Start Building in 4 Simple Steps

1

Consider
Financing Options

There are two options to consider when financing your Construction Loan. We can guide you through the benefits of each to help you decide on the best option.

2

Calculate

Use our calculator to determine your monthly payment.

3

Get Prepared

There are a few ways you can get prepared. We’ll guide you through some considerations before you apply.

4

Apply

You can apply online or with a Construction Loan Expert. Online applications are quick and most documents can even be signed electronically at your convenience.

Step 1

Consider Your Financing Options

Option 1:

The first option consists of construction and permanent financing bundled into one loan. 

Option 2:

The second option allows members to make withdrawals for the construction phase throughout the first year of construction. Then the loan is seamlessly refinanced into a permanent mortgage.

Step 2

CALCULATE YOUR MONTHLY PAYMENT

The PMI rate will vary based on credit score, down payment and other criteria.

Step 3

Get Prepared

To help you get started on the path to building your new dream home, we've put together a few items you should consider to get prepared before applying.

Determine if Your Property is Eligible

To qualify for a construction loan, your new house must be an owner-occupied primary residence, and the property type must be a one-unit, single-family detached home. A full-time general contractor must be used for the construction of your home.

Determine the Type of House You’d Like to Build

Every house has a specific style, whether it’s a colonial, cape cod, contemporary or craftsman, it’s important to determine the type of house you’re interested in building. The style and size of the house will have a major impact on your budget. You can get ideas from builder websites for floor plans and pricing.

Select a Builder

Once you have thought about the type of house you want, you can create a list of potential builders. To find a reputable builder, you can check your local Home Builders Association by visiting nahb.org. Local real estate agents may also be able to help you in your search as well as recommendations from friends and relatives.

Estimated Construction Costs

There are many factors and steps to consider when estimating new home construction costs. The best way to estimate your costs is to talk with your builder. Once you have determined your floor plan, you can get a better idea of the overall costs. You should also leave room in your budget to accommodate any additional construction expenses, such as site preparation (clearing trees, removing large rocks), landscaping, and permit fees.

Employment History

Most lenders prefer to see two years of consistent employment in the same field. Lenders want to know that your income has been consistent and that it has the likelihood to continue in the near future. If you’ve been at your job for less than two years, you should still apply because we look at all of your individual employment factors during the approval process.

Credit Score

Your credit score is a mathematical assessment of the likelihood you will repay what you borrow. It is based on the information in your credit report, which tracks how well you pay and manage bills. Creditors typically check your score when deciding whether or not to approve your loan application. Scores range from 300 to 850, with a higher score being indicative of less risk.

Get Prepared: We recommend you check your credit report before applying for your Construction Loan by visiting www.annualcreditreport.com.

Bonus: Your membership includes complimentary access to Financial Counselors that can review your credit report and answer questions about credit scoring, building a strong credit history and correcting any inaccuracies that appear. To speak with a counselor, call toll-free 888.456.2227.

See What the Mid-Hudson Valley has to say About us

The staff is phenomenal. They are friendly and help you with anything. Management always says hello. The personalization of MHV is refreshing.

Anne Eriole

I got a construction loan & then mortgage with MHV and found the process worked perfectly. I was only asked to provide information once, and all schedules were met without issue. The construction loan process itself was the first time I had ever done this process and they worked with me to meet all the requirements, the funds disbursements process was never an issue & my contractors were satisfied with my ability to pay them.

Mark Goldstone

Frequently Asked Questions
 

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