Construction

Build Midland States into your plan.

We're ready to get to work for you.

Is building a new home in your plans? Midland States Bank provides construction financing to make your plans a reality. Our financing programs allow you to apply for both your construction and permanent financing at the same time. During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, you will close on your permanent loan.

Benefits of a Construction Loan

One step financing.

Apply for your construction loan and permanent financing at one time to get qualified for both loans.

Fixed rate during construction.

The interest rate is fixed during the construction phase, as well as a fixed rate mortgage if you choose.

Easy draws.

Draws are negotiated and specific to each project to allow the construction continue without interruption.

Interest only payments.

On construction loans, interest only payments are made based on the amount disbursed.

Convenient payments.

Your monthly payment can be made at any Midland States branch or you can pay online.

How the process works.

Construction loans are different from other kinds of mortgage loans. With mortgages, the home is considered the collateral for the loan. Though we never want our borrower to fail on making payments, should it happen, the home can sold to recover the amount of the loan. There is no such collateral backing a construction loan, so we have no guarantee that the loan will be paid. Once you have been approved for the construction loan, we will disburse the loan in increments according to an agreed upon schedule. This is known as a draw schedule.

The agreed upon draw schedule might state that the loan will be disbursed in 25% increments with each 25% of the construction that is complete. Once a portion of the construction is completed, appraisal of the work is done. After the appraisal states that 25% of the work has been completed, the lender disburses 25% of the loan. You then begin making interest only payments only on the part of the loan that has been disbursed. Your monthly payment increases as more of the loan is disbursed.

Once the construction is complete, the amount of the loan will be due. We realize that you will need permanent financing to pay off the construction loan, so we work with you prior to the construction loan to get you approved for permanent financing. When you are ready to apply for the construction loan, you will need a commitment letter from your mortgage lender if it is not Midland, along with the plans for the construction and a qualified builder.

Construction and Permanent financing.

Our construction and permanent financing process begins at the same time. We will sit down with you to complete the necessary application paperwork for both the construction loan and the permanent financing. Upon approval, the construction loan closing will take place and your project can begin. Once your construction is complete, we will sit down with you to complete the permanent financing closing. Your mortgage interest rate will be determined at the time of closing.

Your trusted lending partner.

Most people will only buy a few homes in their life and each home purchase may be the largest financial decision they have made to date. So, it's understandable that you need to find an option that is right for your financial situation and the right expert to help you through the maze of home financing. That's were we come in. Whether you've purchased homes before or you have little to no experience in buying a home, we will make sure no question is left unanswered. We believe in doing the right thing, for the right reason – that means you will receive personalized service through each step of buying your dream home. We do this with a team of experienced mortgage lenders who understand the industry and will help you with what you need, what to expect and how to get in your home quickly and easily. After all, that's what we do - everyday.

Get answers, apply online or find a great rate.

Call us.

Still have questions?

We’re ready to help answer your questions or assist you with your application. Just call us toll-free at 1-855-MY-MIDLAND or stop by any Midland banking center.

Apply online.

Apply online today.

Save time and a trip to the bank when you apply for your mortgage loan using our online application. We’re ready to help if you have questions. Apply now

Tools and Resources.

Online tools and resources.

We'll help you learn more about getting a home loan by giving you online access to resources and tools to help make getting a loan easier. Learn more