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Construction Loans

One Closing

With Kennebunk Savings, you can roll the financing for the purchase of the land, construction, and permanent structure into one easy transaction.

Our construction loan allows you to lock into a fixed interest rate even before you break ground! Plus, we offer interest-only payments during the initial phase of construction which can help you manage the costs of alternative housing.


See 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

Talk to Us About a Construction Loan


Construction FAQs

You will need a contract with a licensed builder, plans, specifications, budget, and your financial packet. 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.

Yes. It is possible to be your own contractor.  To do so, you must demonstrate previous experience in building a home or work in a related trade that would support your ability to successfully complete the project.  

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

The maximum loan amount depends on your personal 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). 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.

If you have owned the 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, we may be able to use the purchase price of the land toward your down payment.

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