What Is a Construction Loan?
There are two types of construction loans available in the marketplace – construction loans and construction-permanent loans. Construction loans only finance the cost of building your new home; you would be expected to take out a home mortgage once the house is complete to pay for the new structure. Construction-permanent loans combine financing the build and permanent home financing into one easy loan, with one closing. Our mortgage team helps take the hassle out of the construction process by offering construction-permanent loans.
Taking out a construction loan gives you the flexibility to design a new home exactly how you like. Whether there is a specific roofing material you want or professionals have to excavate land prior to building, you can get funding to make your blueprints a reality.
Our experts work with customers in Ohio and Pennsylvania to provide construction loan programs. Tell us more about the location of your project, and we'll do our best to help you organize a loan that makes your building project possible.
What is Covered With a Construction Loan in Pennsylvania or Ohio?
A member of our mortgage team will speak to you about the details of your project. Every
construction assignment is different, but our construction loans in Pennsylvania and Ohio help you to cover a wide range of costs:
- Land
- Building permits and fees
- Building materials
- Labor costs from a contractor
- New construction closing costs
Understanding Construction Loans
- Homebuilding loans typically have interest-only payments while your home is under
construction. These payments then convert to a permanent loan with a fixed or adjustable rate depending on your needs. - When you sit down with our mortgage team, be sure to have a construction timetable, detailed plans and a budget for your home.
Additional Features
- If you already own your lot, the equity may be used as a part of your construction-permanent loan down payment.
- Financing may be available up to 95% loan-to-value, based on conventional loan amounts. Your loan-to-value is calculated by dividing the loan balance by the value of your property.
- Jumbo products are available.
- Construction disbursements (draws) are processed locally.
What Are the Requirements for Construction Loans?
We will work with you to determine your eligibility for Pennsylvania or Ohio
construction loans. Contacting one of our Mortgage Loan Originators is a great way to learn more about our process. Typically, we'll run your credit score and assess any personal debt before providing a loan. In most cases, a down payment is necessary to secure your construction loan.
Advantages of Construction Loans
There are numerous reasons our customers choose construction loans for small- and large-scale building projects. Review the information below to see why a construction loan in Pennsylvania or Ohio may be the right choice for you:
- Flexibility. Construction loans let you work according to your building timeline.
- Spread out payments. The only payments due during construction will be for covering
interest rates. - Save up while building. Your construction loan transitions to a mortgage-like loan after building.
- Transparency. Know exactly how much you can borrow to best plan your construction efforts.
- Customization possibilities. With our help, there is no need to settle for an existing home on the market.
Why Choose Us for Construction Loans?
Our team wants to improve your financial life and help you build your dream home in
Pennsylvania or Ohio. You can speak to us about construction loans and start looking for contractors to begin your assignment. With our competitive lending rates and outstanding customer service, there's no question why customers choose us for construction loan services.