Construction lending is our specialty. Each year we provide financing for many homes in the Upper Cumberland area. To meet your construction financing needs, we currently offer two types of loans, short term construction-only loans and long term construction-permanent loans.

To apply for a construction loan, we need to know where you are building your home. A copy of your deed helps us with that information. Second, we need to know what you are building. A copy of your house plans takes care of that. Third, we need to know what it will cost. With this information, we can determine your loan amount. Last of all, we will need some basic personal and financial information including income verification, e.g., a current pay stub.

There can be many details and questions to consider when building a home and getting a construction loan. Feel free to call Lewis or Angela at 931-484-6178 to personally discuss any aspect of our construction loan programs. We look forward to the opportunity to assist you in the exciting venture of building a new home.

Construction-only loans are set up on a 12-month term loan with no points and a very competitive rate. During the term of the loan, you pay only the interest due each month based on the amount of funds drawn from the loan up to that point in time. We will consider lending up to 80% of the appraised value of your land and proposed home together.

Under special circumstances, Highland Federal may offer a construction-permanent loan.  This “in-house” loan is typically for situations where the loan will not conform to secondary market underwriting guidelines. It starts out just like the interest-only loan. Interest is paid monthly based on the amount drawn. However, this loan automatically converts to a permanent mortgage after the initial construction period, without any new paperwork or expense. This adjustable rate loan may be set up with terms up to thirty years. Call 931-484-6178 and talk to one of our loan specialists for further details.