Building new? At City, you can find a smarter way to finance your dream home in today’s challenging market. With just one up-front closing, you can eliminate the cost of a second closing. And, with no private mortgage insurance, you can save even more each month.
Lock in your interest rate at closing – then, pay only interest on the loan during the construction phase. When your build is finished, the loan will convert to a 7-year, 5-year or 3-year adjustable-rate mortgage.
- One up-front closing
- Rate lock at initial closing
- Down payment as low as 20%
- Lot equity can serve as down payment
- Maximum loan amount based on the lesser of construction + lot costs or appraised value
- Interest-only payments during construction period
- 30-year amortization after initial construction period
- Construction loan fee of $2,500
Loan Requirements:
- Dwelling must be a single family, owner-occupied, detached home that will serve as the primary residence.
- Cash reserve requirements 15% – 30% based on contract specifications.
- Builder must be insured and licensed, if required by state.
- Construction must begin within 30 days of loan closing.
- Private well and septic inspections required.
- Termite soil treatment recommended but not required.
- Title insurance not required with satisfactory title certification.
- Funds when you need it. Sample draw schedule.
Prior to first draw, survey including new construction must be completed.
- 20% Foundation
- 20% Roof framed by paper
- 20% Rough ins (electrical, plumbing, HVAC)
- 20% Drywall install (with exterior vinyl/brick on)
- 20% Completion
