Construction Loan Programs
The purpose of a construction loan is to fund the costs associated with the construction or renovation of a building and to fund the interest on the loan during the construction period.
Upon completion of construction, permanent financing will be secured to retire the construction loan. Generally, any of our standard long term mortgages may be used to pay off the construction loan.
Construction Loan Basics:
- Loan-to-value: Up to 80%
- Construction term: generally 6-12 months
- Loan To Construction Cost: Up to 80%
- Interest-only payments during construction period
- Construction to perm with a one-time close available when requirements are met
- General Contractor or equivalent experience is typically required
- Construction draws are typically issued monthly after property inspection