Home Construction Loans

Home construction loans are the next step after you purchase a lot and decide what you would like to build for your new home.

What is the difference between a home construction loan and a typical mortgage?

In a typical mortgage, a home already exists and may have a history of being purchased and sold—in other words, a specific value of the home has been established. Such a history does not exist with a new home that is under construction, and many banks therefore have more stringent requirements for home construction loans. Establishing the value of something that has not been built yet can be challenging.

Community Bank & Trust of Florida has a unique advantage with home construction loans in Gainesville, Ocala, The Villages and in the broader area of Marion, Sumter, and Alachua counties—we know our community.

  • Knowing a community well means that we have a strong sense of what recently built homes of different sizes and in different locations are worth.
  • Due to this, we can give you a better sense of the type of financing commitment we can make for new construction, and in some instances we may be able to act more quickly in committing to lend than a larger bank.

What type of home construction loan does CBTFL offer?

We offer construction to permanent financing, where the lender advances the money to pay for construction which eliminates the need for two different closings. The loan is interest only during construction phase and then converts to principle and interest payments.

What do I need to do to get started?

You may be interested in reading about CBTFL’s lot loans, as this type of financing is often taken out first before deciding to build. If you are in Gainesville, Ocala, The Villages, or elsewhere in North Central Florida, contact us today or visit one of our branches for more information about all of these options.

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