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Construction Loans
Apply Now | Rates | Financial Calculators | Community Resources | Glossary of Mortgage TermsWhy is Bank of Ann Arbor the community choice for home construction financing? Because our Construction Support Team provides builders and buyers the service they need to make a dream home or remodeling project a reality. Apply online or call Carl Ent, Kim Clugston, or Kevin Salley to get started.
Construction Loan
A short-term, interim loan to pay construction costs as they occur. Bank of Ann Arbor makes payments to your builder at periodic intervals as the work progresses. A construction loan is usually followed by a permanent mortgage.
- For construction periods of up to 12 months
- Make interest-only payments on only amount drawn for completed work
- Rate is Prime + 1%
Permanent Loan
A long-term mortgage, taken out after the construction of your home is completed. This mortgage loan covers the costs incurred during the building process. Bank of Ann Arbor offers a permanent mortgages with loan terms ranging from 3 and 5 year Adjustable Rate Mortgages (ARMs) to a fixed interest rate that can be scheduled as long as 15, 30 or 40 years. Fixed rate programs can be locked as early as 180 days before completion of the construction.
Construction to Permanent Loan
Our Construction-to-Permanent Loan is a one-time close loan designed to finance the construction of a primary residence or second home and obtain permanent financing. One-time close means one loan-start to finish. You sign one set of loan documents to cover both the interim construction phase and the permanent loan phase. This eliminates the need for multiple loans, and duplicate fees to get into your new home. When the construction has been completed, the loan automatically converts to a permanent mortgage loan without another application or additional closing fees.
Contact our Construction Support Team to help make your vision a reality. Call (734)662-5533.
