Construction

A Construction Conversion Mortgage is a Mortgage, the proceeds from which are used for the Permanent Financing that replaces the Interim Construction Financing obtained by the Borrower to: Purchase or refinance, as applicable, the land on which the site-built home or Manufactured Home will be constructed or affixed, and construct a new site-built home, or purchase and permanently affix to the site and convert to real property, a new Manufactured Home.

There are two (2) closings: (i) to execute the Interim Construction Financing loan instruments, and (ii) to execute the Permanent Financing loan instruments. A Renovation Mortgage is a Mortgage, the proceeds from which are used for the Permanent Financing that replaces the Interim Construction Financing obtained by the Borrower to purchase or refinance the land and an existing site-built home and to repair, restore, rehabilitate or renovate the site-built home.

• Southern Bank offers construction loans on the branch level and permanent financing of the loans through its mortgage department
• Southern Bank offers major renovation loans on the branch level and permanent financing to pay off the 1st mortgage and renovation loan through its mortgage department
• There is a two time closing on construction to permanent financing
• Appraised value of improvements and land are used to determine the Loan to Value
• Copy of recorded Deed to land required
• Maximum Loan to Value up to 80%
• Current interest rate may be locked 30 days prior to completion

Our Loan Officers will work with you to determine which type of loan best suits your needs and budget. Contact your local branch and ask to speak with a Loan Officer.