Construction & Lot Loans

Let's Build Your Dream Home

You’ve dreamed of your perfect home for years, down to every last detail. Now it’s time to build it. Make your vision come to life with a construction loan from State Bank of Cross Plains, tailored specifically for aspiring home-builders looking to turn their dreams to reality.

Our construction loans and draws are handled locally, and we offer monthly interest-only payments based on your construction loan balance. When your home is complete, the transition to permanent financing is simple.

We always strive to be as up front, transparent, and communicative as we can, to make sure you’re always informed and aware of how things are progressing. If you’ve found the perfect piece of land, we have the perfect lot loan to meet your needs. Give us a call today at (608) 405-6952 or find a local lender to learn how we can help.

Our Process

Though building a house may seem like a daunting prospect, things become infinitely more manageable with the benefit of an experienced, trusted partner as a guide. State Bank of Cross Plains is here to help things run as smoothly as possible on the financing side, so that you can concentrate on what really matters.

We assist throughout the different stages of the home-building process – before breaking ground, as construction begins, while the building progresses, and before move-in day. 

Before Breaking Ground

We help you through loan pre-qualification, offer you flexible financing options, order an appraisal using building plans and specs, set a loan closing date, and order title commitment and construction oversight with the title company.

Construction

We guide you through the construction loan draw process, provide you with a monthly statement for interest due on the disbursed funds, work with the title company to release funds to the builder, review and approve any change orders, and ask you and your builder to check in 30 days prior to project completion.

Before Move-In Day

We ask you and your builder to complete final inspection five days before the final loan disbursement; meet with you to refinance your construction loan into a mortgage; have you sign a new application, discuss terms, update income docs, and set a closing date for the new loan; and order appraisal recertification of value for the completed home.

FAQs

If you have additional questions, please reach out to a Mortgage Lender for assistance. 

Yes, we require our customers to hire a general contractor to facilitate the build of their home. 

There are 2 options.  If you are looking to build within the first year, we offer a 1 year balloon and the payments are interest only on the balance of the loan.  If you don’t plan to build in the first year, we offer a 3 year balloon, payments are principal and interest based on a 20 year amortization.

Yes, the Bank will order an appraisal and the fee for the appraisal is part of your closing costs.

 Lot loans require 20% down.

The Bank will order an appraisal using the plans, specs and building contract.

The Title Company is the customer’s choice.  Your builder may have a specific title company that they like to work with for the draws.

Draws are done through the title company that does the title insurance for the loan.

The customer is required to pay the difference at the time the draw is submitted for that item.

The loan is written for 12 months and when construction is complete converted to the end loan.

Monthly payments are interest only and are based on the amount that is drawn on the construction loan each month.

Yes, lot equity can be used and is determined on the value of the lot or the Purchase Price if purchased within the last year.

Banknotes & Resources