Discover the Possibilities: Building Your Dream Home with a Construction Loan
Are you looking at building your own custom home? A construction loan from Farmers State Bank can help turn that thought into a reality.
What is a Construction Loan?
A construction loan is a short-term loan that covers only the costs of building a custom home or other real estate project. Unlike a traditional mortgage, which is used to purchase an existing home, a construction loan is specialized financing created for the specific purpose of financing a new home or project.
Why Choose a Construction Loan?
One advantage of a construction loan is that it provides buyers with the ability to build their dream homes while paying the building contractor directly. The loan is not paid in a lump sum but instead disbursed in installments as building milestones are achieved. This allows for greater financial control and ensures that the project stays on track.
Self-Build Construction Loan
If you plan to build a residential home and act as the general contractor, you can use a self-build construction loan. This is a specialty loan that gives you greater control over the building process. Our experienced team can guide you through the process and provide you with the financing you need.
Traditional Mortgage
Once the construction is complete, the borrower can apply for permanent financing. This enables you to transition from the construction phase to long-term financing.
Applying for a Construction Loan
Applying for a construction loan has never been easier with Farmers State Bank. Our streamlined application process allows you to apply for a mortgage any time of day or night. During the approval process, we will typically request that building plans, including building costs, be submitted. Based on the plans, our experienced staff can create a plan to determine how funds will be disbursed.
Get Started on Building
Building a home is an exciting but complex process. At Farmers State Bank, we provide specialized financing solutions to help make your dream a reality. To learn more about our construction loan options and how we can help bring your vision to life, please contact Garland Strunk, AVP and Mortgage Loan Officer, at 419-496-2651, or email him directly.