Ready to build? Chelsea Groton makes land and construction loans simple
Thinking about building your dream home, buying land, or tackling a big renovation? At Chelsea Groton, we’re here to help you every step of the way. Our experienced construction mortgage lenders are ready to work with you at any stage of your construction process, whether you’re just starting out or already have plans in hand. We’ll work with your chosen builder or developer, or even allow qualified borrowers to act as their own general contractor. We’ve helped thousands of local homeowners and builders, and we’re ready to help you too.
Found the perfect lot? We’ve got land loans!
If you’ve spotted a lot you love but aren’t quite ready to design your home, don’t worry! We offer flexible land loans to help you secure your property now. We’ll finance a portion of the purchase price and can hold your interest rate for up to five years while you make your plans and design your home. When you’re ready to build, we’ll roll any remaining land loan balance into your new Construction to Permanent mortgage, without any extra hassle.
Ready to move on construction? Let’s go!
Here’s what you can expect:
- Up to 12 Months to Build: Take up to one year to build your new home, with your interest rate locked in from day one.
- Easy Transition: When your home is finished, your construction loan automatically turns into a permanent mortgage. No need to refinance, so you save time and additional closing costs.
- Funds Released in Stages: We generally disburse funds in five phases, each after your builder completes a stage and we’ve completed an inspection. You only pay interest on the part of the loan that has been drawn down or paid out.
- Already Own Land? If you have a land loan, our first disbursement at closing will pay off the land loan before construction starts.
What you need to know:
- Your new home must be your primary or second residence (owner-occupied).
- The land must be a legal, buildable lot as determined by local regulations.
- We’ll finance up to a certain percentage of the combined land and construction costs or the appraised value, whichever is less. The exact percentage is determined by your specific loan program.
- Choose between adjustable or fixed-rate loan options.
- You’ll pay for periodic progress inspections while building.
- Hazard and/or Builders Risk insurance is required during construction.
- Escrows are set up at the loan closing.
Construction Loan resources
Watch this video for a construction loan documentation guide.
Ready to get started or have questions? Reach out to Chelsea Groton’s construction lending team. We’re excited to help you build your future!
Residential Lending Team
