More About Land & Home Construction Loans
A vacant land loan (or lot loan) is a specialized financing option used to purchase unimproved land with plans to build a home. Apply for one today to build your dream home in Hawaii.
- Fixed interest rate during the term
- No prepayment penalty
- Available for land purchase with land loan to be paid off and construction to commence within three years
- Credit of up to one point paid on the land loan upon the Construction refinance
A construction loan is a short-term loan that funds the building or major renovation of a home, providing money in stages (draws) as work progresses, covering costs like labor, materials, and permits, then converting into a traditional mortgage once complete.
- Build Your DreamSM Construction-Permanent Loan combines construction financing and a permanent loan into one.
- New home as well as property additions and renovations in Hawaii
- New purchase and refinance
- Interest-only payments during the construction period
- Up to 18 months for the construction phase
- Fixed rate term after construction
- One-time option to take advantage of lower rates for the permanent loan if fixed interest rates are lower when construction is completed
- Find out more about What You Need to Know... with Construction Loans
- The construction lending process begins with submitting your application and supporting credit documentation. Additionally, provide your construction contract from a licensed general contractor, plans, specifications, building permit and bond.
- Your loan officer will review the information and discuss the construction related information needed including the construction contract, plans and specifications, building permit and bond.
- If approved for a vacant land and construction loan, we'll schedule your loan closing, then fund your loan to begin construction.
- Next in the construction loan process, we’ll perform inspections to confirm construction is progressing as planned.
- Upon confirmation of completion, we’ll roll your construction loan into a permanent mortgage.
For a limited time, receive one-half (0.50%) point off
your loan origination points!2
On Construction & Vacant Land Purchase Loan applications received prior to 12/31/2026.
One-half point equates to $2,000 off a $400,000 loan.
Apply now > to start saving or contact a home loan officer > to learn more.
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American Savings Bank is a Leader in Affordable Housing
We’re committed to making housing more affordable and empowering kamaaina to achieve their dream of homeownership.
Common Questions:
Getting pre-qualified before applying for a mortgage is helpful. Knowing how much of a home you can afford will also help in the house hunting process.
There are a few items you must consider before applying for a mortgage loan. We recommend that you have a good understanding of how much you want to borrow, what your credit score is, and that your financial information is readily available.
We typically ask for two years of W-2s and tax returns as well as other documents to verify the information that you provide to us. Every applicant is different, so please contact a loan officer to discuss your situation.
- Subject to loan approval. Certain terms, conditions, and restrictions may apply.
- Offer valid for complete loan application submitted through 12/31/2026 and funded by 2/28/2027 and subject to change without notice. The loan discount is applicable for construction and vacant lot purchase loans financed by American Savings Bank (ASB). Not applicable for brokered out loans or Veterans Affairs Loans. Land Loan Discount requires enrollment in automatic monthly payments from a new or existing ASB personal checking account prior to loan closing. Otherwise, ASB will be required to re-disclose the non-promotional rate and fees, which may result in delayed closing. See ASB Personal Deposit Account Terms and Conditions for more information. This offer cannot be combined with any other promotional discounts, long-term rate lock specials, or new project financing rates unless otherwise noted. Eligible for Hawaii properties only, owner-occupied, single-family dwellings and condos.
Fannie Mae® is a registered trademark of the Federal National Mortgage Association. Freddie Mac® is a registered trademark of the Federal Home Loan Mortgage Corporation.