Build Your Dream Home
If you've been looking for a house lately, you know the market is tough for buyers. Houses are selling fast! When finding a great deal on a great house feels impossible, why not build your own? Learn how easy a new construction loan can be with Plains Commerce Bank.
Simple. Transparent. Consistent.
Origination fee credited back when you refinance your construction loan with Plains Commerce Bank*
Loans that cover up to 80% of project cost (including land)**
Dedicated PCB lender for each project
Our Mortgage Bankers will work with you from start to finish. With a construction loan, you’ll pay interest only on the money you have borrowed to date as you move through the building process.
Home Construction Loan Process
Get prequalified for the permanent financing with one of our fantastic mortgage bankers.
You'll provide us with the building plans and specs for your new home. (Your general contractor can help with these.)
Our team will provide you with a construction loan estimate and order an “as-complete” appraisal.
Once your request is approved, we will close on the loan. Let the building begin!
Find a Local Lender
Skyler BlochGet to Know Me
Sioux Falls, SD
Stephen PeschongGet to Know Me
Sioux Falls, SD
Construction Loan FAQs
Why should I choose PCB for my new construction loan?
Two reasons. First, we're the local experts. Our team understands every stage of the loan process—and we don't expect you to. We'll walk you through every step, answer any questions, and give you a friendly high-five at the end.
Second, because we're the local experts, we've simplified the loan process so it's as easy as possible for you. And who doesn't like simplified?
Can I increase my chances of obtaining a new construction loan?
Yes! If you have good credit and enough funds to cover your equity requirement for the project, you’re in good shape. This is what the bank typically likes to see.
What’s the difference between a mortgage and a new construction loan?
To build a new home, Plains Commerce Bank requires borrowers to take out two loans—(1) a construction loan and (2) permanent financing (a mortgage) when the home is complete. Once the bank knows the home construction is complete, they will request either a final inspection or a new appraisal depending on the time frame of the original appraisal. This is to verify that everything is complete per the original plans and specifications. The permanent financing is then put in place and the construction loan is paid in full.
What are the current interest rates for construction loans?
As of October 2021, our construction loan interest rates start at 4.25% with an APR of 6.487%*. The borrower is only required to pay interest monthly on the funds that have been disbursed from the construction loan.
Every construction loan is different. Typically, the general contractor determines how he or she wants to get paid—meaning whether the loan is disbursed in stages or as a lump sum.
Do new construction loans have any restrictions?
Plains Commerce Bank typically sets up a construction loan for 12 months; however, it is preferred that the build be complete in 4-6 months, which is generally enough time to complete the home. Additionally, the bank will require you to work with an experienced and qualified general contractor on the project.
**All credit and loan products are subject to credit approval.
Please call 877-212-8787 for loan estimates.