Construction lending is our specialty. Each year we provide financing for many homes in the Upper Cumberland area. To meet your construction financing needs, we currently offer two types of loans, short term construction-only loans and long term construction-permanent loans.
To apply for a construction loan, 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 including income verification, e.g., 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 or Angela 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.
Construction-only loans are set up on a short term loan 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.
This loan starts out just like the initial interest only loan. Interest is paid monthly based on the amount drawn. However, the loan automatically converts to a permanent mortgage after the initial construction period, without any new paperwork or expense. The permanent loan may be set up with terms up to thirty years. We currently offer both fixed and adjustable rate construction-permanent loans to meet all your financing needs. Call 931-484-6178 and talk to one of our loan specialists for further details.
Another added benefit 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.