Financing for Your Construction Project

Get the financing you need to build your dream home or vacation getaway.

Finance Your Dream Home: Construction and Lot Loans

Whether you're building from the ground up or buying a home that’s almost complete, a TowneBank Construction to Permanent loan can streamline your financing. Your local, knowledgeable TowneBank professional can show you your options and guide you every step of the way.

Construction Loan Details

  • Finance a primary or secondary residence  
  • Draw funds based on percentage of work completed
  • Interest-only repayment schedule available
  • Construction to Permanent loan gives you a one-closing option
  • Terms and Conditions to meet your needs
  • Flexible down payment requirements

Lot Loan Details  

  • Flexible payment plans for unimproved land purchases, including short-term interest only and long-term installment loans  
  • We generally finance up to 75% of purchase price or appraised value, whichever is less
  • Finance unimproved land only, or include current or future options for construction to permanent financing  
  • The borrower pays closing costs
A Construction to Permanent loan is a construction loan that converts into a permanent mortgage once building is completed. Your financing is rolled into a single transaction, so you’ll only have to complete one application and go through one closing process. After which, you’ll have a mortgage with TowneBank Mortgage.  
 
We pay construction draws to the builder or general contractor. The builder will request inspections thought the construction process and a TowneBank vetted inspector will check the progress of your build to ensure that the funds requested by the builder are correct and then will be approved by you prior to disbursement. Your builder will need the following insurance coverage in place:
  • Builder’s Risk & Hazard Insurance for Real Estate  
  • General Liability Coverage 
  • Personal Liability Coverage  
Your builder does not obtain Workers’ Compensation Insurance; however, they must state that they have vetted their subcontractors to be assured that they have Workers’ Comp. 

Your builder will also need to furnish a land survey or site plan prepared and certified by a licensed land surveyor for approval.

Insights & Perspectives

Towne NMLS# 512138
Normal Credit approval criteria apply.

Saving for a house?

TowneBank Mortgage can help you finance the house of your dreams. 
TowneBank Mortgage