Couple standing together in the carpentry wooden frame of a new home

Construction Loans

  • Generous LTV as high as 95%
  • Fixed-rate or adjustable-rate mortgage loan options
  • Expanded new construction or remodel timelines (up to 12 months)
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Flexibility: One Loan and Multiple Ways to Use It

With one rate, one closing, and one loan, we roll your construction and mortgage financing into a single, convenient package. Lock your rate before construction begins, enjoy interest‑only payments while you build, and transition seamlessly to a permanent mortgage when your project is complete. When you’re buying and/or building on land anywhere in New Hampshire, we’ve got you covered—backed by dedicated experts guiding you every step of the way.

You can you use our construction-to-permanent loan to:

  • Purchase land and build a home on that land. 
  • Finance construction of a home on a previously purchased lot (and combine any existing mortgage with your construction-to-permanent loan).
  • Finance a remodel of or addition to your current home.
  • Building or renovating an Accessory Dwelling Unit (ADU)
  • One-or-two family primary residence

How Construction-to-Permanent Financing Works

You choose your mortgage terms with options including a fixed or adjustable-rate mortgage loan.

Apply online

You Select

Your permanent mortgage terms, lock in an interest rate, and complete a one‑time closing up front—with convenient pre‑approval options that help you choose your terms and decide how you want to get started, before your contractor even breaks ground.
Loan and Deposit rates

During Construction

You make interest-only payments only on disbursements made. 
Black and white icon of a house

After Construction

Your loan transitions to a permanent mortgage, and you make monthly payments that include principal, interest, and escrow, if applicable. 

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Construction-to-Permanent Loan FAQs

Still have questions? These FAQs are here to help before you take the next step with a St. Mary’s Bank mortgage specialist.
Is a construction‑to‑permanent loan right for me?
If you’re buying land or building a home anywhere in New Hampshire, a St. Mary’s Bank construction‑to‑permanent loan may be the right solution. This program is designed for members who want a simple, streamlined way to finance construction and transition seamlessly into permanent mortgage financing—using one loan and one closing.
How long does it take to close a construction loan?
Once you’ve selected a builder and finalized your plans and building specifications, most construction loans can close within approximately 60 days. Our experienced New Hampshire‑based team works closely with you to keep the process moving efficiently.
Is there a limit on how much my builder can be paid during construction?
Builder disbursements are based on the progress of construction. Funds are released after inspections confirm that the completed work aligns with the approved project plans, helping protect both you and your investment.
Who can I contact if I have questions during construction?
You’ll have the support of a dedicated construction loan administrator who serves as your personal point of contact throughout the build. She will work directly with you and your builder to coordinate inspections, manage disbursements, and answer questions—so you’re never navigating the process alone.
What happens if my construction project goes over budget?
If changes are made to your construction contract through a builder change order, any costs beyond the original agreement would be your responsibility. We encourage proactive communication to help you plan confidently throughout your build.
What are some fees I should expect with a construction loan?
Construction loans typically include some fees related to the building process—such as construction administration, inspections, or title updates—and your St. Mary’s Bank lending team will walk through all potential costs upfront so you know what to expect. The good news? When your loan transitions from construction to a permanent mortgage, there are no additional St. Mary’s Bank fees.
Construction to Perm Image of house being framed

Construction Program Booklet

Download Your Guide to Building On, Up or Out with a St. Mary’s Bank Construction-to-Permanent Loan.
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Our Mortgage Specialists

Still have questions about Construction-to-Permanent loans? With decades of combined experience, our mortgage loan specialists are ready to discuss mortgage options, terms and rates in detail to help you get your project under way.

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