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Construction Loans

Construction Loans

Can’t find your dream home? Let’s build it. Get started below to see if you qualify for construction loan financing.

I’m ready to build

Understanding the home loan construction

Here’s how our home loan process works

Step 1

Apply for your loan.

Step 2

Construction loan gets approved. Find your builder!

Step 3

The fun starts! Start building your dream home and move in.

Why Get a Construction Loan

A construction loan comes in handy when you can’t find your perfect home…it just hasn’t been built yet! We can help get your project off the ground. They cover the costs of building your own home which makes them different from traditional mortgage loans.

At The Federal Savings Bank, we pride ourselves on providing a variety of loans to solve our clients’ needs. With a construction loan from us, you can:

  • Build a new home with your preferred builder.
  • Build attached and unattached add-ons to your current property.
  • Renovate or update your current home.

Thinking of building a new home yourself? Contact us to find out your options.

Couple shaking hands with construction worker and loan officer

Ready to build?

Our Bankers can find the right financing for your new construction.

Get Started

Types of Construction

We support different types of construction, from Stick Built, used for traditional construction methods, renovations, and add-ons, to System Built, used for log, manufactured, and modular homes.

What is a construction loan and how does it work?

A construction loan is a short-term loan used to finance the building of a home. Funds are released in stages as construction progresses, and the loan typically converts to a permanent mortgage once the home is complete.

Interest rates vary based on your credit profile, loan amount and construction timeline. Contact us to get today’s personalized construction loan interest rates.

Yes, eligible veterans and active-duty service members can apply for a VA construction loan with no down payment and favorable terms.

A construction loan funds the building process and is typically interest-only during construction. A traditional mortgage starts after the home is complete and covers the full amount.

Yes, most construction loans require a down payment, often between 10%– 20%. The exact amount depends on the loan program and your qualifications.

Typically, 45–60 days. This includes underwriting, appraisal and coordinating with your builder and project schedule.

Yes, eligible borrowers can get pre-approved for a construction loan. Getting pre-approved helps you understand your budget, streamline the loan process and plan construction with confidence.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.

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Start building your new home, TODAY!

Reach out to our expert Construction Department if you’re ready.

Get Started Today