How does the approval process for a construction loan work?

The approval process considers your creditworthiness, the construction budget, contractor details, and the project's timeline. It's a comprehensive review to ensure alignment with your building plans.

Can I choose my contractor with a construction loan?

Yes, you can choose your contractor, but they must meet certain qualifications and be approved by the bank to ensure quality construction.

What happens if construction costs exceed the loan amount?

It's essential to work closely with your contractor to stay within budget. If costs do exceed the loan amount, you may need to cover the additional expenses out of pocket.

How are the disbursements made during construction?

Disbursements are made in stages, aligned with specific construction milestones. The bank will work with you and your contractor to ensure timely and appropriate fund releases.

Can I convert the construction loan into a fixed-rate mortgage?

Yes, once construction is complete, the loan can be easily converted into a fixed-rate or adjustable-rate conventional mortgage.

Can I use a construction loan for remodeling or expansion?

Construction loans are primarily for building new homes, but some options may be available for significant remodeling or expansion projects. It's best to discuss your specific needs with our loan experts.

Construction Loans

Build Your Colorado Dream Home Brick by Brick

In the scenic landscapes of Ouray, Ridgway, Silverton, Naturita, and Telluride, Citizens State Bank is more than just a financial institution. We are your neighbors, your partners, and your guides in the exciting journey of building a home from the ground up. With our tailored construction loans, we're here to turn your architectural dreams into tangible reality, all while upholding the community values we cherish.

Understanding Construction Loans with Citizens State Bank

Construction Loans vs. Regular Mortgage

Unlike a regular mortgage or home equity loan, a construction loan is designed specifically to finance the building of a new home. It's a short-term loan that covers the costs of construction, providing flexibility and support during the building process, and then can be converted into a conventional mortgage once the home is complete.

If you want to read more about our process read our Step-by-Step Guide to the Construction Loan Process in Colorado

Lay the Foundation with Citizens State Bank

Your dream home awaits, and the path to making it real begins in Ouray, Ridgway, Silverton, Naturita, or Telluride with Citizens State Bank. Let's break ground together! Contact us today or visit a local branch to explore how our construction loans can shape your future.

At Citizens State Bank, we proudly uphold our commitment as an Equal Housing Lender, ensuring fair and equitable lending opportunities for all.

Questions about Construction Loans? Talk to the experts.

Common questions about Construction Loans

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