Mortgage Center

Start your online application today!   APPLY NOW

The whole story

Having your home built is a very exciting time. From initial floor plans, to deciding on the perfect bathroom tile, you’ll have the power to make your home truly your own. Our One-Time Construction Loan makes it easy by giving you the freedom to build your home without taking out two loans.

Once your home is complete, your loan will automatically convert to a conventional mortgage so you only need to close once.

Plus, you’ll only pay interest on the loan until construction is complete which saves you more money.

Go to main navigation

Apply for a Construction Loan today!

Getting started is easy! Our online application streamlines the process from start to finish. Submit documents and get updates on the status of your loan, all without leaving the comfort of your own home. Prefer to apply over the phone? Give us a call at 800-353-4449.

APPLY NOW

How to Afford a Fixer-Upper

Perhaps your dream home is more of a fixer-upper than a move-in-ready house. Maybe you'd rather start from scratch and design the layout to cater to your lifestyle. If you're hoping to customize your home to make it fit your needs, a regular mortgage may not cover all the building costs and upgrades you want. In cases like this, we recommend exploring construction loans before deciding on a mortgage.

 

What Is a Construction Loan?

As the name suggests, construction loans provide you with the funds necessary to build or renovate a home. It may cover costs for the land you're building on, materials, permits and labor. The loan could also allow you to get permanent appliances or develop landscaping.

How a construction mortgage loan works depends on which type of loan you need. There are a few variations, including:

  • Construction-only loans:These are active only while your home is under construction — usually a year or less. Full payment or getting a mortgage is required at the end of the building phase.
  • Construction-to-permanent loans: This option is a loan that starts as a construction loan, then turns into a regular mortgage once construction is complete. This flexibility can allow people who are building their own homes to avoid paying closing fees twice.
  • Renovation loans:If you're contributing to an already existing home rather than building a new one, a renovation loan is better.
  • Owner-builder construction loans:If you are a licensed builder or contractor, a lender may consider offering you an owner-builder loan. They can be construction-only or construction-to-permanent loans where the borrower is also the home builder.

 

How to Qualify for a Construction Loan

Like all loans, you must meet certain requirements to qualify for a construction loan:

  • A good credit score, usually above 680
  • Any existing debts should be in good standing
  • Enough income to pay off the loan in time and cover a down payment

Although not required, it may be helpful for you to come up with a plan to show your lender and construction company. Make it as detailed as possible, as presenting a good plan to your lender will show you're committed to the project and less likely to be a risk to them. An appraisal of the final product can also help.

 

Benefits of a Construction Loan

When you get approved for a construction loan, you'll appreciate:

  • Fund flexibility:Construction loan terms have much more flexibility than traditional loans. You can use them for various expenses related to the costs of building your home.
  • Interest-only payments: During construction, the only payments you have to think about are interest payments. You won't have to start paying the principal loan until construction is complete.
  • Building freedom:When you're shopping for a home, you'll likely have to make compromises in your wants, whether it's location, size or something else. Using a construction loan gives you the funds to create your home the way you want.

 

Go to main navigation

One-Time Close Construction - 30-Year Fixed-Rate (Other Terms Available)
Effective Date: May 16 2022
RateAPRPointsPayment
5.125% 5.241% 0.000 $816.73

Assumptions