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 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 starting at 20%, 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).Construction

Key benefits:

  • 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
  • ConstructionLand 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 purchase, current mortgage payoff, labor, materials, and closing costs.
  • Do I need to have a down payment? Yes. Our refinance construction & renovation loans may be able to use the equity in your home as your down payment, but a purchase loan will always require a down payment.
  • What are the requirements for a construction loan? Construction loans require 20-25% down (this may be higher based on your scope of work), a list of project details, proof you are using a qualified builder on the project, a building permit is required prior to closing.
  • What are current construction loan rates? Contact one of our Residential Mortgage Loan Officers at 508.568.3266 or 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.


Let’s build your dream together. Get started on your Construction Loan today!