How to Get an Affordable Loan to Construct Your Dream House
You brainstorm. You sketch. You plan. You budget.
Then, the question comes to mind, “Can I afford it?” Our experts will walk you through the steps of how to get a construction loan and how to finance potential future remodeling plans.
The steps that go into taking your dream home from an idea on paper to its final product can seem endless and daunting, especially when it comes to the financials involved. That’s why First Bank makes the construction loan process as simple and smooth as possible.
How to Get a Construction Loan
Generally, a construction loan* is defined as a short-term loan that pays for the cost of building your home from scratch. The drawback to this is that once your home’s construction is finished, this kind of loan ends and requires you to get a new loan –an “end loan”— to pay it off. But, not with First Bank.
We offer a One-Time Close Construction-to-Permanent Loan that takes you all the way from point A to point B with one loan. It has two parts:
- The construction phase, during which payments of interest on the amount of the loan outstanding are made.
- The permanent phase, which begins after construction is completed and the loan becomes a permanent loan with monthly payments of principal and interest..
5 Benefits You Should Know About First Bank’s Construction Loan
No matter if you’re looking to finance building a primary residence or vacation home, our construction loan has you covered with financing for up to 12 months, followed by the option to convert it into a permanent loan.
- A wide variety of loan options.
- No prepayment penalties.
- Interest-only payments during the construction period.
- Fixed construction interest rate for all 12 months.
- Only one set of closing costs.
At First Bank, we understand it’s not just a financial investment. It’s also an emotional investment. Request a consultation with one of our loan officers to learn more about how we can get you started on making your vision a reality today.
*Loans subject to credit approval. First Bank is an Equal Housing Lender