New Construction Loans

New construction loans are special, short-term loans that allow you to pay builders throughout the construction of your new home. Once construction is complete, you refinance the total sum of the new construction loan using a regular mortgage. As a result, you’ll have one monthly payment for your newly built home. The main benefits of new construction loans include:

  • Built-in equity when refinancing your construction loan to final terms
  • The line of credit you receive to pay for the home as it is built
  • Only getting charged interest on the amount you have borrowed


How much can I afford? 

Use our free home loan calculator to receive an estimate.


Your total monthly payment

Principal & Interest


What documents will I need?

During the new construction loan process, you’ll need to provide:

  • Current driver’s license or another form of photo identification
  • Purchase contract, if applicable
  • Most recent:
    • Two years of tax returns, including W-2s
    • Two months of bank statements with images of checks & deposits
    • Two months of pay stubs or payroll information with year-to-date totals
    • Retirement and/or investment statement

*Note, if you’re self-employed, more documentation may be required.


Tips when building a home 

  • Don’t take on more debt or loans without talking to your loan officer first because this can disqualify you from being able to close your home loan.
  • Don’t change jobs or careers while in the home loan process, unless you’re relocating to a new job with guaranteed employment.
  • Get documents to your loan officer in a timely manner because the loan process cannot move forward until we receive the required documents.
  • Don’t spend your down payment.
  • Make sure you’re able to document any large deposits to your accounts if other than payroll (gift money, tax returns, large cash deposits, etc.).
  • Ask questions, that’s what we’re here for!

For more information, check out our

Home Buyer’s Guide


We’ll help you make the move

Finance your home loan with us and use our moving truck for free!


Calculator Disclaimer

The information and analysis provided by calculators are for the purpose of estimating payments only, and are made available to you as self-help tools for your independent use. Calculators are not intended to provide lending advice and do not constitute an offer or application, nor do the calculators or calculations have legal effect on any contracts entered into by you.

The figures shown are theoretical and may not be applicable in all situations. Calculations include only principal and interest in amounts required to repay the loan. Your actual payment may be higher, as taxes, insurance, and other amounts may be added to the payment amount.

Farmers State Bank cannot and does not guarantee the calculators applicability or accuracy in regards to your individual circumstances. The calculators do not assure the availability of or your eligibility for any specific product offered by Farmers State Bank, nor do the calculators predict or guarantee the actual rate or exact payment amount.

The figures and formulae used within the calculators may change at any time without notice. All Interest rates are displayed as examples ONLY; repayment estimates as a result of these calculators have no legal effect.

Consult your Farmers State Bank lender to attain a quoted rate and term. Farmers State Bank accepts no responsibility for any losses arising from any use of or reliance upon any calculations or conclusions reached using the calculators. Farmers State Bank encourages you to seek personalized advice from qualified professionals regarding all personal finance issues.