Construction to Residential
Construction and land financing for Hudson Valley builders and developers, with one closing, one appraisal, and an MHV mortgage ready for the buyer.
From the lot to the closing table.
Finance the land and construction in one closing by drawing funds as needed. One appraisal will cover both current and completed values. If you're ready to build, we're ready to finance your next project.
Meet Myers Run
Mike Lund brought MHV a 12-lot subdivision on Myers Corner Road. We financed the land and the builds, released each lot as it sold, and wrote the residential mortgage for six of the buyers ourselves. One lender knew the land, the builder, and the plans from the first advance to the last closing.
Built for people who build.
Building your own home to live in? That's a different loan, with built-in consumer protections. See Construction Loans under Home Lending.
Builders
Builders taking a lot they already own — or one we help them acquire — from subdivision through to a sold, financed home. Builders who need the land financed too, in counties where lots are still available and inventory is tight
Investors
Investors converting a tired two-family into a renovated rental, or adding units where zoning allows
Developers
Developers of small residential projects who need a lender that can also issue the letter of credit the planning board is asking for.
Owners
Owners tearing down and rebuilding a rental property.
How builder construction financing works
One closing, one appraisal
We finance the land purchase and the build together under a single closing, with one appraisal covering both as-is and as-completed value. Funds are drawn as you need them, against an approved budget, as work is completed and inspected.
Interest-only during construction
Pay interest only during construction, on funds drawn, not the full commitment. Draws are released against inspections, typically on a schedule tied to construction milestones: foundation, framing, mechanicals, and finish.
Clear loan amounts
Loan amount is based on the lower of total project cost or the as-completed appraised value, with the borrower's equity in the land and budget counting toward the requirement.
Streamlined underwriting
A fixed-price or well-documented contract, a realistic contingency, and a licensed, insured builder speed approval.
Pass savings directly to your future buyers
Lower your buyer's closing cost with no origination fee or appraisal, and a streamlined residential financing process with an MHV Residential Mortgage.
A perfect partnership
Because we already underwrote the land, the builder, and the plans, your buyer moves through pre-approval without the usual friction of new construction — and MHV holds the mortgage.
Your business lending experts
Bring the plans and the budget.
A commercial lender will review the project with you, explain what the loan could look like, and flag anything the planning board or appraiser will ask about.
Frequently Asked Questions
One. A single closing covers the land and the construction, with one appraisal for as-is and as-completed value. When the home sells, the construction loan is paid off at that closing, and the buyer's mortgage is a separate loan we're ready to write.
You submit a draw request as work is completed; an inspector confirms progress; funds are released to pay your contractor and suppliers. We build the schedule with you before closing so there are no surprises mid-project.
Interest only, on the amount drawn to date, not on the full commitment. The construction loan is paid off when the home sells.
Yes. Building to sell is the center of this program. When the home sells, we release the lot and the construction loan is paid off at closing.
Your buyer can finance with MHV and take a closing incentive on their residential mortgage, and MHV holds that mortgage locally. Because we underwrote the land, the plans, and the builder, their pre-approval and appraisal move faster than a cold file. If you have a first-time homebuyer, they may be able to take advantage of additional savings through MHV.
A signed contract with a detailed budget and schedule, proof of license and insurance, and references or a track record we can review.
All loans subject to credit approval, satisfactory as-completed appraisal, budget and contractor review, and membership eligibility. Rates, terms, and conditions subject to change without notice. Personal guarantee required. Draw disbursements subject to inspection. Builder's risk and, where applicable, flood insurance required. Borrower responsible for appraisal, inspection, title, and legal costs.