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Let’s Build Something Together
No one knows Southeastern Wisconsin like Tri City. We’d love to help you find a place in our community to call home. After all, this is our home too!
Our construction and land loans feature competitive rates, flexible terms and local service.
Easy One-Closing Construction Loan
The construction loan has different adjustable-rate mortgage (ARM) terms to choose from. It is a combination of a fixed-rate construction draw loan followed by an adjustable-rate permanent mortgage. You’ll have only one loan closing and pay closing costs one time. While the interest rate during the permanent phase is adjustable, the loan has caps that limit how much the rate may change both annually and over the life of the loan.
During the construction phase, your monthly payment will consist of interest on the funds drawn along with any escrow payments required for insurance and property taxes. After construction is complete, you will begin paying your full monthly mortgage payment, including principal, interest, taxes and insurance.
If you choose to refinance into a fixed-rate loan after construction is complete, we may be able to reduce your closing costs.
Bridge Loan
Remain in your current home and access the equity to buy or construct a new home. A bridge loan is a short-term loan with monthly payments of interest on the drawn funds, along with any escrow payments required for insurance and property taxes. When your existing home sells, the net proceeds of the sale are applied to the bridge loan, and then you refinance the remaining balance into a permanent mortgage loan.
Residential Lot Loan
This financing option is for borrowers purchasing fully developed residential lots for the eventual construction of their primary residence. The lot should be approved for septic and well if it will not have public sewer and water service.
Construction and Renovation Loans
| Product | Interest Rate | APR* |
|---|---|---|
| 5.99% 12-mo. | 7 Year Construction Adjustable Rate Mortgage (ARM) | 5.990% | 6.425% |
| 5.99% 12-mo. | 5 Year Construction Adjustable Rate Mortgage (ARM) | 5.875% | 6.307% |
Loan Calculator
construction & land loans FAQ
What type of construction loans does Tri City offer?
Tri City offers an Easy One-Closing Construction Adjustable Rate Mortgage (ARM) Loan. We also offer Lot Financing and Bridge Loans for those seeking to tap into equity on their existing loan.
What is the Easy One-Closing?
This loan is a combination of a construction draw loan and a permanent mortgage. You’ll have only one closing and pay closing costs once. Your interest rate is locked-in to the first adjustment date on the Adjustable Rate Mortgage (ARM).
During the construction phase, your monthly payments will consist of interest on the funds drawn, along with any escrow payments required for insurance and property taxes. After construction is complete, you will begin paying your full monthly mortgage payment.
Does Tri City National Bank offer Lot Loans?
Yes. However, if you are planning to build shortly after purchasing your lot, it is best to coordinate the lot purchase with your construction loan financing so there is only one loan and one closing. This will result in lower closing costs.
What is a bridge loan?
A Bridge Loan is for strong borrowers who want to access the equity in their existing home to construct their new home. This allows them to remain in their existing home while their new home is being built. Generally, these borrowers have significant equity and this single loan makes the loan payments more affordable during construction and until the existing home is sold.
A Bridge Loan is available as a 12-month construction loan and as an Easy one-closing construction loan. Monthly payments of interest on the drawn funds along with any escrows for insurance and property taxes. When your existing home sells, the net proceeds of the sale are applied to the Bridge Loan, and you will be able to refinance the remaining balance into a permanent mortgage loan.
Will Tri City National Bank work with my builder?
Tri City has a list of approved builders, if a builder is not an approved builder, they may request to be added to our approved builder list.
What down payment is required?
Tri City National Bank offers a low down payment option when the borrower is approved for Private Mortgage Insurance (PMI). PMI is not required on loans with a 20% down payment. Ask one of our mortgage lenders for details. Down payment is due at the time of closing.
Can I start building before selling my existing home?
Depending on your cash reserves and/or the equity in your existing home, you may be able to start construction before selling your existing home. Your income must be able to support the mortgage payments on both homes and any home equity loan taken to fund the down payment on the new home.
You may also consider a bridge loan that consolidates the new construction mortgage debt with the existing mortgage balances. This single loan makes the loan payments more affordable during construction and until the existing home is sold.
How can I get pre-approved for a construction loan?
Pre-approval applications can be submitted with one of our mortgage lenders in-person, over the phone, or online through one of our mortgage lender’s web pages here. Along with submitting a loan application, builders and real estate professionals expect that qualified buyers have verified income and assets with their lenders.