North Arundel Savings Bank

Construction Loans

CONSTRUCTION-PERMANENT LOANS - RESIDENTIAL PROPERTY

  • One settlement
  • Maximum Term: Thirty (30) years
  • Maximum advance at time of settlement shall be 75% of land valuation
  • Interest charges on construction draws monthly during construction period
  • Convert to a permanent loan when construction is completed.

CONSTRUCTION LOANS – RESIDENTIAL PROPERTY

  • Term: Loans for speculation building shall be limited to two residential dwellings, for a term not exceeding twelve months.
  • Maximum advance at time of settlement shall be 75% of land valuation.
  • Interest on construction draws shall be paid monthly.

What you need to apply for a construction loan:

  • Completed and signed loan application, with account numbers furnished for all credit references.
  • Submit three (3) months statements on each bank account.
  • Copies of two most recent federal tax returns.
  • One set of plans, specifications and cost estimates for house to be built.
  • One copy of contract signed with builder, including cost estimates.
  • If acting as own general contractor, written estimates from sub-contractors must be furnished.
  • If lot is being purchased, one copy of contract of sale.
  • If lot is owned, deed reference. If owned, subject to mortgage, name and address of mortgage holder, and account number.
  • Credit report fee is collected at time of application.
  • Appraisal fees vary and will be required after credit approval.
  • Maximum advance at time of settlement is 75% of lot valuation from appraisal.
  • A copy of the building permit shall be furnished before settlement.
  • A location survey shall be furnished before the first construction draw is issued.

COMMERCIAL LOANS (Must be Secured by Real Estate)

  • Loan to Value Ratio: 85% of selling price or appraised value, whichever is less.
  • Maximum Term: Thirty (30) years
  • Payment: Monthly principal and interest plus monthly payment for taxes and other annual expense, where applicable.

UNIMPROVED LOT LOANS:

  • Loan to Value Ratio: 75%
  • Maximum Term: 15 years
  • Payment: Monthly principal and interest, plus monthly payment for taxes and other applicable annual expense.