Construction Mortgage Loans
Experience expert lending from the ground up
You need a home that meets your needs, which is why you’ve decided to build a new home. Now, it’s time to build a mortgage that does the same. Learn how NBT Bank’s expert lenders can help you find the best loan type for your project. The good news is, you’ve got options!
Our Construction Loan Options
Construction End Loan
A permanent, long-term rate-locked loan with no payments required until after your home is built.
- Ideal for single-family primary or second homes
- Maximum loan amount: $1,500,000
- Minimum credit score: 680
- Up to 95% loan-to-value (LTV) for primary homes with mortgage insurance
- Up to 270-day rate locks at no additional cost
Land Loan Program
Finance the purchase of land for your future home with our flexible land loan options. These loans can also be used for property improvements before construction begins.
- Maximum 25-acre parcel
- Maximum LTV: 70%
- Minimum credit score: 700
- Maximum loan amount: $650,000
Construction Draw Loan
Make interest-only payments during the construction phase, then transition to full principal and interest payments after the draw period.
- Available for single-family primary or second homes
- Maximum LTV: 90% for primary homes (with mortgage insurance), 80% for second homes
- Minimum credit score: 680
- Maximum loan amount: $2,000,000
- Up to 15 months of interest-only payments
- Draw Loan Management with Built, our digital solution for construction loan management
The Draw Construction Loan Process
Make interest-only payments during the construction phase, then transition to full principal and interest payments after the draw period.
- Determine Your Available Cash – A minimum of 10% down payment or land equity is required. Additional funds for closing costs and cost overruns are recommended.
- Pre-Qualification & Application – Work with an NBT Loan Originator to determine eligibility, financing amount, and required documentation.
- Documentation Requirements – Provide proof of income, tax returns, bank statements, executed builder contracts, and home plans.
- Fund Disbursement & Inspections – Funds are released in stages as work is completed. Borrowers and contractors must sign off on disbursements via the Built system.
- Final Loan Transition – Upon the end of the construction phase, the loan will transition to both principal and interest payments.
Why Choose NBT Bank?
Experienced mortgage lending team
Competitive rates and flexible terms
Guidance through every stage of the home-building process
Start Your Home Construction Journey Today. Contact an NBT Mortgage Originator to discuss the best financing option for your project.
