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Construction Loans

Construction Loans
At First Merchants, you’re more than just a loan. We know building or renovating your home can feel like a big undertaking, and that’s why our construction home loans are set up to make the process smooth and easy. 

With our construction-to-permanent loan program, you’ll have a short-term loan (usually 12 to 18 months) that converts to a traditional mortgage when the project is complete—all with one convenient closing.

Our experienced, attentive construction lending team is here to help every step of the way. They’ve worked in the construction field, so they understand what it takes to help you succeed. Any bank can provide funding, but First Merchants cares about providing you with so much more.  

APPLY FOR A CONSTRUCTION HOME LOAN


Construction Loan Program


Features

  • Loans up to $3 million1
  • Adjustable rate (ARM) and fixed rate options
  • Borrow up to 90% of the sales price or the appraised ‘Subject to Completion Value” of your new home
  • Up to 18 months to build2
  • Draw requests completed in a timely manner
  • Interest only payments during the construction phase
  • Single, one-time closing
  • Option to convert to current mortgage rates after construction is complete (terms apply)
  • Local underwriting and servicing, quick turnaround times, and a local team you can turn to

Designed For

  • Financing new construction or renovating an existing home
  • Building on your lot or purchasing a lot

Eligibility

  • Primary and secondary homes
  • Property must be located in Indiana, Michigan, Ohio, or Kentucky 
  • Minimum credit score of 680

Applying for a construction loan is very similar to applying for traditional mortgage financing. Our team will review your information and reach out with any questions or if additional documentation is needed. You’ll also need to provide information about your builder so we can make sure they meet our requirements. 

Meet with an attentive mortgage professional to evaluate your current situation and better determine which mortgage options might be right for you.

CONTACT US TODAY

 

Will First Merchants Bank help me choose a builder?
  • No. It is your responsibility to properly vet your builder by reviewing their previous work, talking with other homeowners, and contacting their subcontractors and suppliers. You will also want to check with the State to see if there were any complaints filed against their builder’s license. The BBB is also a good source for this information. You are going to be working with this builder closely for the next year or more completing your project. First Merchants Bank does register the builders by reviewing the Builder’s Questionnaire Form (First Merchants Bank form but completed by the Builder) and other supporting documentation supplied by the builder. Make sure to spend your time wisely by performing your own due diligence. This is an important decision and should not be overlooked. 
 
Still have questions? Check out our Construction Loan Handbook to learn how First Merchants can be there for you every step of the way.

Construction Loan Handbook

Clicking this button will download a PDF document to your device.

 

1 Higher loan amounts may be available upon request.

2Extensions available up to a maximum of 24 months. Terms apply.

 

All loans are subject to credit approval. Programs are available only to qualified borrowers. Not all applicants will qualify for all program benefits. Please contact First Merchants Bank to learn more about the program and the eligibility requirements. Programs are subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.


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