Construction Loans

 

Building your home is a big investment—our Construction Loan gives you flexibility and control at every stage. With separate construction and permanent financing, you’ll have the opportunity to tailor each loan to fit your goals

Key Features:

•  Two separate closings for maximum flexibility
•  Interest-only payments during construction
•  Well-qualified applicants may borrow up to 90% of the home’s value
•  Potential to secure a lower rate for your long-term mortgage
•  Local lenders and in-house servicing for a smoother experience
•  Competitive fees and clear guidance at every stage

 

Stage 1: Construction Financing
Our construction loans are interest-only and draw-based, with a protected interest rate throughout the construction phase. As work is completed, draw requests are submitted by you or your contractor, and funds are released accordingly. We manage each draw, ensure proper lien protection, and inspect the property before issuing payments to provide a smooth and secure construction financing experience.

Stage 2: Permanent Financing
Once the final draw is requested, we finalize your permanent loan and lock in your interest rate. At this time, we request updated financial documents and order a final inspection appraisal to confirm the home’s value. Since design and material choices often evolve during construction, your loan will undergo this final underwriting review to ensure it aligns with the completed home. Once approved, we’ll schedule the second closing to transition your loan into permanent financing.

Benefits of a Two-Part Construction Closing:

  • Rate flexibility – Lock in your permanent loan rate closer to completion, helping you take advantage of market conditions.
  • Lower upfront costs – Closing costs are typically spread out rather than paid all at once.
  • Interest-only payments during construction – Only pay interest on funds borrowed to reduce expenses.
  • Built-in flexibility for changes – Design, material, or cost changes during construction can be addressed before final loan approval.
  • Clear separation of phases – Construction financing and permanent financing are handled independently for added clarity and control.
  • Final loan reflects the finished home – The end loan is based on the completed property’s value and final build details.
APPLY NOW

We have experienced mortgage lenders who will guide you through the construction loan process and answer all of your questions. We are just a phone call, email or in-person meeting away.

Latonia Schmitt
NMLS# 1052650
608-526-5524
latonias@bluffviewbank.com

 

 

 

 

 

 

 

 

*Annual Percentage Rate (APR) is 4.494% based on a loan amount of $300,000 with a 90% loan-to-value. Payments are interest-only for 9 months, estimated at $997.50 per month when fully advanced. This does not include taxes and/or insurance premiums, and if applicable, the actual payment obligation will be greater. Once the home is complete, you can convert the construction loan to either a conventional fixed or a 63-month balloon loan. All loans are subject to credit approval based on underwriting factors such as credit score, income history, property value, and others. Other rates and loan-to-value programs are available. Advertised rate accurate as of 11/3/2025 and is subject to change at any time without notice.