Construction Loans
Choose from three different loan programs to fit your construction financing needs.
Fixed-Rate
Our most popular construction loan.
This is a fixed-rate, full-term, single-closing program. The permanent rate is locked at the start of construction and the borrower pays interest only, no principal, during build-out. Apply, close, build and you're done. Requires sound credit history. Perfect for financing with an established builder.
2-Part
Traditional construction loan.
This program makes use of two separate loans…an interest-payment-only loan for construction, and a standard fixed rate mortgage for the long run. The borrower closes prior to construction and again after build-out and final appraisal.
Convertible 3/1 ARM
Our most flexible construction loan program.
As with most construction loans, the borrower pays no principal during construction. The borrower closes once, at the start of construction. This is a 3-year fixed rate that then shifts to a 1-year ARM (adjustable-rate mortgage). You will then have the option of staying with the ARM over time, or converting to a traditional fixed-rate mortgage. This is a popular choice during times of volatile rate fluctuations.
For more information, contact your local Northwestern office or call (231) 941-5626 or toll-free 1-866-915-6261, or e-mail to homebuilder@nwbank.com.