Are you planning to build a new home?
Fifth District can provide financing through a one-closing construction loan which will save you time and money. This type of loan features low closing costs that are paid only once and a locked-in interest rate at application, for both the construction and permanent portion of the loan. Follow these easy steps to build the home of your dreams.
Step 1
Arrange a pre-qualification meeting with a Fifth District construction loan specialist. Call 504-363-6505 or email loan@fifthdistrict.com.
Step 2
Finalize home site selection, house plan design, and contract negotiations with your builder. We will need a copy of your building contract signed by a Louisiana licensed residential contractor and 2 sets of plans and specifications at the time of loan application.
Step 3
Loan application, processing, and closing - Fifth District will take and process your loan application. During this process, we will order an appraisal based on your building plans and contract. We will also verify your income and assets. Upon loan approval, we will set the loan for closing. This process typically takes 30 days.
Step 4
Once the loan is closed, construction can begin. Fifth District uses a 5 draw payment system which allows for periodic payments at various stages of completed construction. During the construction period, interest and escrow payments will be required. The typical construction period is 12 months. The loan will convert to a permanent loan after 12 months and the full principal and interest payments will be required.
As always, Fifth District allows you the freedom to apply additional funds to the principal of your loan. By applying additional funds during the construction period, your loan will convert at a lower principal balance and payments can be re-amortized at conversion, thereby lowering your monthly payment. Additional principal payments made after conversion will also lower your balance which can be re-amortized for your convenience.
*Terms and conditions of our construction loan program are subject to change without notice.
Stop by one of our offices for more information!
Call 504-363-6505 for current rates.