Building Your Dream Home

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Building new? At City, you can find a smarter way to finance your dream home in today's challenging market.  With just one up-front closing, you can eliminate the cost of a second closing. And, with no private mortgage insurance, you can save even more each month.

Lock in your interest rate at closing – then, pay only interest on the loan during the construction phase. When your build is finished, the loan will convert to a 7-year, 5-year or 3-year adjustable-rate mortgage.

City’s Construction/Perm loan features:

  • One up-front closing
  • Rate lock at initial closing
  • Down payment as low as 20%
    • Lot equity can serve as down payment
  • Maximum loan amount based on the lesser of construction + lot costs or appraised value
  • Interest-only payments during construction period
  • 1 year construction period, followed by up to a 30 year amortization period
  • Construction loan fee of $2,500

Loan Requirements

  • Dwelling must be a single family, owner-occupied, detached home that will serve as the primary residence.
  • Cash reserve requirements 15% - 30% based on contract specifications.
  • Builder must be insured and licensed, if required by state.
  • Construction must begin within 30 days of loan closing.
  • Private well and septic inspections required.
    • Termite soil treatment recommended but not required.
  • Title insurance not required with satisfactory title certification.

Funds when you need it. Sample draw schedule.

  • Prior to first draw, survey including new construction must be completed.
  • 20% Foundation
  • 20% Roof framed by paper
  • 20% Rough ins (electrical, plumbing, HVAC)
  • 20% Drywall install (with exterior vinyl/brick on)
  • 20% Completion

Your local, experienced City mortgage specialist can help you get started today. Let us call you or contact us to learn more about this and other mortgage products.