construction loans

Lake Ridge Bank orders an appraisal based on your building plans, specifications, and signed contract. The appraisal helps determine the overall loan amount and terms.

Yes. If you own the lot, its equity can be applied toward your down payment. The value is based on either a recent appraisal or the purchase price if the lot was bought within the past year.

Yes, Lake Ridge Bank requires you to work with a licensed general contractor to oversee and manage your home build.

Construction loans are short-term loans that cover the cost of building your home. The loan term is typically 12 months. During that time, you’ll make monthly interest-only payments based on the amount that’s been drawn. Once construction is complete, the loan converts to a long-term mortgage.

Funds are disbursed in stages—called draws—through the title company as construction progresses. Your builder will request these draws, and they’re typically tied to project milestones. If any part of the project exceeds the allowance listed in your contract, you’ll be responsible for covering the difference when that draw is submitted.