Financing Home Construction Q. What’s the best way to finance building or renovating a home?

Explore programs specially geared to this need. Our Construction-to-Permanent home financing program can save you time and money. With one application and one closing, you establish a construction loan that easily converts to permanent home financing. Typically, custom-built home construction takes from 12 to 18 months. During this time, you will receive disbursements of funds to pay your builder for labor and material costs. Each month you will be required to pay only the accrued interest on the outstanding balance. Once the home is complete, the loan will convert to the permanent mortgage you selected during the application process. The construction period requires interest-only payments based on the prime rate as quoted in The Wall Street Journal, + .75%. Six-month extension permitted with interest rate margin increase and lender approval. “Interest-only” mortgages allow you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount ...  more