Dream Home Construction Loans

Build Your Dream Home From the Ground Up

At Queenstown Bank, we offer a solution that allows you to build your Dream Home from the ground up - the Dream Home Construction-Peramanent Loan. These loans begin by covering the costs associated with the construction of your new home with disbursements delivered to match milestones of your home's construction progress. Once the construction is complete, your loan will convert to a permanent mortgage with scheduled monthly payments. These loans only require a one-time closing and your rate is locked in before construction begins. Learn more about the steps associated with Dream Home Construction-Permanent Loan by contacting our lenders or reviewing guide.
Meet Our Lenders Guide to Construction-Permanent Financing

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Advantages of Dream Home Construction-Permanent Loans

Streamlined Disbursement Process: Funds are released based on a pre-approved draw schedule, ensuring timely payments to your builder as work progresses.
Interest-Only Payments During Construction: Make lower monthly payments during the build phase, paying only the interest on disbursed funds.
Smooth Transition to Permanent Mortgage: Once construction is complete and permits are issued, the loan automatically converts to a standard mortgage with principal and interest payments.
Full Support from Loan Officers: Dedicated loan officers guide you through every step—from application to final conversion—ensuring a smooth experience.
Protection Against Liens: The bank requires lien releases from contractors before conversion, protecting you from future legal or financial issues.

Dream Home Construction-Permanent Loan FAQs

What is a construction-permanent loan?

It’s a single loan that covers both the cost of building your home and the long-term mortgage, with one closing and one approval process.

When do I start making payments?

Interest-only payments begin after the first disbursement during construction. Full principal and interest payments begin after the home is completed and the loan converts.

What happens during the construction phase?

Funds are disbursed in stages based on a draw schedule. Inspections are required before each disbursement to verify completed work.

Can I be my own builder?

No. Queenstown Bank requires a licensed builder and does not allow borrowers to act as their own contractor.

What documents are needed to apply?

You’ll need standard financial documents plus builder contracts, plans, permits, insurance, and a detailed construction budget.

What if there's a lien on the property?

No disbursements will be made if a lien is filed. All contractors must provide lien releases before the loan converts.