Home Construction Financing in Nashville
Looking for a lender who truly understands the Nashville market? With MB&T’s local professional loan services, we’re here to help you lay the foundation for your future home. Our new home loans are built around flexibility and convenience, designed to make the building process as smooth as possible.
Competitive Rates
Our rates set us apart and save you money over the course of your loan.
Local Processing
Your paperwork is handled locally, for quicker decisioning and an even quicker start on your project.
Flexible Terms
We offer a variety of repayment terms, with choices that designed with convenience in mind.
Start your build on your time
When you’re ready, explore a variety of residential construction loans, including options for building a new home, renovations, and more.
What is a construction loan?
With a construction loan, borrowers access the funds necessary to cover the costs of construction as the project evolves. This allows borrowers to pay interest only on the portion of the loan drawn instead of the entire loan amount while ensuring that ample funds exist to complete the construction project.
Which projects are best suited for home construction financing?
- New Home Construction*: Helpful when working with a builder who requires payment installments.
- Home Renovations: Useful for extensive renovations or remodeling that requires significant funding
*New Home Construction and Renovations: Builders require progress payments as your project evolves. Construction loans allow you to borrow against the future value of the finished project AND allow you to fund the project as progress is made so that you have not advanced more than what work has been completed.
Construction Loan FAQs
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What projects are not eligible for a construction loan?
Some projects that may not be eligible for a construction loan include luxury home construction, land purchases without immediate plans for construction, and speculative construction.
How do I know how much to borrow?
The amount you should borrow for a construction loan depends on several factors, including the cost of the project, your budget, and the amount of equity you have in the land.
How to apply for a construction to permanent loan?
To apply for a construction to permanent loan, you will need to provide documentation such as construction plans, proof of income, and a list of assets and liabilities. The application process typically involves a credit check and an appraisal of the property.
What documents do I need to apply?
Some of the documents you may need to provide when applying for a construction loan include your personal financial statements, tax returns, proof of income, a detailed list of assets and liabilities, and construction plans.
How much down payment do I need?
The down payment required for a construction loan varies depending on the lender and the project. In general, a down payment of 20% to 25% of the total project cost may be required. However, some lenders may offer programs with lower down payment options.
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Ready to take the next step in your construction project?
Contact MB&T today to learn more about our building loans in Nashville. Our experienced team is dedicated to helping you navigate the loan process and achieve your construction goals. Let us help you turn your dream project into a reality. Get started now!
Construction Loan Services
Whatever your construction financing needs, MB&T's Nashville loan experts can help you find the right solution at a competitive rate. Our services include:
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New Home Loans
If you're looking to build a brand new home from the ground up, our custom home financing in Nashville can help you move forward with your project. With competitive rates and repayment terms of up to 12 months, we make it easy for you to pay off interest quickly and manage your payments during the construction phase. Our construction draws are applied in stages based on work completed, allowing you to pay your builder as you go.
Renovation Loans
Our renovation loans can provide the funding you need to make major improvements to an existing home, whether you're purchasing a fixer-upper or renovating your current property. We offer flexible repayment terms and competitive rates to help you achieve your renovation goals, whether you're looking to update your kitchen or add an addition to your home.
Land Loans and Lot Loans
If you already own the land where you plan to build, our land/lot loans can help you finance the construction process. With competitive rates and repayment terms of up to 12 months, we make it easy for you to manage your payments during the construction phase. Our construction draws are applied in stages based on work completed, allowing you to pay your builder as you go.
Conventional Home Loans
For those who prefer a more traditional mortgage option, we offer conventional home loans that can be used for both new construction and home renovations. Our experienced loan officers in Tennessee can help guide you through the process, and our competitive rates and repayment terms make it easy to find a loan that fits your needs.
In-House Loans
Our in-house loans provide flexible financing options that can be customized to fit your unique needs. Whether you're looking to build a new home or renovate an existing property, our experienced loan officers can help you find the loan that's right for you. With competitive rates and flexible repayment terms, we make it easy to achieve your construction goals.
HELOCs
Home Equity Lines of Credit can provide a source of funding for ongoing construction projects or home renovations. With our competitive rates and flexible repayment terms, we make it easy to access the funds you need to complete your project. Plus, with interest-only payments during the draw period, you'll have more flexibility in managing your finances.
Commercial Real Estate Loans
If you're looking to build or renovate a commercial property in Tennessee, our real estate loans can help you get the financing you need. Our experienced loan officers can guide you through the process, and our competitive rates and repayment terms make it easy to find a loan that fits your business needs.
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Our Construction Loan Process
Our streamlined process ensures a smooth and efficient journey from start to finish. Here’s an overview of how our home construction financing process works.
Ken Smart
Senior Vice President, Nashville Office
Ken is Senior Vice President and lives here in Nashville. He is a graduate of Western Kentucky University with a degree in finance and a minor in military science. Ken is a former officer of the United States Army Reserve. Ken holds post graduate degrees in banking from both KBMI School of Bank Management, LSU Graduate School of Banking, and the ABA Stonier Graduate School of Banking. Ken has over thirty years of banking / lending experience with expertise in commercial real estate, residential real estate, construction lending as well as consumer lending.
Why Morgantown Bank & Trust?
Morgantown Bank & Trust cares about its customers like family and makes them customers for life. MB&T is a locally owned community bank headquartered in South Central Kentucky. We understand your needs and work hard to provide you with competitive products and avoid as much “red tape” as possible, which is often the case in today’s “big bank” environment.