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Top 5 Construction Loan Questions Answered

June 7, 2019    |     Melinda White


Building a home is a very exciting opportunity to showcase your unique style! With an array of layouts, colors, and finishes to choose from, the least of your worries should be how you will finance it. Listed below are 5 of the most common questions you may have regarding the construction loan process, answered by Lending Professional, Melinda White with The Farmers National Bank of Emlenton:

  1. Do I need to have a 20% down payment to apply for a construction loan?
    No; Farmers may finance up to 90% on construction loan requests. 
  2. Will the land I plan to build on be included in the construction loan amount?
    It is up to you! You may own the land prior to construction or you can purchase the land as part of the total construction loan package. If you own the land outright, this may, in some cases, be used as part of your equity, or down payment for the loan.
  3. How many closings take place during the construction loan process?
    One; Farmers National Bank only has one closing, prior to the start of construction.  The amount requested and approved for the construction loan remains the same. 
  4. Will I have to pay the principal and interest during the construction phase?
    No; We have an average construction period of six (6) months, during which time the borrower will only pay the interest on the amount that has been used for construction.  At the end of the six-month construction phase, the loan will then proceed into regular principal and interest payments.
  5. Am I able to apply for a construction loan if I am building the home myself?
    No; Construction must be completed by a general contractor who is licensed and insured.  We are not able to finance owner/builder homes.

For more information about the mortgage process, visit or contact Melinda White at 844.226.7523.

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Equal Housing Lender, Member FDIC

About The Farmers National Bank of Emlenton:
The Farmers National Bank of Emlenton is an independent, nationally chartered, FDIC-insured community commercial bank headquartered in Emlenton, Pennsylvania, operating 17 full-service offices in Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, Mercer, and Venango Counties, Pennsylvania and Hancock County, West Virginia.  The Bank is a wholly owned subsidiary of Emclaire Financial Corp (NASDAQ: “EMCF”). For more information, please visit the website at or call 877-862-9270.


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