A loan designed to be dispersed in allotments ("draws") to cover home construction costs, financed at up to 80% loan to cost or 70% loan to value.

• After 20% of the construction is completed, a draw can be made
• The borrower only pays interest on the construction amount that is drawn each month
• Before each draw can be requested, an inspection and title update must be completed (see fees below)
• At each draw, 10% of the initial amount is retained for the conversion fees at the end of the construction loan.
• The construction loan can be converted to a permanent mortgage, once the construction is complete and the following items are provided to the bank:
  
  • Copy of Certificate of Occupancy
  • Last year’s property tax bill
  • Homeowner’s insurance policy with the premium’s invoice
  • Updated as built survey
  • Final inspection
  • Final title update

Application Procedure:

• Applications may be obtained at any FirstBank branches Location or simply download an application online.
• At time of application, the borrower will need to provide the following:
  
  • Signed construction loan statement
  • Copy of approved plans from Public Works
  • Copy of building permits (also CZM permits if applicable)
  • Proof of Builders Risk Insurance
  • Copy of your contractor’s license, the construction estimates including labor, materials, and the time frame to completion
  • Executed contract (signed by both builder and borrower)

Related Products:

• Real Estate Financing
• Commercial Mortgage
• Letters of Credit
• Insurance Premium Financing
• Commercial Insurance
• Merchant Services
• eFirstBank
• FACIL Services (Electronic Cash Management)

To receive information and advice about our loans and other banking products that can help you address your financial needs, visit any of our FirstBank branches or click here for a directory of our Commercial Banking contacts.