Step 1: Compare Interim construction loan rates:
*APR = Annual Percentage Rate. APR is calculated based on a loan amount of $100,000. Loan rates quoted are based on A+ credit rating. Actual rates will vary and are based on individual creditworthiness. Please call to verify listed rates and fees.
Step 3: Get Prepared for Your construction Loan.
Determine If Your Property Is Eligible
To qualify for an interim construction loan, your new house must be an owner-occupied primary residence, and the property type must be a one-unit, single-family detached home. A full-time general contractor must be used for the construction of your home.
Gather Important Documentation
It is important to have the following documentation when applying for your loan:
- Plans and specifications from your builder
- The construction agreement with your builder that specifies the cost of your house including options and upgrades.
- A deed to the land you're building on.
Obtain builder's risk Insurance
Provide a copy of a standard 12-month pre-paid builder's risk policy. This protects you from financial responsibility for any damage, theft, or liability that may occur while your house is under construction. Most builders pay this and will include it in their bid.
Manage Construction Cost Overruns
It's not uncommon to want to make changes or upgrades to the original house plans when building a new home. If this occurs during the construction, you must pay any cost associated with these changes.
Convert Loan to a Permanent Mortgage
Once we receive the proper documentation confirming the construction period has ended for your house, we will convert your construction loan into the permanent mortgage you have chosen. Transferring your loan is easy. Plus, you'll enjoy no duplicate closing costs!
Download our free Home Building Guide
It breaks down the building process step by step! Inside you'll learn how to calculate what you can afford, work with a builder, get your construction loan, and more!