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Home Builders

full house frame

You’ve got land? We’ve got a construction loan for you.

Are you already dreaming of the fun stuff that comes with that piece of land you saw – the kitchen counters, the bay windows, a cozy fireplace? With a Kennebunk Savings construction loan, you can roll the financing to purchase the land, construct a home and finance the permanent structure mortgage and keep looking ahead. Lock in a fixed interest rate even before you break ground, and enjoy interest-only payments during the initial phase of construction to easily manage expenses, like the costs of alternative housing while you build.

Here are a few of the benefits

  • Single loan closing at the beginning of construction can save you money and time
  • Finance up to 90% of the value of your primary residence
  • Gifted land can be used as equity
  • Interest-only payment options available for 6, 9, or 12 months
  • Principal payments begin after the interest-only phase

Construction FAQs


What do I need to start the loan process?

You will need a contract with a licensed builder, plans, specifications and budget. To make things a little easier, we’ve put together a checklist of financial documents you will need to prepare for the loan process. See our Mortgage Application Checklist.

How much of a down payment am I required to have?

We may accept a down payment as low as 10%, depending upon the size of the loan and your personal financial situation. It’s important to discuss the specifics of your project with a Residential Lending Officer to understand the options available to you.

What is the maximum loan amount?

The maximum loan amount depends on your personal financial situation and the scope of the construction project, which includes the plans, specs, and estimated cost of construction. In some instances, you can borrow up to 90% of the cost to construct your home or the final appraised value (whichever is less). Please keep in mind, borrowing anything over 80% of the cost to construct or the value of the home requires private mortgage insurance (PMI), which is an additional monthly expense. Remember, we are here to answer your questions and help guide you based on your specific project. Do not hesitate to call and talk with a construction lender.

Can the land I already own be used as a down payment?

If you own or have an existing mortgage on land for more than a year, we can consider the current appraised value toward your down payment. If you have owned the land less than a year, the value is based on acquisition costs, the actual cost of the land and the cost to construct or the appraised value whichever is less. The required down payment is determined based on that value.