expenses. 
• Once your application is complete, and we have obtained plans, a cost breakdown, and verified builder approval, we will order an appraisal to value your home project. 
• The Processing/Underwriting Department will determine your eligibility based on current market guidelines. 

Construction

• Your builder request draws from our construction department. Draws will be dispersed upon builder request and approved by the borrower prior to release of the funds
• The Construction Department orders inspections for each phase of construction, and is provided written inspection reports on construction status.
• During construction you will be billed for interest only monthly payments on the funds advanced on your loan. you do not have to pay interest on the funds that have yet to be distributed.

Permanent Financing

• During the last phases of construction, your Mortgage Loan Officer will be in contact with you to begin preparing for permanent financing. 
• Within 60 days of construction completion, documentation may be required to complete permanent financing.

Program Overview

• We will finance max 80% of total project costs or the appraised value, whichever is less.
• Interest-only payments on funds advanced until your home is complete.
• Contingency for resources may be required. 
• Construction loan types may vary by product. One and two-time close construction loans available. 

Determining Costs

• We add the construction contract (House) + subcontracts (pool, landscaping, etc.) + land costs (lot value, engineering, survey, plans, etc.) to determine the total project cost.
• All paid costs will be credited toward minimum 20% down payment
• If you own the lot free and clear and it was purchased within the last 12 months, we use the lesser of the appraised value or the purchase price. 
• If you have owned the lot for more than 12 months, we use the full appraised value. 

Ready to build your Dream Home?