Start your build on your time.
When you’re ready, explore a wide variety of construction loan options, including loans to new home, renovations, and more.
What is a Construction Loan?
With a construction loan, borrowers access the funds necessary to cover the costs of construction as the project evolves. This allows borrowers to pay interest only on the portion of the loan drawn instead of the entire loan amount while making sure that ample funds exists to complete the construction project.
Which projects are best suited for Construction Loans?
- New Home Construction* - helpful when working with a bibuilder who requires payment installments
- Home Renovations - useful for extensive renovations or biremodeling that requires significant funding
*New Home Construction and Renovations- Builders require progress payments as your project evolves. Construction loans allow you to borrow against the future value of the finished project AND allow you to fund the project as progress is made so that you have not advanced more than what work has been completed.
Construction Loan FAQs
What projects are not eligible for a construction loan?
Some projects that may not be eligible for a construction loan include luxury home construction, land purchases without immediate plans for construction, and speculative construction.
How do I know how much to borrow?
The amount you should borrow for a construction loan depends on several factors, including the cost of the project, your budget, and the amount of equity you have in the land.
How to apply for a construction to permanent loan?
To apply for a construction to permanent loan, you will need to provide documentation such as construction plans, proof of income, and a list of assets and liabilities. The application process typically involves a credit check and an appraisal of the property.
What documents do I need to apply?
Some of the documents you may need to provide when applying for a construction loan include your personal financial statements, tax returns, proof of income, a detailed list of assets and liabilities, and construction plans.
How much down payment do I need?
The down payment required for a construction loan varies depending on the lender and the project. In general, a down payment of 20% to 25% of the total project cost may be required. However, some lenders may offer programs with lower down payment options.
Ready to Take the Next Step in Your Construction Project?
Contact My Town Bank today to learn more about our construction loan services in Nashville. Our experienced team is dedicated to helping you navigate the loan process and achieve your construction goals. Let us help you turn your dream project into a reality. Get started now!
Construction Loan Services
Whatever your construction financing needs, My Town Bank can help you find the right solution at a competitive rate. Our service include:
New Home Construction Loans
If you're looking to build a brand new home from the ground up, our new home construction loans in Nashville can help you finance your project. With competitive rates and repayment terms of up to 12 months, we make it easy for you to pay off interest quicker and manage your payments during the construction phase. Our construction draws are applied in stages based on work completed, allowing you to pay your builder as you go.
Our renovation loans can provide the funding you need to make major improvements to an existing home, whether you're purchasing a fixer-upper or renovating your current property. We offer flexible repayment terms and competitive rates to help you achieve your renovation goals, whether you're looking to update your kitchen or add an addition to your home.
If you already own the land where you plan to build, our land/lot loans can help you finance the construction process. With competitive rates and repayment terms of up to 12 months, we make it easy for you to manage your payments during the construction phase. Our construction draws are applied in stages based on work completed, allowing you to pay your builder as you go.
Conventional Home Loans
For those who prefer a more traditional mortgage option, we offer conventional home loans that can be used for both new construction and home renovations. Our experienced loan officers in Tennessee can help guide you through the process, and our competitive rates and repayment terms make it easy to find a loan that fits your needs.
Our in-house loans provide flexible financing options that can be customized to fit your unique needs. Whether you're looking to build a new home or renovate an existing property, our experienced loan officers can help you find the loan that's right for you. With competitive rates and flexible repayment terms, we make it easy to achieve your construction goals.
Home Equity Lines of Credit can provide a source of funding for ongoing construction projects or home renovations. With our competitive rates and flexible repayment terms, we make it easy to access the funds you need to complete your project. Plus, with interest-only payments during the draw period, you'll have more flexibility in managing your finances.
Business Real Estate Loans
If you're looking to build or renovate a commercial property in Tennessee, our business real estate loans can help you get the financing you need. Our experienced loan officers can guide you through the process, and our competitive rates and repayment terms make it easy to find a loan that fits your business needs.
Our Construction Loan Process
Our streamlined construction loan process ensures a smooth and efficient journey from start to finish. Here’s an overview of how our construction loan process works:
We begin by scheduling an initial consultation to understand your specific needs and goals. Our experienced loan officers will guide you through the process, answering any questions you may have and providing expert advice tailored to your unique project.
Once we have a clear understanding of your project, we'll work with you to complete the pre-qualification process. This step involves gathering essential information such as your financial history, credit score, and project plans. Based on this information, we'll determine your loan eligibility and provide you with a clear understanding of your options.
With your pre-qualification in hand, we'll assist you in completing the loan application. Our team will guide you through the necessary paperwork, ensuring accuracy and efficiency. We understand that time is of the essence, so we strive to expedite this process while maintaining attention to detail.
Processing, Approval & Closing
Documentation and Approval
Once your loan application is submitted, our team will review the documentation and conduct a thorough assessment of your project. This includes evaluating your construction plans, cost estimates, and timelines. We aim to provide you with a timely loan approval decision, keeping you informed every step of the way.
Upon approval, we'll move forward with the loan closing process. This involves finalizing the loan terms, signing the necessary paperwork, and establishing a disbursement schedule to fund your construction project. Our team will ensure that you have a clear understanding of your obligations and that all legal requirements are met.
Construction, Inspections & Financing
With the loan funds in place, you can begin the exciting construction phase of your project. Throughout this process, our team will work closely with you and your chosen contractors to monitor progress, perform inspections, and ensure compliance with the agreed-upon plans and timelines.
Disbursement and Inspections
As construction milestones are achieved, we'll conduct inspections to verify completion and disburse funds accordingly. This process ensures that funds are released in a controlled manner, aligning with the progress of your project.
Conversion to Permanent Financing
Once your construction is complete, we offer seamless options for converting your construction loan into permanent financing. This allows for a smooth transition from the construction phase to long-term homeownership.
Senior Vice President, Nashville Office
Ken is Senior Vice President and lives here in Nashville. He is a graduate of Western Kentucky University with a degree in finance and a minor in military science. Ken is a former officer of the United States Army Reserve. Ken holds post graduate degrees in banking from both KBMI School of Bank Management, LSU Graduate School of Banking, and the ABA Stonier Graduate School of Banking. Ken has over thirty years of banking / lending experience with expertise in commercial real estate, residential real estate, construction lending as well as consumer lending.
Why Morgantown Bank and Trust?
Looking to build your dream home in Nashville, TN? At Morgantown Bank and Trust, we understand that constructing a new home or remodeling an existing one can be a stressful and complicated process. That's why we offer a wide range of services, including construction loans.