What is a Home Construction Loan?
Personal construction loans offer short-term financing for the costs associated with building a new home. You can also use a home construction loan to make improvements or add an addition to an existing structure. Construction loan terms may vary depending on the project, but the average is one year. Once the work is completed, Peoples Bank will convert your construction loan into permanent financing. The benefit of a single close construction loan is that you avoid the hassle and cost of a second closing when it’s time to obtain permanent financing.
How do Construction Loans Work?
To apply for a construction loan, you’ll need to provide supporting documents such as a construction timetable, builders contract, detailed plans, and a budget. Our Mortgage Experts will help you through the application process.
Benefits of a Construction Loan
- Interest-only payments make it affordable to build your dream home.
- Competitive rates and flexible terms.
- Borrow only as much as you need.
- Interest accrues only on what you borrow.
Why Choose Peoples Bank for Home Construction Loans?
As a community bank, we are committed to providing fairly priced and up-to-date banking services. We tailor everything to meet your specific needs. At Peoples Bank, our mission is to exceed our customers’ expectations. To learn more about construction loans and our other personal financing options, give us a call or visit your nearest Peoples Bank location in Rock Valley, Lester, Sioux Center, Akron, Sheldon, Hawarden, Hinton, or Sioux City, IA, and Jasper, MN.