Construction Loan
Single Loan, Dual Purpose

If you’re planning to construct a home, our Construction Loan (also called the "Build Your Dream Loan") gives you an easier way to borrow money. With a single loan, you can cover both the construction and permanent phases of your project.

This means that you’ll have only one set of loan documents to sign, and you won’t have to worry about re-qualifying, reappraisals, additional closing costs, or signing additional loan documents. What’s more, you’ll have the security and peace of mind knowing that the interest rate you start with will be the same throughout your entire project.

Fixed and Adjustable Rate Mortgage (ARM) loans are available. For your convenience, we offer you an opportunity to reduce your Fixed or ARM Rate loan at the end of the construction phase.

Apply Online - Get information on our online mortgage and equity line application . If you're ready to apply, click here .

	Highlights Below > Benefits You’ll Receive > Fast Facts > How it Works > Helpful Construction Steps > Frequently Asked Questions

Benefits You’ll Receive

• Simplifies financing tasks by combining both construction and permanent financing into one loan
• Saves you money by eliminating the need to re-qualify for a new loan, extra appraisal, and closing costs
• Make payments only on the portions of the loan amount used, not on the total amount of the loan
• Choice of Fixed Rate or ARM
• No pre-payment penalties
• Free rate lock anytime during loan processing
• Online and Bank-by-Phone services — check your current balance, due date, etc.

	Fast Facts Fact Sheet
	During the Construction Phase You are billed for interest-only payments plus escrow impounds for taxes and insurance
	After Construction is Complete The loan automatically converts to the permanent loan chosen at the time of application
	Get Rates

How it Works
Most new homes take about 5-6 months to complete. If your home takes a longer or shorter time to build, we can adjust the term of the construction loan accordingly. Money is advanced for construction according to the levels of progress at certain points of time called “draws.”

During construction, you will be billed for interest-only payments based on the amount of loan funds that have been disbursed, plus escrow impounds for taxes and insurance. As construction progresses and more funds are disbursed, the amount of your billings will increase. American Savings Bank will send you a monthly bill notifying you of the interest and escrow payment due.

Upon completion of your home, the loan will automatically convert to the permanent mortgage loan selected at the time of application. All interest payments must be current before the payments for your permanent loan can begin.

Helpful Construction Steps
Click here for six helpful steps to building your dream home.

Frequently Asked Questions
Click here to find answers to commonly asked questions about Construction Loans.