Construction Loans

Dream it, design it, and then build your one-of-a-kind home.

Two loans in one

Save time and money with just one closing for construction funds and regular mortgage.

Competitive rates

You can lock in your long-term interest rate as soon as you start building.

Perk of owning your lot

You can use it as equity to secure your house construction loan in lieu of a cash down payment.

Our construction loans are single-close, which means you only pay closing costs once, and your construction loan converts to a regular mortgage, once building is complete.

You want something new and different - and uniquely yours. That's why you've decided to have your next home built from the ground up. A short-term Construction Loan covers costs from the foundation to the last roof shingle, and then conveniently convert to a regular mortgage once you move in.

  • Down payments as low as 10%
  • Save money with only one closing for both the construction loan and your mortgage
  • Lock in your interest rate as soon as you start building
  • Your construction loan automatically converts to a regular mortgage when construction is complete
  • Mortgage options are 5/1 or 10/1 adjustable-rate mortgages or 15-year fixed-rate mortgage1
  • If you already own your lot, use it as equity to secure your house construction loan in lieu of a cash down payment

How It Works

Draw Period

  • Lasts up to nine months.
  • Construction happens during this period.
  • As various construction milestones are met, Fox will conduct a property inspection to disburse funds, dependent on the construction that has been completed.
  • During this period, you’re only responsible for interest payments on your loan, which are based on the disbursed balance of your loan.

Construction-to-Permanent Loan

  • This period begins when construction is complete, and Fox has received final inspection documents and a certificate of occupancy.
  • This is when the construction loan transitions from interest-only payments to your selected mortgage.
  • Your payments will reflect the interest rate at the time of your closing.
  • If you prefer, you can choose to apply for a different fixed-rate mortgage.

Documentation/Approvals Required

  • Fox will need to review and approve your builder.
  • Your Fox loan officer will provide you with a complete list of required documents and will be happy to answer any questions you might have about the process.

Run the Numbers

General Disclosure: Annual Percentage Rate (APR). All rates, terms, and conditions may change without notice and published rates or an offer does not constitute a loan offer. Individual rates and terms may vary based on account relationship, loan amount, down payment, creditworthiness, loan-to-value, purpose of loan and property type. All loans are subject to approval and eligibility.

1

Interest only payments during the construction period (9-months); after, the loan will be amortized over 351 months (9-month construction period) into a 5/1 or 1/1 Adjustable-Rate Mortgage (ARM), or a 15-year fixed rate mortgage. ARMs are variable, and your APR may increase after the original fixed-rate period; for example, rates on 5/1 ARM are fixed for the first five years, and one year on 1/1 ARM subsequently subject to change annually. After the initial fixed period, the payment amount may increase or decrease every year as the interest rate adjusts based on the 1-Year Treasury Bill plus a margin of 2.75%. 5/1 ARM: The first-rate adjustment cap is +/- 2%; thereafter, annual rate cap of +/- 2%, and a lifetime rate adjustment cap +/- 5%. 1/1 ARM: The first-rate adjustment cap is +/- 2%; thereafter, annual rate cap of +/- 2%, and a lifetime rate adjustment cap +/- 6%. Actual rate and payment will vary based on your specific situation.

Estimated monthly payment based on a single family, owner occupied, 725+ credit score, construction price of $562,500, with 20% down, loan amount of $450,000 for 15-year fixed at rate of 5.875% and 5.930% APR after 9-month interest only payments, will have a monthly payment of $3,502.04. Monthly payment example quoted does not include taxes or insurance; the actual payment obligation will be greater. Contact one of our friendly Mortgage Loan Officers for additional details.

NMLS ID # 402968