Construction Loans
Are you planning to build a home? We have construction experts available to guide you through the process, from the lot purchase to building and right through to the permanent mortgage. Please see below to find out more about how our home construction loans work.
Features and Benefits of our Construction Program
- One Closing: Once the construction loan closes, your construction period begins and there is no need to come back for a second closing.
- Local Decisions and Servicing: We work with a network of local attorneys, appraisers and other real estate professionals who know us and are easily accessible.
- Various Loan Options: Fixed rates, variable rates, Jumbo Loans, First Time Homebuyer, Medical Doctors Program, etc.
- A Full Year to Build: You and your builder have up to twelve months to build your home.
- Interest-Only Payments During Construction: Allows for easier payments throughout the construction phase based on the amount you have drawn.
- Satisfaction Guaranteed: If you are not happy with our loan process for any reason, we will reimburse you for your closing costs paid.
Construction Loan Process
- Work with your loan officer to find out what your construction project options are.
- During the 12 month construction period, you will only be required to pay interest on the amount that you’ve drawn to date for your project. This leaves more money in your pocket during construction.
- When your home is complete, you have the option of keeping your mortgage loan with us (no additional paperwork required), or we can explore refinancing into the secondary mortgage market.
Throughout this process, your loan officer will ensure that both you and your builder know exactly where your budget stands at all times.
Purchase Plus Improvement Program
Make the home of your dreams a reality. Features and benefits of our Purchase Plus Improvement (PPI) program:
- One Closing: Once the PPI loan closes, funds are placed in escrow to be disbursed throughout the project. At the completion of your project, you continue to make your loan payments just as you did during the project. There is no need to come back for a second closing.
- We consider future value: Renovations generally add value to a home. We allow you to tap into that future value by asking our appraiser to consider the improvements that will be made. A higher value could mean a higher loan amount, resulting in you keeping more of your savings.
- Projects of all sizes: Our PPI program will allow projects up to $60,000. If the complexity and budget go beyond that, don’t worry - we can set you up with a full blown construction loan.
- Local Monitoring:Depending upon the complexity of the project, we will either have the project monitored by someone within the bank, or our local construction consultant.
- Satisfaction Guaranteed:If you are not happy with our loan process for any reason, we will reimburse you for your closing costs paid.
Want to see how much loan is best for your budget? View our loan calculators to get a better idea of monthly loan payments and the loan amount that is right for you and your budget.
All loans are subject to credit approval.
The bank reserves the right to perform its due diligence assessment of the loan application and may modify the amount, or refrain from providing any financing, according to the results of its analysis. Generally, Saco & Biddeford Savings Institution provides lending services for properties located within our designated lending area. Please call one of our loan representatives for more information.
