At 1st National Bank, we understand that building your dream home is a different job from buying one. There’s a builder, a lot, and a timeline to line up, and a new construction mortgage has to keep pace with all three.
As your trusted community bank, we take pride in flexible terms and personalized service to help make your vision a reality.
A construction loan pays for a home in stages while it is being built. Construction loans are short-term by design, so the loan ends when the build does.
What comes next depends on the loan option you pick. A construction-to-permanent loan converts into your long-term mortgage. A construction-only loan gets refinanced into a permanent mortgage when the project is complete.
Financing a home that already exists works differently: one closing, one payment schedule, keys in hand. That gap sets construction financing apart from the other mortgage loan options on the shelf.
We offer a range of new construction mortgage solutions, including:
For those who prefer short-term financing, construction-only loans provide funds for the construction phase. You then have the option to refinance into a permanent mortgage when the project is complete.
Secure financing for the purchase of a lot, giving you the flexibility to build when you’re ready. Unlike the other three options here, a lot loan finances the land alone, not the construction that follows it.
For projects exceeding conventional loan limits, jumbo construction loans provide the financing your build calls for. Think of it as a jumbo mortgage sized for a home that is not standing yet.
When you partner with 1st National Bank for your new construction mortgage, you can expect:
If you are still choosing a builder, a conversation now can save rework later.
Construction loan requirements center on the plan, not just your finances. Lenders generally want a signed construction or purchase contract. They also ask for builder details, plans and specifications, and a cost breakdown before a construction loan moves ahead.
The usual income and asset paperwork applies too, and the loan documentation list covers what that means for a mortgage loan application. Getting pre-approved before you sign with a builder tells you what you are working with.
A construction-to-permanent loan handles both phases under one loan, so it converts into your long-term mortgage without a second closing. A construction-only loan covers the building phase alone. Once the project is complete, you refinance into a separate permanent mortgage, which means closing a second time.
Construction loans are short-term loans that fund a home while it is being built. A traditional mortgage funds a home that already exists, in full, at a single closing, and you pay it off over decades. Construction financing also involves plans, a builder, and a construction timeline.
A new construction mortgage covers the cost of building a new home. Depending on the loan option you pick, financing for the lot itself may be rolled in, or handled separately through a lot loan. A mortgage specialist can walk through what your own project would include.
Yes. A lot loan provides financing for the purchase of a lot, which gives you the flexibility to build when you’re ready. That suits buyers who have found the right piece of land but are not ready to break ground yet, and it keeps the two decisions separate.
With a construction-to-permanent loan, yes. That option allows you to lock in your interest rate at the beginning of the construction, so the rate is settled before the build gets underway. Rate details and current terms come from a mortgage specialist directly, not from this page.
Generally, yes. Lenders base a construction loan on the project itself, which means the builder, the construction plan, and the cost all matter. You can start the conversation before contracts are final, though. Many buyers get pre-approved first, then go shopping for a builder with a number in hand.
A home equity loan borrows against a home you already own, which suits renovations rather than building from the ground up. If you are improving your current place instead of building new, that route may fit better. Building on bare land calls for construction financing.
Yes. New construction mortgage options are available through 1st National Bank, a community bank. Markets served include Centerville, Lebanon, Liberty Township, Maineville, Mason, and Morrow in the Cincinnati and Dayton areas. A mortgage specialist can confirm which option fits your build. Start with a phone call or a visit.
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*1st National Bank NMLS# 807212. All loans subject to credit approval.
Ready to take the first step towards building your dream home? Talk with a mortgage specialist to work through the new construction mortgage process.