After you decide on using a Construction Loan or the equity of your existing home to finance building your house, it is time to find a homebuilder. Contact your local chapter of the National Association of Home Builders to get recommendations, and ask your friends, family or known real estate agents who specialize in new home construction. When interviewing possible builders make sure they have experience in the type of residence that you want. Ask about their licensure and insurance, and make sure they’ve got a solid reputation within your community.

After construction is completed — when a certificate-of-occupancy is issued, and contractors have been fully paid — the borrower’s loan will usually roll over into a mortgage loan. Some lenders will combine these two loans into a single 30-year loan with one closing. This is called construction-to-permanent financing.

However, these types of loans pose a greater loan-to-value risk on the bank so borrowers should be prepared to put down higher down payments or more collateral. If you own the land already, you can use that as collateral.

Our construction loan program offers competitive fees and rates, as well as flexible draw schedules, to keep you and your builder or contractor moving efficiently throughout the process.

The down-payment will depend on numerous factors, so saying it will always be a minimum of 20% is untrue. Depending on the equity of the land, the location, your situation – it can all change the down-payment required.

There are several ways you can finance your new construction, no matter the situation. Whether it’s financed by the builder or the buyer, we’ll help you find the one perfect for you and your lifestyle.

If you own the land, the equity will act as all or part of your down-payment. If you do not own the land, it will be purchased with the first draw after the construction loan is closed.