Loans to fund your construction.

A construction loan is a short-term (usually about a year) used to fund the construction of your home, from breaking ground to moving in.  With a Pioneer Bank construction loan, your construction financing would refinance to a permanent mortgage when your home is complete.  During construction, you only pay the interest on your loan, and your payments may be tax-deductible1.  For construction loan rates, please consult your local lender below.

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Building a home doesn’t have to be overwhelming.  Knowing what to expect will help simplify the process.

  • Your builder will have scheduled draw payments for completed work
  • You will have periodic inspections of the home as it is being built

To know your budget, you should contact a lender below about construction loans.  Together you can determine how much you will be able to spend.

Keep your household budget in mind, too.  You may not want to borrow as much as we can offer, you will need room for other monthly expenses after you move in.

When you’re choosing a lot, look into its zoning. Local ordinances can affect the type of home you can build, where you can build it, whether you can have additional structures, and more.

If you already own your lot, good news: You can use it as equity when you set up your financing.

You’ll need a licensed builder to get a construction loan. Be sure to verify their licenses, check references and speak with them about your plans. By vetting the builder, you’ll increase your comfort level and decrease your exposure to legal complications.

Incidentally, Pioneer Bank requires homeowners insurance that includes builder’s risk coverage. This helps protect you while your home is being built.

After the final inspection, you will receive your certificate of occupancy.  Then you are all set to move in – and since the home is complete, you loan will be refinanced to a permanent mortgage.

Contact one of our professional, qualified lenders to help your business grow.

Nicole Austin
Nicole AustinExecutive Vice President/Chief Lending Officer
Chaves County
575-627-4414
NMLS #591583
Alma Salas
Alma SalasVice President/Lending Officer
Chaves County
575-624-5244
NMLS #591612
Kiel Hoffman
Kiel HoffmanMarket President/Lending Officer
Doña Ana & Otero Counties
575-532-7520
NMLS #591598
Darro Pannell
Darro PannellRegional Vice President/Commercial Lender
Lincoln & Otero Counties
575-439-6050
NMLS #1871317
Donna Kaler-Ward
Donna Kaler-WardAssistant Vice President/Lending Officer
Lincoln County
575-258-6501
Ericka Laney
Ericka LaneyLending Officer
Eddy County
575-885-7460