Achieving your dream home begins before you break ground. If you are looking for a new construction loan in Michigan, consider Honor Bank! Construction and development loans play a major role in your construction project. We’re ready to answer your questions and provide guidance to help you save money and keep the loan process moving smoothly. Honor Bank has been assisting communities in North Michigan with construction mortgage loans for over 100 years. You can trust us to help make your dream custom home a reality! Call us today at 877.325.8031.
Our Construction Mortgage Program
- During the construction period you pay interest only on the funds that have been advanced.
- When your construction is complete, we convert your loan into permanent financing with a fixed- or adjustable-rate option.
- Financing is available for primary residences, second homes, investment properties, double-wide manufactured homes, and modular homes.
Our Process for Construction Financing in Michigan
- Meet with your Honor Bank mortgage loan originator for pre-qualification.
- You provide all required borrower, builder, and project documentation.
- Honor Bank provides loan disclosures.
- Builder and project accepted by Honor Bank.
- Honor Bank orders a home appraisal (for your plans).
- Underwriter reviews loan documentation and appraisal for approval.
- Documents are sent to title company for signing.
- You sign documents at title company and pay remaining costs, if applicable.
Once the Construction Period Begins
- 3-12 months, depending on the project and loan program
- Periodic draws during the construction period.
- When the home is 45-60 days away from completion, Honor Bank will obtain updated loan documentation.
- When the completion certificate is issued, Honor Bank orders the final appraisal inspection
- You sign the end-loan documents at the title company.
Then, settle into your new home!
Construction Mortgage Application Checklist
At the time of application, please provide the following information or documentation:
- Name, address, telephone, and fax number (if available) of the builder
- Signed contract between builder and borrower
- Sworn statement with all line items identified, signed and dated by the builder and borrower
- Copy of material specifications (specs) signed by builder and borrower
- Copy of builder’s General Contractor’s License
- Set of building plans – foundation plan, floor plan, and elevations (to be sent to appraiser)
This checklist is not intended to be all-inclusive. Some special projects may require additional documentation.
Looking to finance your lot as well? Honor Bank offers Lot & Land Loans.
Find Construction Financing in Northern Michigan
Honor Bank operates by the principles laid out in our Honor Code. We’re committed to doing everything in our power to provide our customers with excellent customer service. If you are searching for construction loans in Northern Michigan, Honor Bank is here for you. Stop by your local Honor Bank branch or begin the process online.