Personal Banking / Home Lending / Construction Loan
For your dream property.

Construction Loan

Work With a Local Bank for Your Construction Loan Needs

Your construction loan will be serviced by local mortgage experts and underwriters who understand the stress that comes with building your dream home. Your builder works with the title company responsible for handling construction payments and draws for a smooth and prompt payment process. We work with local appraisers for faster turnaround and an understanding of local markets.

 

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What does a construction loan cover?

Depending on your project, a construction loan may cover:

  • Land
  • Plans, permits, and fees
  • Labor and materials
  • Closing costs
  • Contingency reserves (if the project costs more than estimated)
  • Interest reserves (if you don't want to make interest payments during building)
Construction Loans

How does a construction loan work when you're building a new home?

As there is no collateral to back up a construction loan—like there is for a traditional mortgage—you should expect some additional obstacles before you are approved for a loan. Your architectural plans, your builder, and your finances will all be thoroughly inspected. You should also be aware that the disbursement of a construction loan is different from a traditional loan. Construction loans are paid out to the builder in installments—called "draws"—that correspond with important phases of the project, i.e. pouring the foundation, framing, and finishing work.

Remodeling

How does a construction loan work when you're remodeling?

If you're looking to remodel your house, but you aren't sure how to fund your dream house, a renovation construction loan may be the answer for you. With this loan, you can figure upgrade and repair costs into your permanent mortgage. The amount you can borrow will depend on the estimated value of your home after the repairs and upgrades have been made. Our lenders will need to approve your contractor and renovation plans first, and the money will also be paid out in installments. Unlike a personal loan or a home equity line of credit, construction loans generally have lower interest rates and longer repayment periods.