The Walden Way

July 21, 2025

How Construction Loans Work: Build Your Dream Home with Confidence

Learn how construction loans work, what makes Walden Savings Bank’s program unique, and how to simplify the process from blueprint to move-in.

There’s nothing quite like the excitement of building your own home. From picking the perfect plot of land to watching your vision take shape, one brick at a time. At Walden Savings Bank, we’re proud to offer construction loans designed to help you bring your dream home to life with flexibility, simplicity, and expert support every step of the way.

What is a Construction Loan?
A construction loan is a short-term loan that covers the cost of building a home. Unlike traditional mortgages, these loans are structured to provide funds in phases as your home is built, allowing you to stay on budget and on schedule. Once construction is complete, the loan can easily transition into a permanent mortgage, eliminating the hassle of multiple closings.

Why Choose Walden Savings Bank for Your Construction Loan?

Here are just a few of the features that set our construction loan program apart:

• Fixed and Adjustable Rate Options: Choose the loan structure that works best for your financial goals.
• Free Rate Lock: Lock in your rate upfront, giving you peace of mind while your home is under construction.
• One-Time Closing: Enjoy the convenience of a single closing that covers both the construction phase and permanent financing.
• Act as Your Own General Contractor: Have experience or a vision you want to lead? Our program gives you the flexibility to manage your own build.
• Up to 85% Financing: Secure financing for up to 85% of your completed home’s value.
• No Points Required: Keep more money in your pocket with no points required at closing.
• Flexible Construction Period: Take up to 12 months to complete your build, with disbursements made along the way.
• First-Time Homebuyer Friendly: If you’re building your first home, we’re here to help make the process easy and approachable.
• Loan Amounts Up to $806,500: Planning a larger build? Jumbo mortgage options are available for higher loan amounts.

Your Partner From Blueprint to Move-In
Whether you're constructing your forever home or a weekend getaway, Walden Savings Bank is here to support you from the first blueprint to the final walk-through. Our experienced mortgage team is local, responsive, and ready to guide you through every stage of the construction process.

Ready to Get Started?
Let’s turn your dream home into a reality. Visit Walden Savings Bank- Construction Loans or contact one of our mortgage experts today to learn more about our construction loan options.