Construction Loans: Build Your Dream Home

Local expertise for your custom building project

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Construction Loan Benefits & Features

We’re proud to be a community bank that processes construction loans locally with experts who know your area’s unique building landscape. Our single-closing process saves you time and money while our flexible schedules, competitive rates, and personalized guidance help your building project succeed.

Complete Construction Financing Solutions

  • One-time closing combines construction financing and permanent mortgage 
  • Interest-only payments during construction help manage your cash flow 
  • Local processing means quick responses keeping your project on schedule 
  • Flexible draw schedules aligned with your construction timeline 
  • Expert guidance from local lenders who understand your area’s requirements 

What Our Construction Loans Cover

  • Land purchase to secure your ideal location for building 
  • New custom homes from foundation to finish with complete financing 
  • Major renovations including kitchens, bathrooms, and whole-house remodels 
  • Home additions such as extra bedrooms or in-law apartments 
  • Outdoor spaces including decks, patios, and swimming pools 

Construction Loan Options for Every Need

We offer multiple construction loan solutions to match your specific project requirements. Compare our options to find the perfect financing solution for building or renovating your dream home.

Construction-to-Permanent Loan

Build your new home with one loan that converts to a permanent mortgage when construction is complete.

  • One-time closing saves money 
  • Interest-only payments during construction 
  • Choose fixed or adjustable rate for permanent phase 
  • Down payments typically 20-25% 
  • Available for primary and vacation homes 

Renovation Construction Loan

Transform your existing home with major upgrades, renovations, or additions using your home’s future value. 

  • Use equity in your home for down payment 
  • Finance renovations plus existing mortgage 
  • Lower down payment requirements (sometimes as low as 10%) 
  • Interest-only payments during renovation phase 
  • Perfect for historic home renovations 

Lot & Land Loan

Secure your perfect location now and build later with flexible financing designed specifically for land purchase.

  • Competitive rates for raw land acquisition 
  • Terms up to 20 years 
  • Can later use equity in land toward construction down payment 
  • Available for all buildable lots in our service area 
  • Local expertise in zoning and wetland regulations 

Construction Loan FAQs

Get answers to common questions about our construction loans, building process, and what to expect when financing your home building or renovation project.

We offer local processing with experts who understand your area’s unique building environment, ensuring faster approvals, personalized support, and smooth construction draws throughout your project.

Typically 20-25% for new construction loans, though renovation loans may use existing home equity for part or all of the down payment, depending on your project and financial situation.

During the construction phase (typically 9-12 months), you’ll make interest-only payments on the funds disbursed to date, not on the entire loan amount, helping manage your cash flow.

Your construction loan converts to your selected permanent mortgage (fixed or adjustable rate), with no additional closing required—saving you time and money on your home financing.

Funds are released through a series of draws based on construction milestones. Our local inspector verifies work completion before each disbursement, ensuring quality and protecting your investment.

Yes. We work with qualified builders and contractors. Your builder must be licensed, insured, and provide detailed plans and specifications before loan approval to protect your interests.

You’ll need financial documents (tax returns, bank statements), detailed building plans, a comprehensive cost breakdown, builder credentials, construction timeline, and property information.

Why Choose Cape & Coast for Construction

Our construction loans offer distinct advantages through our community banking approach. As your local bank since 1921, we bring unparalleled regional expertise to your building project.

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Local Decision-Making Advantage

Loan decisions made right here by people who understand your local building market, regulations, and challenges.
A home construction in progress
Regional Building Expertise

Our construction loan specialists have decades of combined experience with your area’s unique building requirements.
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Fast Local Draw Inspections

Quick turnaround on inspection requests and fund disbursements keeps your project moving forward smoothly.
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Start Your Building Journey Today

Ready to build or renovate your dream home? Contact our construction loan specialists today for personalized guidance, competitive rates, and the local expertise that makes the difference between stress and success.

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Construction Financing Experts

From building your custom home to renovating your current property, we offer flexible construction loans tailored to your needs. As your trusted local lender since 1921, we understand the unique building environment here, ensuring your project progresses smoothly from groundbreaking to completion.

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Our Clients’ Building Success Stories

Building on Cape Cod: Local Insights

Cape Cod’s unique environment presents specific considerations for construction projects. From coastal regulations to seasonal building cycles, our local expertise helps you navigate the complexities of building in this special region. Here are important factors to consider when building on Cape Cod.

Local insights list: 

  • Coastal Construction Regulations: Building near beaches, dunes, or wetlands requires special permits and considerations 
  • Seasonal Building Timeline: Most Cape Cod construction happens between April and November due to weather conditions 
  • Architectural Styles: From classic Cape Cod designs to contemporary coastal homes, we finance all architectural styles 
  • Local Building Codes: Cape Cod towns have specific building codes and restrictions that affect your project planning 
  • Wind Ratings & Insurance: Coastal properties often require enhanced wind ratings and specialized insurance coverage 
  • Site Preparation: Sandy soils and high water tables may require specialized foundation solutions 
  • Energy Efficiency: Cape Cod’s climate makes energy-efficient construction particularly valuable for year-round comfort