A conceptual graphic of a house being constructed sitting on top of a set of blueprints.

Construction Loans


 
 
 
 
 

  

Building the home of your dreams

Your home is a reflection of your personal style and taste.  Construction loans allow you to build your perfect home.
 
Getting a construction loan
When you can’t find the right home to buy, you might consider building a home instead with a construction loan.  Construction loans work in a slightly different way than borrowing funds for a traditional mortgage.  The initial term on a construction loan generally lasts nine months or less, but could be increased based on your specific project. A Construction loan covers such costs as home construction, including land, contractor labor, building materials, permits and more.  With these loans, the contractor receives disbursements as work progresses.
 
 
The WSB difference
  • Up to 95% financing: Secure up to 95% financing (with Private Mortgage Insurance - PMI) for your new home's construction.  This offers significant financial support to make your dream home a reality without the burden of a substantial upfront investment.
  • Local approval: WSB gives you the local advantage with a hassle-free in-house approval process to help get your construction plans off the ground quickly, ensuring that your project moves forward without unnecessary delays.
  • Flexibility: WSB gives you the flexibility to choose your own contractor instead of having to choose from a pre-approved list.
  • Apply online: If coming to the bank doesn't fit your schedule, we have you covered.  WSB gives you the online tools you need to get things done when and where it works for you.  You can apply online, upload, and e-sign documents all through our Borrower Portal.
 
 
Have questions or need more information?  Stop by and see us or give us a call today!   (315) 836-8440
 
 
 

 

Construction Loan FAQs

We've covered some common questions you may have about construction loans.

There are benefits and drawbacks to construction loans. Construction loans tend to have higher closing costs than those associated with a mortgage. Plus, the funds provided by a construction loan are only released in stages as work on your home progresses rather than in a lump sum upfront. However, construction loans often only require interest payments while your home is being built, which can be easier on your budget. 

WSB will authorize the draw once it receives an inspection report for the work completed. You should inquire about any processes or documentation required to pull money from your construction loan so that you can pay the bills in a timely fashion as they come in. Understanding this process — and ensuring your contractor does, too — can help to avoid delays because of insufficient funds.

Feeling comfortable with your choice of contractor is important. Consider the following questions when interviewing builders for your project:
 
  • Does the builder have proven experience building the style and quality of home you want?
  • Do they meet insurance requirements?
  • Are they a reputable, local contractor?
  • Can they provide references from past clients, suppliers and local banks?


In general, it is not harder to qualify for a construction loan than for a traditional mortgage. We will look at qualifying you for the construction mortgage and for your hypothetical permanent financing.  A full review with new credit pulled will occur once the project is complete and you are ready to obtain your permanent financing. 

If you already own the land you plan to build on, that might make it easier to qualify for a construction loan. Any existing debt against the land will need to be satisfied as part of the first draw. However, the value of the land can be considered as part of your equity contribution.

In most cases, you only need to pay interest payments during the construction process. Once the build is complete, you’ll either have to start making monthly payments on the principal and interest (for a construction-to-permanent loan) or pay off the balance in one lump sum (in a construction-only loan).



 For a listing of fees associated with your mortgage, please see our Schedule of Fees
 
For more information or to speak with our personal lending staff, stop by our Lending Center, call us at (315) 836-8440, or email PersonalLendingGroup@wsbny.com. We're always happy to help you.   WSB Mortgage Loan Originators