State Savings Bank

Home Construction Loans

State Savings Bank offers several loan options for customers who want to build a new home that are available both online and in person. From lot loans to construction loans, to permanent long-term financing, we can finance both the construction phase and your mortgage. Our loan experts guide you throughout the entire process and can save you time, money, and stress. Our experienced financial advisors can help guide you through the steps of financing everything from start to finish. We offer a variety of different types of construction loans to meet your specific needs!

Lot Loan

If you’ve decided to purchase a lot but you’re not ready to begin home construction, a lot loan could be your best option. This type of loan gives you more flexibility than some other types of home loans. Your loan repayment depends on your construction time schedule.

• If construction is set to begin within 12 months of the lot purchase, your payments will be interest-only.
• If construction is set to begin more than 12 months after the close of the lot purchase, your payments will be amortized allowing you to gain equity as you prepare for construction.

Construction Loan

If you’ve decided to purchase a lot and you are ready to begin construction immediately, a construction loan is typically our recommended option. You pay a loan origination fee, a down payment, and other applicable fees. Your loan repayment is interest-only based on the amount of money advanced.

• Your allowable construction loan amount is determined by the cost of construction and the home’s appraised value. Home value is determined by a certified appraiser based on the house plans and specs you and/or your builder provide.
• Loan advances on a construction loan can be made up to twice a month.

Permanent Loan

Obtaining long-term mortgage financing when construction is completed is the final step, transferring from a construction to a permanent loan. Because an origination fee has already been collected on your new construction loan, we charge no additional origination fee when you obtain long-term financing through State Savings Bank.
• Your construction loan interest rate can be locked in prior to the completion of your home.
• Upon completion of construction, a final appraisal determines the value of your completed home.
• You can move in as soon as the city issues an occupancy permit, regardless of whether your permanent loan has closed.

Loan Resources 

State Savings Bank offers a wide variety of loan options to help you achieve your goals. From personal loans to home construction and home improvement loans, we’ve got you covered! We also offer a range of financial resources from loan calculators to checking and savings bank accounts, and special tax-advantaged savings account available to qualifying First-time homebuyers. As a full-service Iowa bank, you can trust State Savings Banking with all of your banking needs!

Request Pricing

Our low home construction loan rates are highly competitive in our central Iowa market area, Polk County, Dallas County, Jasper county, and their neighboring counties. Please contact a State Savings Bank construction loan expert to schedule an appointment or discuss construction loan rates and other details; send an e-mail to info@ssb.bank or give us a call at one of the following numbers:  Baxter: 641-227-3161 or West Des Moines: 515-457-9533.

Home Blueprints

  • What is the loan structure of a construction loan?
  • How does a mortgage loan differ from a construction loan?
  • Can I be my own General Contactor (GC)?
  • How do construction draws work?
  • At what point can I lock in an interest rate on my end loan?
  • If I own my lot/land, does my equity count towards my construction loan down payment?
  • What are my monthly payments on a construction loan?
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