Home Construction Loans

Home Construction Loans

Consumers National Bank offers home construction loans with competitive fixed rates, interest-only payments during the build phase, and financing up to 95% of home value for owner-occupied single-family residences. One loan closes both the construction and permanent mortgage phases.

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How Construction Loans Work at Consumers National Bank 

Step 1: Apply - Submit your application online or in person at any Consumers National Bank branch. Your mortgage loan officer will guide you through income verification and credit review. 

Step 2: Appraise & Approve - CNB orders a property appraisal to determine the projected value of your completed home. Approval is based on credit, income, and the construction plan. 

Step 3: Break Ground - Following loan closing, construction funds are disbursed through a series of draws as work is completed and inspected throughout the construction process.

Step 4: Pay Interest Only -During construction, you make interest-only payments on funds advanced.  This reduces required payments during the period when your home is being built. 

Step 5: Convert to Mortgage - After construction ends, your loan automatically converts to a standard principal-and-interest mortgage, subject to the applicable loan terms.

Flexible Financing with Home Construction Loans

With our home construction loans, you can save time and money by closing only one loan and making interest - only payments up to 12 months during construction!

Construction Loan Special:*

For a limited time only: Save $500 off closing costs, plus a 0.125% rate reduction.

When you find the perfect lot for your dream home, then it’s time to build it — with a construction loan from Consumers National Bank. We offer competitive financing for residential construction loans with competitive interest rates and personalized local service. 

New Home Construction Loans

Loans for new construction are a little different than your typical mortgage. A construction loan helps you finance the building phase of your new house, and these loans are usually of a shorter term. Your contractor receives the funds necessary to build the home in installments, referred to as “draws,” from the bank as work is satisfactorily completed. And the final result? Your dream house, on your dream lot.

At Consumers, you can use your land purchase as part of your down payment and enjoy interest-only payments while your new home is being built.

Plus, our friendly mortgage loan originators are located right here in your community, too, so you don’t have to go far to find great customer service and fast loan processing.

Learn more about how Consumers National Bank can help you finance your new construction. Apply for Consumers’ home construction loans online or request more information from our team.

Consumers National Bank has served local communities since 1965. We are an FDIC-insured, community-chartered bank with local mortgage loan originators across our branch network. Our NMLS ID is 561314. All mortgage products are subject to credit approval and applicable regulations.

Home Construction Loan Requirements 

To qualify for a home construction loan at Consumers National Bank, applicants typically need: 

  • Property type: Owner-occupied, single-family residence (new construction only) 
  • Down payment: Your land purchase may be used as part of your down payment 
  • Loan-to-value: Finance up to 95% of home value (PMI required when equity is below 20%) 
  • Credit review: All loans are subject to credit approval and property appraisal 
  • Lending areas include: Ohio, Pennsylvania and West Virginia

Features

Our new construction loans offer incredible value and service. Check out these features

Financing up to 95% of home value (for owner-occupied homes)

Interest-only payments available during construction

Land being used toward the down payment

Single-close construction-to-permanent financing

 

 

*Construction Loan Special Details:

Must be owner-occupied

Occupancy: Owner-occupied, Single-Family Residence

Terms: Single-close transaction with a 12-month construction term. During construction, the borrower makes interest-only payments on funds advanced. After the construction term, the loan converts to permanent principal-and-interest financing with an amortization term ranging from 15 to 30 years. Private mortgage insurance (PMI) is required when equity is less than 20%.

Example: With a 5% down payment, a $375,000 loan at a 6.75% interest rate and a 6.802% annual percentage rate (APR), effective 09/18/2026, would require up to 12 monthly interest-only payments of $2,109.37 during construction, followed by 360 monthly principal-and-interest payments of $2,432.24. Payments do not include taxes, property insurance premiums, or PMI premiums.  Actual payments will be higher.

All mortgages are subject to credit approval and property appraisal. Interest rates, annual percentage rate, program terms, and conditions are subject to change without notice. Other restrictions may apply.

Laurie Corbit, mortgage loan originator helping clients access zero down payment home loans in Jackson-Belden.

Laurie Corbit

Mortgage Loan Originator

Jackson-Belden Office
NMLS: 1370603
Cell: (330) 495-6193
Fax: (855) 444-7077

Apply With Me

Daniel Eshler, Vice President and Mortgage Division Manager offering zero down payment home loans in Ohio.

Daniel Eshler

Vice President
Mortgage Division Manager

Jackson-Belden Office
NMLS: 426033
Cell: (330) 704-8993
Fax: (855) 444-7077

Apply With Me

Emily Jeromin

Emily Jeromin

Mortgage Loan Originator

NMLS: 1978919
Office: (234) 287-3238
Cell: (330) 771-2012
Fax: (855) 444-7077

Apply With Me

Robert Kelly, SE Region mortgage loan officer supporting zero down payment home loans from Calcutta office.

Robert Kelly

Mortgage Loan Officer
Sales Manager SE Region

Minerva Office
NMLS: 150023
Cell: (330) 383-1506
Fax: (855) 444-7077

Apply With Me

Rocky Page

Rocky Page

Mortgage Originator
Northeast Sales Manager

Salem Office
NMLS: 709731
Cell: (234) 338-1318
Fax: (855) 444-7077

Apply With Me

We offer the following mortgage loan options:

FHA/VA/USDA Loans

Community Difference Mortgage Loans

Bridge Loans

Conventional/Jumbo Loans

Fannie Mae/Freddie Mac Loans

Use our handy Mortgage Loan Calculator to estimate your payments.

Home Construction Loan FAQs

How Do Construction Loans Differ from a Regular Mortgage?

A construction loan funds the building phase of a new home in stages (called 'drafts') as work is completed, rather than issuing a lump sum. At Consumers National Bank, the construction loan converts automatically to a permanent mortgage once construction ends, so you only close once and avoid paying two sets of closing costs.

What is the Down Payment for a Construction Loan?

Consumers Bank finances up to 95% of the completed home's value for owner-occupied properties, meaning a down payment as low as 5% may apply. If you already own your lot, that land value can be used as part or all of your down payment. Private mortgage insurance (PMI) is required when equity is below 20%.

How Long Does a Construction Loan Last?

Consumers Bank construction loans include an interest-only period of up to 18 months during the build phase. Once construction is complete, the loan converts to a standard fixed-rate mortgage with repayment terms from 15 to 30 years. You make interest-only payments on advanced funds during construction, not on the full loan amount.

Ready to Finance Your New Home Build?

Consumers National Bank home construction loans are available to residents planning new single-family construction. Apply online today, or contact our team; they're in your community and know the local housing market.

Consumers Bank

Consumers Bank

Consumers Bank

Consumers Bank

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