Construction -

• We can finance you or your contractor during the construction of your new home.
• We simplify the process to let you concentrate on the choices you will make about your home without bogging you down on the financing.
• Have to sell your house first? Not always- contact First Security State Bank to find out your options.

We have specialized in new home construction loans for decades.

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Downloads

• Homeowner to Self Contract - Download
• Construction Information Checklist - Download

FAQ's - New Home Construction Loan

We have customized financing solutions to your home building project!

Q. Can I use my own down payment money first?
A. Your down payment money will be deposited into a construction account at the bank. It will be used for the initial construction expenses. It is less expensive to use your money than the bank loan funds, so if you have additional funds available during construction – such as from the sale of your home – they will be used for construction expenses and reduce your overall cost.

Q. What about buying items out of town – such as cabinets or light fixtures?
A. Invoices from out of town suppliers would be treated similar to any other construction draw request.

Q. Is my contractor acceptable to the bank?
A. You are responsible for picking the contractor you choose to work with. The bank may request you get references if the contractor is not familiar to you or the bank.

Q. Who takes care of getting lien waivers?
A. The bank gets lien waivers on every amount it pays out on your behalf.

Q. My “down payment” is tied up in my existing house – can I start to build without selling my existing house?
A. Frequently, the equity for the new construction house is going to come from the sale of your house. The bank has many programs available to allow qualified borrowers to start construction on their new house before their existing house is sold.

Q. I am buying the lot where I want to build – but the lot is not paid in full – can I start building now?
A. That is an excellent question! The bank reviews this on a case by case basis – considering your debt in relation to income, equity in the lot, and financial condition.

Q. The contractor cannot lay the sod because he says the weather is too hot! But I want to lock in my fixed rate loan. How can I do that?
A. Fixed rate loans can be locked in and closed if there are weather related delays in completing your new house. The cost to complete would be withheld from the contractor at 1 ½ times; i.e., cost to finish laying the sod in the front yard $1,250 x 1 ½ = $1,875. This amount would be withheld from the contractor until the work is completed.