State Savings Bank

Home Construction Loans

State Savings Bank offers several loan options for customers who want to build a new home, 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 by financing everything from start to finish.

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 or give us a call at one of the following numbers:  Baxter: 641-227-3161 or West Des Moines: 515-457-9533.

Home Blueprints

Lot Loan

If you’ve decided to purchase a lot but you’re not ready to begin home construction, a lot loan gives you flexibility. 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, but 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 as determined by a certified appraiser based on the house plans and specs you or your builder provide.
•Loan advances on the construction loan can be made up to twice a month.

Permanent Loan

Obtaining long-term mortgage financing on completion of construction is your final step. 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 us.

•Your construction loan interest rate can be locked in prior to completion of the home.
•Upon conclusion 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.

  • 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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