Start Building With The Right Construction Loan
With a construction, lot or land loan, you have the options you need to turn your dream into the real thing.
- Build out that blueprint exactly the way you imagined – hello, perfect home
- Secure the corner lot that will turn into so much more
- Purchase your own piece of land for recreational purposes
For when you're building your home. You can start the process and make progress on your plans with:
- A typical down payment of just 10%
- A great, low rate
- Just one closing for both the construction loan and your post-construction mortgage
- Local service for the life of the loan
How they work
There are two components to a construction loan – the time during construction (also known as the draw period) and the time after construction (the permanent mortgage loan period). Here's how it all works.
- As work is completed, and when you agree a contractor should be paid, we'll release the funds to the title company to pay your contractor
- You're only responsible for interest payments on your loan at this time
- Your construction loan transitions into a permanent mortgage loan (your payments will reflect the interest rate at the time of your original loan application)
- It will automatically be a Summit adjustable-rate mortgage (ARM) loan, but if you prefer, you can opt to apply for a fixed-rate mortgage loan
Special documentation and approvals
To make sure that you qualify for a construction loan, in addition to the paperwork and documents required for a typical mortgage, Summit will need to review and approve your builder and also get the following:
- Project plans and specifications
- Construction contract
- Construction cost breakdown
For any other questions about the process, you can talk with a Summit Mortgage Loan Officer.