Let’s work together to put your home building plans in motion! At Countryside Bank, we understand Chicago area’s real estate and construction markets, and the nuances of first acquiring a specific piece of land and then building your home. With so many details involved as you put a plan in motion, it’s important to have people you trust in your corner. We offer three types of loans to meet your home building needs:
The Countryside Bank Single Close Loan is all about your convenience. Single Close means one application – start to finish. You sign one set of loan documents, this eliminates the need for multiple loans to get you into your new home. With a Single Close Loan, you can purchase the land for your home and begin construction. When construction is complete, the loan automatically converts to a permanent mortgage loan, saving considerable time and money. The construction period is up to 12 months to allow time to build your new home. Even if you are not ready to build, please talk to us about a Consumer Lot Acquisition Loan that can later be financed into a Single Close Loan.
Before you start the process, receive a pre-qualification for our preferred new construction lender. This way, you know what your maximum loan and lowest interest rate amount can be.
Choose from a pre-qualified list of possible sites for your home and find the perfect school district, commute to work, proximity to family and other important factors.
Work with our vetted professional builder and architect to create your plans and budget. Our builder's are already approved and have existing homes to show you during your design process.
We will order an appraisal once after you select your specifications and building plans from your developer and we receive the fully executed contract.
Once all the required documentation needed to complete the application is submitted, you will receive a decision within one week or we will pay you $2,500* At approval you will also lock in the interest rate on your permanent mortgage.
Once the acceptable appraisal is received and all closing requirements are met, your loan closing will usually take place within two weeks.** Your down payment or equity is required at time of closing.
If you currently own a home, you may not have to sell it before you build a new one. Close on a Single Close Loan and have up to 12 months to sell or lease your current home prior to loan modification.
Enjoy a construction phase of up to 12 months with interest only payments while you complete your new home. You will be charged interest only on the funds you use. Our preferred developer has averages only 6 months.
Once construction is complete you may move in. You pay interest only until your Certificate of Occupancy*** is issued and delivered to the bank, at the time your loan will convert to a traditional mortgage at the rate you locked.
Your decision is made locally at Countryside Bank, our employees and ownership live in the communities we serve.
You will only pay interest on the portion of the loan you are using for construction. After your home is built, this loan will convert into an amortizing mortgage at a rate you have already locked in.
A draw is when you withdraw money from you loan to pay toward construction costs.