Land & Home Construction Loans
Are you building your dream home from the ground up? Build Your DreamSM Construction-Permanent Loan combines construction financing and a permanent loan into one. Use our Land Loan to finance vacant land purchases with construction plans within three years.
Purchase a vacant lot in Hawaii to build your dream home tomorrow.
- Three year loan term with minimum monthly payments of interest-only during the three year period. Loan balance due at the end of the three years1.
- 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
- Includes a credit towards construction loan closing costs from ASB for up to one point (1%) times the land loan amount
New home as well as property additions and renovations in Hawaii
- New purchase and refinance
- Monthly interest-only payments during the construction period
- Up to 12 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
NEW TO THE ISLANDS?
Ultimate Newcomer's Guide to Hawaii
American Savings Bank is proud to sponsor Honolulu Magazine's Ultimate Newcomer's Guide to Hawaii, which features a video of ASB teammates sharing what they love about living in Hawaii. There's a lot to see, taste and do here. Let the Newcomer's Guide help point you toward everything you need to make your life in Hawaii the best it can be.
PROGRAMS AND RESOURCES
First Time Home Buyer
Refinancing a Mortgage
Land and Home Construction Loans
U.S. Department of Veteran's Affairs (VA) Loan
U.S. Department of Agriculture (USDA)/Rural Development Loan
Compare All Mortgage Loans
Home Equity Line of Credit
APR stands for “Annual Percentage Rate” and represents the price you pay to borrow money. APR is a broader measure than interest rate because it includes the interest rate plus other costs such as lender fees, closing costs and insurance. You can use APR to compare loans offered by different lenders when shopping for a mortgage loan.
For example, based on a purchase price of $500,000; loan amount of $400,000 (20% down payment; 80% loan-to-value); interest rate of 4.00% and 1.00% points, the monthly principal and interest payment on a 30-year fixed rate mortgage would be $1,909.66 and an APR of 4.119%. Keep in mind your mortgage loan monthly payment will be higher as lenders typically include proerpty tax and insurance costs.
Getting pre-qualified is highly recommended since many sellers require a pre-qualification letter from a reputable lender. Plus, during the pre-qualification process your ASB Loan Officer will help you determine the appropriate price range before you go house hunting.
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.
Jumbo loans are any loans over $765,600. Conforming loans are any loans under $765,600 and are subject to loan amount limits that are periodically set by Frannie Mac® and Freddie Mac®.
- The Vacant Lot Loan from American Savings Bank is a 3-year fixed rate loan with fixed monthly interest-only payments and a final balloon payment. Points and fees vary and are subject to change. Credit of up to one (1) point paid to American Savings Bank on Vacant Lot Loan upon refinancing with a construction/permanent loan with American Savings Bank subject to the following conditions: Application for construction/permanent loan must be made within loan term; credit is applied to a mortgage loan for the purpose of constructing a home on the lot; and credit is not transferable to another party or property. The maximum loan-to-value (LTV) for loan amounts up to $765,600 is 75% (25% down payment), and the maximum LTV for loan amounts up to $1,000,000 is 65% (35% down payment). For more details contact an American Savings Bank residential loan officer. Payment example: Based on a $262,500 loan (sale price $350,000 with a 25% down payment and prepaid finance charge of $3,937.50): the monthly interest-only payment (based on an interest rate of 5.500% and 0.0 points (6.048% APR) is $1,203.13 and one final balloon payment of $263,703.13. Rates and terms are effective as of 12/19/2019 and are subject to change without notice. Certain terms and restrictions apply
Loan programs and products are subject to loan qualification, credit policy and underwriting standards for the respective program or product. Certain terms, conditions and restrictions may apply. Programs/products subject to change or discontinuation without notice.
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.