Building or Renovating? We can help.
The Coop’s Construction loan offers the flexibility for you to build your dream home, renovate your current home, or upgrade your home with other major projects. Whether you’re turning your basement into livable space or adding a dormer to your upstairs, our loan experts know The Cape and have the expertise to ensure a smooth financing experience.
You take care of creating your dream home, we’ll take care of the mortgage.
How do construction loans work?
Construction loans are typically short-term loans designed to help you buy land and build your dream home, build on land you already own, or renovate your current home. Construction loans offer conventional and jumbo financing for primary and second homes. Down payments are from 5% to 30%, depending on the scope of your work. When construction is finished, the mortgage converts to a fully amortizing principal & interest loan. At the time of application, you can choose either a fixed-rate or adjustable rate (ARM).
- Fixed & Adjustable rate options available
- Competitive Interest Rates
- Local underwriting & decision making
- Available for the construction of your primary or secondary residence
- Jumbo Loan amounts available
- One-time closing fee
- Land purchase can be included in costs
- Interest only during the construction period (up to 12 months)
Construction Loan FAQs
- What does a construction loan cover? Projects can vary, but in general, construction loans cover land, fees, permits, labor, materials, and closing costs.
- Do I need to have a down payment? Yes. A down payment for a construction loan is required because the home is in development and it can’t be used as collateral. Our renovation loans may be able to use the equity in your home as your down payment.
- What are the requirements for a construction loan? Construction loans require a minimum of 5% down (this may be higher based on your scope of work), good credit, a list of project details, and proof you are using a qualified builder on the project.
- What are current construction loan rates? Contact one of our Residential Mortgage Loan Officers at 508.568.3266 or firstname.lastname@example.org for current construction loan rate information.
- What’s the difference between a mortgage and construction loan? The term “mortgage” applies to a loan on real estate. The primary difference in terms of lending is that the term “mortgage loan” most often is used in connection with an existing dwelling. A construction loan is made with the expectation that a dwelling will be built on a lot.