Team 101 Construction & Land Loans

Northpointe Bank’s Residential Construction Loans are simple, fast, and have many unique and desirable features that other banks, credit unions and lenders can’t match.

  • Loan amounts up to $1,500,000.

  • Offers interest only payments during the construction period
  • Eligible for primary residences and second homes
  • One closing and one set of closing costs
  • Flexible construction terms available
  • Easily combined with our vacant land loan program

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Building your Utah dream home is possible with loan amounts up to $1.5 million

Few Utah lenders and credit unions know how to work through the complexities and challenges of a construction loan quite like Team 101 at Northpointe Bank. Nor do they offer our streamlined process or flexible loan terms like low down payments and high loan amounts.

How Our Construction Loan Program Works

 One Closing, One Set of Closing Costs

Northpointe’s convenient construction-to-permanent loan combines the best features of a construction loan and permanent loan. There is one closing, one set of closing costs and the interest rate terms are confirmed prior to closing. You avoid extra fees and more paperwork!

  Interest Only During Construction

Only pay interest while your home is being built, and only pay on the draws that have been taken. No taxes, insurance, principal, or private mortgage insurance (PMI) during the construction phase, helping keep your cash flow healthy.

  Easy Draw Process

Northpointe’s construction lending department is on top of it! Along with personalized service from your local loan officer, they will assign you a construction account specialist that oversees the draw process and coordinates construction milestones with you and your builder.

 Use the Equity in Your Land

Already have land to build on? Roll the land’s value into your loan – it can often cover your entire down payment! Need to purchase a lot to build on? You can also combine your construction loan with a vacant land loan from Northpointe.

10 Simple Steps for Construction Loans

Are you considering building your dream home instead of purchasing existing but you’re worried about the process? Count on us to guide you through it. These 10 simple steps give you a basic idea of what to expect:


Choose your land


Select your loan product


Sign your construction contract


Apply for construction loan


30-45 days application to close


Construction 4-12 months


Certificate of occupancy


Construction loan modifies


Collect for Escrow

And the final step…

Construction Loan Frequently Asked Questions (FAQs)

A minimum credit score of 700 is required for a Northpointe Bank construction loan,  and loan amounts over $750,000 require at least a 720 credit score.

A Northpointe Bank construction loan has a maximum debt-to-income ratio (DTI) requirement of 43%. Please consult with your Northpointe Bank Loan Advisor for help calculating your current DTI.

Northpointe Bank provides construction loans for 1 unit primary residences, as well as 1-unit second homes. Northpointe Bank does not provide construction loans for investment properties.

A Draw is a request to have funds disbursed from your construction loan. Your disbursements are intended to cover specific expenses incurred during your home’s construction. Sworn statements and lien wavers/or receipts must be submitted to the title company and the bank’s construction department. They use these as a basis for processing your request.

Homeowners normally obtain Hazard Insurance, which is required by lenders. However, in the case of a construction loan, an additional insurance policy is often required to protect the work and fixtures that have already been completed or installed for your new home. This policy is generally referred to as Builders Risk Insurance.

The borrower is to make a request 21 days prior to construction maturity date to extend their loan. The borrower is responsible for all fees associated with the extension.

Yes, as long as you’ve owned the land for at least 1 day we consider the appraised value of the land in our loan-to-value (LTV) calculations when qualifying for the construction loan. Many lenders require 12 months ownership prior. This can help the borrower satisfy down payment requirements for their construction loan as well as obtain more favorable loan pricing, in many cases.

In most cases, we require a 10% contingency on our construction loans, which can help safeguard against unexpected rising costs. These funds can be used toward certain items during the build that go over budget due to uncontrollable circumstances.

We work with you and your builder to determine the best course of action for your number of draws. The cost of each draw and inspection is determined prior to close. If additional draws/inspections are needed, an additional cost will be incurred by the borrower. By working closely with you and your builder, many of these extra fees are easily avoided.

Disbursements on a construction loan are designed to reimburse the builder/contractor as the construction of the home progresses. We will disburse construction proceeds based on the amount of the work that has been completed on the project. For example, the budget is $100,000.00 and the project is 10% complete (based on the inspector’s view), Northpointe Bank’s Construction Lending Department will disburse up to $10,000.00 on the project. This disbursement would be in addition to any advances or deposits the borrower may be entitled to receive. Disbursements for soft or direct cost expenses must be verified by an inspection.

At each draw request, the borrower will sign a “Request for Advance” form to approve each draw prior to disbursement. When we receive the borrower’s Draw Request in the Construction Department, we immediately order an inspection to verify the status of construction on the Borrower’s home. The inspection is performed within 2 to 3 business days from the time we receive the Draw Request. When the inspector verifies the percentage of completion and we receive verification from the title company that the property is free of any mechanics liens, the Draw Request will be funded.

Draw funds are typically disbursed to the builder via wire or an overnight check. Disbursement options will depend upon what the draw/advance is for at the time of request.

By the time you make your final Draw Request, your home should be complete. You can then request your remaining loan funds (if additional funds remain), and “roll” your loan into the permanent loan phase, provided that the conditions out-lined in your Construction Loan Agreement are met.

Why Choose at Northpointe Bank?

The answer is clear:

More Options. Better Pricing. Period.

Join the many satisfied Utahns who’ve gotten their mortgage loan for their dream home through Team 101 at Northpointe Bank.

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