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home in beginning stages of construction

If you've always wanted to build a house, construction and lot loans help make it possible.

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Our Construction and 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. Depending on your needs, you can choose between two types of loans:


Construction Loans

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

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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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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.

Start the Home Purchase Process

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Benefits of Construction and Lot Loans


icon with percent symbol in orange square and an arrow pointing downSave money.

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

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icon of a marker on a map with a dollar symbolGain flexibility.

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

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icon of a house and sparklesCreate your perfect home.

A construction or lot loan gives you the freedom to create your dream home.

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Frequently Asked Questions

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.

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

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.

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Midland States Bank: A Top Mortgage Company

Midland States Bank is a local mortgage company serving homebuyers in Illinois and Missouri. We offer a range of services and industry expertise to help you with all your homebuying needs.

Get Started

Ready to start the mortgage process? Contact one of our construction and lot loan mortgage experts to learn more about your options or get pre-approved to see an estimate of what you can afford.

See What You Can Apply For