Construction Loan | SouthStar Bank Building a house is an adventure. Whether you’re looking for the perfect lot, building a new home, or doing both, SouthStar Bank can help you get started. We offer: 1. Lot Loans Identifying the property is the first stage in building a new home. You can secure the site with a raw land or lot loan until you’re ready to build. These loans normally have periods of 12 months to 3 years, depending on how much time is needed before converting to a construction loan and are amortized over a 20-year period. The money you put down on the land is usually applied to the construction loan’s down payment. 2. Construction Loans Once you’ve confirmed your plans and budget with your builder, you are ready to convert to a construction loan. A construction loan is a short-term loan that ranges from 12 to 18 months in length, depending on the size and budget of the property you’re building. It will be rolled in with your construction loan if you have a loan on your land. The land down payment is applied to the construction loan and in some situations, lot appreciation may be used to reduce the required down payment. 3. Construction-to-Permanent Loans It’s a good idea to think about your long-term finance choices when planning to build your home. Before you start your build, work with a loan officer who will walk you through your options, whether a refinance after construction or a single “one-time-close” loan, so you know what to expect from your permanent mortgage. The fact that a one-time-close construction loan effortlessly turns to a long-term, permanent mortgage once construction is completed is perhaps the most significant advantage. As a result, this loan is the preferred option for many of our borrowers. SouthStar Bank specializes in financing for new home builds in Central Texas. With loans available from land purchase, to a seamless construction draw process, and finally permanent financing, your lender will be there to guide you every step of the way. Talk to one of our qualified loan officers today.