Construction loans for 1 to 4 family residences are a specialty of First Federal Bank, from the design of the loan to fit your needs through the combining of the construction and permanent loans to avoid a second set of closing costs. We work closely with builders, title companies and other mortgage companies which will help every aspect of your construction go smoothly.

Construction-Permanent Loans - First Federal has created a flexible loan product that meets the unique demands of the home building process. Our Construction-to-Permanent Loan is like having two loans in one. Loans are made to individuals who have contracted with a builder or plan to construct a single family residence themselves for their occupancy. As the expenses are incurred, monthly draws are made on the loan. Only the interest amount due is paid during the construction phase on the outstanding principal balance. The borrower has 12 months to complete the construction. After construction is complete the loan converts to a First Federal mortgage loan with regular monthly payments. Because the two loans are treated as one, there will not be two sets of closing costs! This program allows the buyer to eliminate the risk of not being able to lock in an interest rate during construction, take advantage of interest deductions during the construction process, and save on closing cost.