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Construction Loans

We are proud to say………. “Construction lending is our specialty”.  Each year we provide financing for over 200 homes in the Upper Cumberland area.  To meet your construction financing needs, we currently offer two basic types of loans, short term construction-only loans and long term construction-permanent loans. 

We are one of the very few lenders who do not require a licensed contractor for the construction of your home.  However, we will need to gather information to be sure that the process and individuals you use for the construction process are capable of building the quality home you deserve.

In order to start the loan process, we need to know where you are building your home.  A copy of your deed helps us with that information.  Second, we need to know what you are building.  A copy of your house plans takes care of that.  Third, we need to know what it will cost.  With this information, we can determine your loan amount.  Last of all, we will need some basic personal and financial information about you when you are ready to apply for the loan, along with income verification, for example, a current pay stub.

There can be many details and questions to consider when building a home and getting a construction loan.  Feel free to call Lewis, Charlotte, Jack or Pam at 931-484-6178 to personally discuss any aspect of our construction loan programs.  We look forward to the opportunity to assist you in the exciting venture of building a new home.
 

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CONSTRUCTION INTEREST ONLY

Construction-only loans are set up on a 12-month term with no points and a very competitive rate.   During the term of the loan, you pay only the interest due each month based on the amount of funds drawn from the loan up to that point in time.  We will consider lending up to 80% of the appraised value of your land and proposed home together. 

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CONSTRUCTION / PERMANENT LOAN

This loan starts out just like the 12-month interest only loan.  Interest is paid monthly based on the amount drawn.  However, the loan automatically converts to a permanent mortgage after the 12-month construction period, without any new paperwork or expense.  The permanent loan may be up to a 30-year term and may be either an adjustable rate or a fixed rate loan.  The interest rate for the total term of the loan will be set at time of application, thus removing all the worries about market changes during construction of your loan. 

Another added bonus is that all payments will be made at the local offices of Highland Federal and the loan will not be sold to out of town investors. 

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