We offer a variety of Construction Loan programs, which enable borrowers to finance the construction of a new home. Construction Loans offer the convenience of a one time loan application, loan approval, processing documentation and loan closing covering both the Construction Loan and the Permanent Mortgage Loan. See our Learn Section for additional information on the variety of loan products offered.
The Construction Loan offers a Construction Draw Period, which enables the lender to disburse loan funds during the course of construction based on inspection of the property and on the percentage of completion of the home. Interest only payments are required during the construction draw period. Upon completion of construction and receipt of final inspection and a certificate of occupancy, the loan transitions into the permanent mortgage loan. At that point, standard mortgage payments based on the permanent loan interest rate and the loan term begins.
Borrowers may apply and receive on line approval for our construction permanent loan programs. Special Construction loan documentation is required. Please see our Home Loan Basics section for more information on Construction Loans.
10/1 ARM Construction/Perm
Best Choice If:- You need funds to finance the construction of a new home
- You don't plan on moving within the next couple of years
- You want an affordable way to qualify for a larger loan
| Advantages:- Save on closing costs with a single loan closing
- Payments are interest only on advanced funds during the construction phase (with a lower fixed rate than your regular mortgage)
- Fixed payment and interest rate for the first 10 years
- Will likely pay a lower interest rate over the first 10 years of your loan (vs. a fixed rate loan)
- And like every Summit mortgage, your fixed-rate loan will be serviced directly by Summit
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15/15 ARM Construction/Perm
Best Choice If:- You need funds to finance the construction of a new home
- You want an affordable way to qualify for a larger loan
| Advantages:- Save on closing costs with a single loan closing
- Payments are interest only on advanced funds during the construction phase (with a lower fixed rate than your regular mortgage)
- Fixed payment and interest rate for the first 15 years
- Will likely pay a lower interest rate over the first 15 years of your loan (vs. a fixed rate loan)
- And like every Summit mortgage, your fixed-rate loan will be serviced locally by Summit
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7/1 ARM Construction/Perm
Best Choice If:- You need funds to finance the construction of a new home
- You want the stability of a fixed lower interest rate and monthly payment for the first 7 years
- You want an affordable way to qualify for a larger loan
| Advantages:- Lower costs with a single loan closing
- Payments are interest only on advanced funds during the construction phase
- Fixed payment and interest rate for the first 7 years
- Will likely pay a lower interest rate over the first 7 years (vs. a fixed rate loan)
- And like every Summit mortgage, your loan will be serviced directly by Summit
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5/1 ARM Construction/Perm
Best Choice If:- You need funds to finance the construction of a new home
- You want the stability of a fixed lower interest rate and monthly payment for the first 5 years
- You want an affordable way to qualify for a larger loan
| Advantages:- Lower closing costs with a single loan closing
- Payments are interest only on advanced funds during the construction phase
- Fixed payment and interest rate for the first 5 years
- Will likely pay a lower interest rate over the first 5 years (vs. fixed rate loan)
- And like every Summit mortgage, your loan will be serviced directly by Summit
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3/1 ARM Construction/Perm
Best Choice If:- You need funds to finance the construction of a new home
- You want a loan with low interest rate
- You need short-term financing
- You want an affordable way to qualify for a larger loan
| Advantages:- Lower costs with a single loan closing
- Payments are interest only on advanced funds during the construction phase
- Fixed payment and interest rate for the first 3 years
- Will likely pay a lower interest rate over the first 3 years of your loan (vs. a fixed rate loan)
- And like every Summit mortgage, your loan will be serviced directly by Summit
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