FOUR SIMPLE STEPS TO HELP YOU GET THERE.
STEP 1: COMPARE CONSTRUCTION LOAN RATES.
Rates effective as of 9:50 A.M. CT, January 7, 2020
Rates subject to change without notice.
What's the APR?
The interest rates, annual percentage rates (APRs), and discount points shown are subject to change without notice. Your APR will vary based on your final loan amount and finance charges.
During the construction period, you will be billed monthly for interest due based on the outstanding balance of your construction loan during the month. The monthly payment amount shown above is an estimate of your payment.
The monthly payment amount shown includes principal and interest. Taxes, property insurance, and flood and mortgage insurance (if applicable) are not included in the monthly payment amount. Your actual monthly payment amount may be higher. An escrow account may be required.
Rates quoted above include a Loan Origination Fee of 1%. If you prefer to not pay this fee, we do have other rates available for you to choose from. Please contact one of our Loan Advisors.
STEP 3: HOW TO GET PREPARED TO BUILD YOUR HOME.
DETERMINE IF YOUR CONSTRUCTION IS ELIGIBLE
To qualify for your construction loan, a full-time general contractor must be used for the construction of your home. And your new house must be an owner-occupied primary residence, and the property type must be a one-unit, single-family detached home.
GATHER IMPORTANT DOCUMENTATION
Please have the plans and specifications from your builder along with the construction agreement that specifies the cost of your house including options and upgrades. You will also need the deed to the land you're building on.
OBTAIN BUILDER'S RISK INSURANCE
Please provide a copy of a standard pre-paid builder's risk policy. This policy is typically paid by most builders pay and is included in their bid. The policy protects you from financial responsibility for any damage, theft, or liability that may occur while your house is under construction.
MANAGE CONSTRUCTION COST OVERRUNS
Once you start construction on your new house, it's not uncommon to want to make changes or upgrades to the original plans. However, you must pay any cost associated with any changes or upgrades during the construction.
CONVERT LOAN TO A PERMANENT MORTGAGE
We will convert your construction loan into the permanent mortgage you have chosen once we receive the documentation confirming the construction of your new house has been completed.
GET ANSWERS TO FREQUENTLY ASKED QUESTIONS ABOUT CONSTRUCTION LOANS.
Are payments required on an interim construction loan?
Yes, we require monthly “interest only” payments during the construction.
Can I get a fixed rate on a construction loan?
Yes, we offer fixed rates for 12 months.
Can I self-contract the construction myself?
No, a licensed contractor is required for all construction loans.
What is the minimum down payment for a construction loan?
A 20% down payment is required for construction loans. You may also use the equity from the land towards the down payment.
* APR = Annual Percentage Rate.