Constructing a brand new home from scratch is a dream that many people hope to realize. However, before the dream can come to life, you need to find the right building contractor and you need to work out how to finance your new home construction. 

Consumers National Bank has helped many hopeful homeowners just like you build the home of their dreams, guiding them every step of the way, and providing that all-important flexible home construction financing they need to bring their projects to fruition. As you prepare to move one step closer to building the home you have always wanted, take the following advice into account from your Northeast Ohio home construction financing experts.

How To Pick A Builder For Your Home Construction

Your first step is to find an answer to the question: Who is going to build my house? You need to find a builder with an excellent reputation who also aligns with your vision and knows how to realize it. You will be working with your construction contractors for quite a while before the project is done, so it really pays to be careful and selective. 

Don’t jump at the first company that offers you a good price. Take the time to research different companies in the area, look at other houses they have built, and see if they match your aesthetic desires and philosophy. Arrange meetings with different companies, discuss what you have in mind, and see how they respond. 

Most importantly, remember that construction is a costly and time-consuming enterprise. It is crucial that you choose a builder that you will be comfortable with and whom you can trust to see the project through. Always go with a firm with a solid track record in the Northeast Ohio area.

Financing A New Home Construction in Northeast Ohio 

Now, let’s get to the main subject of this guide: How to finance home construction. Start by engaging with a lender that makes the process as transparent, supportive, and user-friendly as possible. At Consumers National Bank, we have developed a construction loan system that personalizes the financing process and makes new home construction a manageable and financially feasible undertaking.

First, we offer you a construction loan to cover the process from groundbreaking all the way to move-in day. We have developed a quick loan application with competitive rates. During the construction period - up to 18 months - you will only have to pay the interest on the loan. Once the loan is approved, you make monthly interest payments, deferring the payment of the capital until after construction is finished. You thus have more control over your finances and can enjoy peace of mind knowing that the build is fully financed, and you still have enough cash flow to take care of your other needs.

Then, once construction is complete, the loan seamlessly transitions into a mortgage, providing you with ongoing financing as a homeowner. This process is secured with a single closing, and the transition is automatic and convenient. 

Owner-Occupied Properties: Financing with You in Mind

Our home construction loan is intended primarily for owner-occupied properties. If you intend to occupy your new house as your primary residence, we are prepared to offer up to 95% of the property’s total value - including both the land and the building. Loan terms vary between 15 and 30 years, with a maximum loan amount of $647,200.

Why Choose Northeast Ohio?

Northeast Ohio is a great location to build your new home. It is a region rich in diversity, ranging from bustling cities to beautiful countryside. Whether you want an isolated country estate, a rural homestead, or a house in the suburbs, you will find the perfect spot to construct a home for you and your family.

Consumers National Bank is based in Northeast Ohio, and we are experts in the area’s property market. We have been serving Ohio homeowners since the 1960s, and would be delighted to help you with your dream of financing a custom-built home. If you have been planning that construction project in Northeast Ohio, and are wondering how to finance new home construction, contact us today.