Borrowers are able to have homes built using one loan and one set of closing costs. The loan is taken our prior to construction and converts automatically to a permanent loan when the house is completed. Rates can be locked prior to construction for the entire term of the loan or the borrower may elect to float the rate during construction. Existing land may be used for the down payment or new land can be purchased using the loan proceeds.

During construction, the borrowers pay interest only on the amount of money drawn out of the account.  Once the property is complete, the principle and interest payments will begin.