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Construction Loans

Home Construction Loans

We are pleased to offer a variety of Construction Permanent Loan programs, which enable our customers to finance the construction of a new home. Construction Permanent Loans offer the convenience of a one-time loan application, approval, processing documentation and loan closing covering both the Construction and the Permanent Mortgage Loan.

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The Construction Permanent Loan offers a construction draw period, which enables the lender to disburse loan funds during the course of construction based on the inspection of the property and on the percentage of completion of the home. Interest-only payments are required during the construction draw period. Upon completion of construction and receipt of final inspection and a certificate of occupancy, the loan transitions into a permanent mortgage loan. At that point, standard mortgage payments are based on the permanent loan interest rate and the loan term begins.

Members may apply and receive online approval for our Construction Permanent Loan programs. Special construction loan documentation is required. Contact a Landmark Mortgage Loan Officer near you to discuss building your new home and to determine the products and rates that match your needs.

Required Documentation

Construction Permanent Loans require additional loan documentation, underwriting and lender review. In addition to standard Credit Underwriting and Documentation, a lender will require documentation on the home to be built and the builder contracted to do the work.

Example of some of the documentation required follows:

Construction Loan Review Documentation

Survey or Plot Plan, Plans and Specifications, Material Specifications, Construction Contract, Construction Cost Breakdown, Building Permits, Septic/Sewer Perc, Utility Permits and Soil Test if required. Landmark's review and approval of construction loan exhibits is required.

Construction Builder Review Documentation

Resume, Articles of Incorporation, if applicable, Contractor's License, Copy of Liability Insurance, Copy of Workman's Compensation Insurance, financial statement, current inventory and tax return. Landmark's review and approval of builder is required.

Please contact our mortgage loan department for a construction loan checklist of required documentation.

Contact Loan Officer

Construction Loan Rates1

Term Rate APR Points Pmt2
1-Year ARM 2.500% 5.286% 0.00% $3.95
3-Year ARM 3.000% 4.281% 0.00% $4.21
5-Year ARM 3.125% 4.118% 0.00% $4.29

Lot Loan Rates3

Term Rate APR Points Pmt2
1-Year ARM 3.625% 4.005% 0.00% $4.56
3-Year ARM 3.875% 4.008% 0.00% $4.70

Actual payments will be higher with taxes and insurance. Rates and terms are subject to change; additional restrictions may apply. Published rate may be adjusted based on credit score and down payment. Private Mortgage Insurance (PMI) required for loans with less than 20% down. Consult a tax adviser regarding tax deductibility of interest and fees.

1 Down payment as low as 5%. Interest-only payments available during construction period (9-12 months); after, the loan will be amortized over 351 months (9 months construction period) or 348 months (12 months construction period). Rate adjustment could occur after the initial term (1, 3 or 5 years) and annually thereafter based on 1-year LIBOR rate; loan rate is calculated by adding a margin of 2.75%. Rate will not increase more than 2% in any given year and more than 6% total over the loan term. No conversion option. Published rate may be adjusted based on credit score and down payment. Application Fee of $600 is required. Available on single family, detached homes, owner-occupied upon completion. Other restrictions may apply; rates and terms are subject to change.

2 To calculate monthly payment for all Home Loans, multiply the payment amount shown by the mortgage amount in thousands. For example, a 30-year 3.500% loan for $150,000 would be: 150 x $4.49 = 673.50 per month. Actual payments will be higher with taxes and insurance. Rates and terms are subject to change; additional restriction may apply.

3 Down payment 20%. Application fee $495. If more than 10 acres, must be zoned residential.

Routing Number: 275079714
NCUA Equal Opportunity Housing
 
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