Construction Loans

Our personal lenders specialize in construction financing. Your dream home may be built to your requirements, or you may remodel and renovate your current home to achieve your dreams. Harrington Bank construction loans typically have a twelve month term, during which you will pay interest on only the amount outstanding. Construction is financed from an escrow account according to an agreed upon disbursement schedule which is established when the loan is approved. At the completion of your project, our lender will work with you to choose your mortgage with attractive rates and terms.

Construction Loan Guidelines (these are guidelines only and subject to change based upon your unique needs or situation):

1. 1 year maturity
2. Payments are interest only during the term of the loan
3. Maximum of 80% Loan to Value (LTV)
4. Interest rate is normally Harrington Bank’s Prime Rate plus ½% to 1%
5. ½% origination fee
6. Builder must carry a current NC license.
7. Draw schedules are customized to the construction project using Harrington Bank’s standardized draw form
8. Borrower is responsible for all 3^rd party costs (attorney, filing fees, title insurance, etc.)
9. Borrower must have a debt to income ratio less than or equal to 36%
10. Borrower must have an acceptable credit score

If you are interested in obtaining a construction loan, this is the information we will need from you initially:

1. 2 years income verification with a current pay stub
2. An "as completed" appraisal
3. A copy of the contract between you and your builder with a cost estimate
4. A copy of the builder’s license
5. A copy of the builders risk insurance or borrowers insurance policy

For more information or to set-up an appointment with one of our loan officers, please call (919) 945-7873 or send an email to (Email Security).

« Back to Consumer Loans