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Build Your Home With Confidence

Home Construction Loans

Every build is different. That’s why we offer two construction loan options—traditional and one-step—so you can decide whether you value flexibility at closing or the security of locking in your rate before construction begins.

Laying Bricks
Limited Time Offer

Construction Loan Special

5.99%*

Ready to build your forever home? 

Our limited-time construction loan offers:

  • APRs starting at 5.99%* for 12-months while you are building

  • Interest-only payments during construction.

  • $100 closing discount with autopay

This offer ends December 31, 2025 or when the allocated funds are gone - so act fast!

*APR means Annual Percentage Rate. Fixed during 12-month construction phase and requires interest-only payments on balance owed from advances used to complete construction. At the end of construction, permanent financing for a mortgage will be arranged upon your specific scenario and structure of your request. APR for mortgage will be determined at that time and may be different than the construction period APR. Closings costs and other applicable fees (such as HOI premium) apply. Minimum credit score of 660 to qualify. Maximum loan amount of $750,000. Limited time offer. Subject to change without notice.

Construction Loan Options

Both the One-Step and Traditional Construction Loans are built to make building, rehabbing, or remodeling your home smoother. You’ll benefit from interest-only payments during the construction phase to keep cash flow manageable, flexible draw schedules with inspections to ensure your project stays on track, and financing that covers land, materials, labor, and permits. Plus, our local lending team brings Ohio expertise and provides guidance from start to finish—so you’re never left guessing about the next step.

Traditional Construction Loan
Finance your build with a short-term loan, then refinance into a permanent mortgage when your home is complete.

This option keeps construction and long-term financing separate, giving you flexibility to choose your final mortgage when the time is right.
One-Step Construction Loan
Lock in your mortgage rate before construction begins.

Make interest-only payments during your 12-month build, and when the project is finished, your loan automatically converts to permanent financing—no second closing required.

How The Construction Funding Process Works

Step 1
Pre-Qualification & Lot Approval

Share your plans, budget, builder info, and land details.

Step 2
Choose Your Loan Type

Decide between a traditional or one-step construction loan.

Step 3
Construction Phase & Draws

Funds disbursed in stages, with inspections to confirm progress.

Step 4
Finalize Mortgage Conversion

Refinance into your chosen mortgage after the build.

 

Today's Rates

Rates shown are Annual Percentage Rates (APR) and are subject to change.  Terms and conditions apply.  Payment examples available upon request.

One-Step Construction Loan 15-Year Term 6.875% 6.938% APR*
One-Step Construction 30-Year Term 6.875% 6.917% APR*
Traditional Construction Loan 12-Month Construction 4.950% 5.999% APR*
Why Home Builders

Finance With Osgood Bank

Local oversight with lenders who understand Ohio building projects.

Transparent draw schedules and inspections that keep the build on track.

Peace of mind knowing your financing is secure before you break ground.

Osgood Bank helped make the process of building our dream home as easy as possible. With so many choices having to be made, knowing we wouldn't have to worry about anything from the bank made our lives less stressful and allowed us to focus our time and efforts on other aspects of building our home.
Scott D.

Ready to Build?

Frequently Asked Questions

Construction Loan Questions

How can I prepare to build a home?

Prepare your finances

Once you have an idea of your budget, the next step is to save for a down payment. Construction loans require a 10% down payment.

In preparation for your pre-approval, review your debt-to-income (DTI) ratio. Your DTI is the sum of all of your debt payments divided by your gross monthly income. An ideal DTI is less than 36%. 

Check your credit score. Better credit reports and higher scores make it easier and cheaper to borrow.

Learn More About Credit Scores

 

Gather your documentation

To get started, schedule a meeting with your builder to discuss your vision and plan a build within your estimated budget. 

Please gather the plans and specifications from your builder along with the construction agreement that specifies the cost of your house - including options and upgrades.

You will also need 30 days of pay stubs and two years of tax returns and W-2s. 

Do I have to own the land before applying?

Not always. We can finance land acquisition as part of your construction loan.

How do construction draws work?

Funds are disbursed in stages (foundation, framing, etc.) after inspections verify progress.

What happens if I want to make changes during my build?

It's not uncommon to want to make changes or upgrades to your original plans once you have started construction. However, you generally must pay costs associated with any changes or upgrades during the construction. 

Thorough planning, a good checklist, and detailed plans and specifications will help keep your project in line. We are here to help you navigate through these situations as they arise. 

When do I start paying principal?

During construction, payments are interest-only. Once converted, you begin regular principal + interest payments.

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