Construction mortgage

Frequently asked questions

• Why choose a construction mortgage?

  This type of loan is perfect for anyone building a new home or renovating a home. It’s the one loan that can take you through the entire construction process and then converts to a permanent loan (your mortgage) when your home is complete and you’re ready to move in.

• What kind of construction-to-permanent loan options are available?

  We offer a range of options that can be customized to fit your specific financing needs. Loans are available in Connecticut, New York, Massachusetts and Rhode Island. A licensed General Contractor is required for all construction loans. PMI may be available for construction loans up to 90% loan to value – please see a Mortgage Banking Officer.

  Fixed rate mortgages are available for both conforming and jumbo loan amounts, with a 15 or 30-year term to choose from. Adjustable rates are available for both conforming and jumbo loan amounts, for a 30-year term.

• What is the maximum conforming mortgage loan amount?

  A conforming mortgage is the mortgage loan limit set by Fannie Mae and Freddie Mac. For single family properties in most counties, the conforming limit is $726,200 and any mortgage loan amount of more than $726,200 is a jumbo mortgage.

• What is a Jumbo mortgage?

  This mortgage is for loan amounts over $726,200 on single family properties. A Webster Mortgage Banking Officer can help you find a flexible lending option for your needs.