Are you ready to build, renovate, or expand your home?
Leader Bank’s Construction-to-Permanent Loan offers fast decision making and quick closings with specialized construction financing for homeowners looking to expand or renovate their existing home, or build a brand new property.
With a large lending footprint across the region, and an expert team of loan officers, construction financing with Leader Bank offers a range of benefits:
- 100% construction financing
- Low fee structure and competitive rates
- High loan limits for larger projects
Additional Builder-to-Buyer Benefits:
- Only one closing—save time and money
- Tap into your home’s future equity
- Access more funds than a traditional HELOC
- 12-month construction period (extensions available)
Leader Bank’s Construction Loans are designed to give homeowners and homebuyers the flexibility they need when building, expanding, or transforming a property. Whether you’re constructing a new home on an empty lot or planning a major renovation, our Construction-To-Permanent financing streamlines the process from start to finish.
Frequently Asked Questions
A Construction‑to‑Permanent (CTP) Mortgage is designed for borrowers building a new home, completing a substantial renovation, or adding onto their primary, single‑family residence. During the construction phase—typically 12 months—borrowers make interest‑only payments on funds disbursed for the project. Once construction is complete, the loan automatically converts into a traditional long‑term mortgage with just one closing required.
Leader Bank’s CTP loans begin with a 12‑month construction period. After this phase ends and the home is ready for occupancy, the outstanding principal transitions into a standard amortizing mortgage over the remaining loan term. This structure allows borrowers to focus on their project without the burden of full mortgage payments during construction.
This financing can cover purchasing a new piece of land or refinancing an existing property while also funding a specified construction budget. Leader Bank finances up to 100% of hard construction costs, provided the total loan amount remains within 80% of the completed home’s appraised value. Construction budgets, plans, and contractor specifications help us determine the appropriate loan amount.
Leader Bank’s CTP mortgage provides several key advantages:
- One application and one closing for both construction and permanent financing
- Access to future equity, allowing borrowers to finance up to 80% of the home's as‑completed value
- Streamlined budgeting and disbursements, coordinated through a milestone‑based draw schedule
- 12-month construction period (extensions available)
Our team collaborates daily to ensure timely reviews, inspections, and fund releases, helping your construction project stay on schedule from beginning to end.
Unlike traditional mortgages or home equity lines of credit, which base lending limits on your home’s current value, a Leader Bank CTP mortgage is designed around the future value of your completed project. By analyzing your architectural plans, specifications, and budget, appraisers determine the projected market value of your home once construction is finished. Leader Bank can lend up to 80% of that projected value, making it an ideal solution for borrowers who need financing beyond their current equity position.
Leader Bank will create a customized disbursement schedule aligned with your builder’s itemized budget. Each milestone represents a phase of work and an associated amount of funding. When a milestone is completed, you or your builder simply notify our team.
Inspections are completed quickly by our construction review personnel, and once approved, funds are disbursed directly into your Leader Bank checking account. Our commitment to daily coordination ensures draw requests are processed efficiently so your project keeps moving.
To get started, borrowers should provide:
- Final architectural plans
- Detailed specifications
- A comprehensive cost estimate from a licensed general contractor
A member of Leader Bank’s Construction Lending team will guide you through the application, review your project details, and help you determine the best financing structure. Our specialists are here to support you from your first inquiry to the final inspection.
Are you aware of the Property Acquisition Loan from Leader Bank?
Finding the right property is often the hardest part of building a custom home or completing a major redevelopment project. Unfortunately, buyers aren't always ready to begin construction when the ideal property becomes available.
This program* allows borrowers to purchase vacant land or properties that aren't yet ready for traditional financing while they complete planning for a future construction or renovation project.
During this phase, borrowers can make interest-only payments while they work on:
- Home or project plans
- Builder selection
- Budget development
- Permits and approvals
- Construction timing
The program is designed with an eventual transition into construction financing in mind.
- Buy land now and build later
- Interest-only payments during planning and construction
- No pressure to rush important decisions
- One lender from start to finish
- Seamless transition from acquisition to construction to permanent financing
The right property may not wait until you're ready to build. With a Property Acquisition Loan from Leader Bank, you can secure the opportunity today and move forward with confidence when the timing is right.
Buy now. Plan confidently. Build when you're ready.
Credit approval required; terms and conditions apply. Property Acquisition Loans are available for properties purchased with the intent to build a primary residence in the future; however, any dwelling on subject property may not be occupied by borrower as a primary or secondary residence during the life the term of the loan. Available only for properties located in Connecticut, Massachusetts, Maine, New Hampshire and Rhode Island. For specific rates, terms and conditions, please contact a Leader Bank loan originator.
