Lot & Construction Home Loans

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Our Construction & Land Lot Loans

Building your dream home is an exciting endeavor. At Midland States Bank, we provide loans to make financing those dreams easy and stress-free.

Construction Loans

A construction loan is a short-term loan you can use to finance the construction of a new home. During construction, you can make interest-only payments at a fixed rate. Once construction is complete, you can convert the loan to a permanent mortgage.

Land Lot Loans

If you want to purchase land to build a home, a lot loan is the perfect solution. A lot loan allows you to purchase property before you begin construction.

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How pre-approval helps your home search

You Might Say We're Unlike Any Other Bank

At Midland, we know it only takes a moment for an idea to spark, to find your dream home, or to start planning for your forever. Whatever your moments are, we're here for them. Learn who we are.

My loan officer was efficient, knowledgeable, and extremely patient with all my questions and my frustrations with VA loan requirements. I first contacted my personal bank and had a poor experience, but Midland stepped in and supported me every step of the way. I hope all veterans get that level of guidance.

Ruth, Customer

The knowledge, expertise, and professionalism of my loan officer was outstanding.

David, Customer

Key Features & Benefits

Save Money

Save money during construction with a low, fixed interest rate, interest-only payments and one upfront closing cost.

Gain Flexibility

Buy the land you want without the pressure of building immediately.

Seamless Transition to Permanent Financing

Our construction loans easily convert to a traditional mortgage once the build is complete, simplifying the financing process.

Create Your Perfect Home

A construction or lot loan gives you the freedom choose where you want to live and the ability to make your home completely yours.

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Build Your Dream Home with a Construction or Lot Loan

1. Get Pre-Approved Reach out to one of our construction and lot loan experts today to explore your options or get pre-approved online to understand your budget and financing potential.

2. Choose Your Site With your pre-approval in hand, start searching for the perfect lot or begin planning your dream home build with confidence.

3. Close the Deal Finalize your loan, sign the paperwork, and get ready to break ground on your new home!

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Quiz: Find Your Ideal Home Loan

Explore quick, interactive quizzes to pinpoint a loan tailored to your needs. Where are you in your home financing journey?

Take the Home Buying Quiz

Take the Refinancing Quiz

Take the Home Building Quiz

Frequently Asked Questions

Why open a home construction or lot loan with Midland States Bank?

When you get a construction or lot loan from Midland States Bank, you'll benefit from:

Easy application: Apply online in just minutes from your computer or smartphone.
Competitive rates: We offer competitive interest rates on all our home construction and lot loans.
Full-service approach: We work closely with you throughout the process to ensure all your needs are met.
World-class customer service: We provide attentive service and loan options tailored to your exact needs.
Loan expertise: Our mortgage experts have the knowledge and experience to make your loan process go smoothly.

How do construction loans work?

Once you get approved for a construction loan, we disperse the loan amount in increments according to our agreed-upon schedule, known as a draw schedule. You then make interest-only payments on the part of the loan that has been dispersed. Once construction is complete, we can close on permanent financing. You can lock in your rate six months prior to closing.

What qualifies as a lot?

A lot is land suitable for residential development. It should have features like appropriate zoning, access to public roads and utility connections.

What are the requirements for construction and lot loans?

To secure a construction or lot loan, you'll need good credit and a low debt-to-income ratio. You'll also be required to make a down payment. If you're taking out a construction loan, you'll need to provide a detailed construction plan.