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Land and Construction Loans

Have you always wanted to build the home of your dreams from the ground up? New home construction has become increasingly popular in Northern Virginia as buyers tear down older housing and replace it with bigger, more modern homes.

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TFB offers land loans if you need to purchase a plot to build on. We also provide short-term construction financing that can be converted into a permanent mortgage once the project is finished. Partner with TFB for hassle-free land and construction financing from start to finish. We can serve all of your short-term loan needs and help you choose from our menu of permanent mortgage loans.

How do construction loans work?

Construction financing is a short-term loan with a maximum term of about one year. Construction loans come with a variable rate that adjusts up or down according to the prime rate. You may be able to make interest-only payments during construction in order to keep the building process affordable. As a locally-owned community bank, TFB works with our customers to provide flexible loan terms that meet your needs.

How do land loans work?

A land loan finances your purchase of a raw or improved lot to eventually build a home or homes on. Community banks like TFB are more likely to provide land loan financing than other lenders because of our local expertise and commitment to investing in Northern Virginia. We know the real estate market well and can accurately assess the value of the land you're interested in purchasing.

How does financing work when building a house?

You can choose between two types of financing for building a house: construction-to-permanent or construction-only. Many home builders prefer the first option because it offers a two-in-one loan. The main benefits are having one set of closing costs (thus, lower fees overall) and the convenience of working with the same lender throughout the process.

On the other hand, a construction-only loan may be more affordable because it comes with a lower down payment. If you're waiting to sell the home you're in now, you may be able to use the proceeds to pay some or all of your construction loan off. However, if you end up taking out a construction loan and permanent mortgage separately, you'll have to cover two sets of closing costs.

You can also use government-insured home loans such as FHA Loans, VA Loans, and USDA Loans to finance the construction of your new home. Talk to a TFB mortgage lender for details, and be sure to ask about our construction to perm loan with one-time closing and a 10-year term!

Contact a TFB Mortgage Lender Today!

Ready to learn more about land and construction financing, as well as your other home loans options? Contact our local mortgage lenders; visit your nearest TFB branch in Manassas, Haymarket, Bristow, Gainesville, Warrenton, The Plains, New Baltimore, Catlett, and Bealeton; or apply online. You'll love our personalized service and local expertise in Prince William and Fauquier County real estate.

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