Construction Programs

By offering "One Stop Shopping" as well as greatly simplifying the construction lending process, it's no wonder that a HUGE majority of Paramount Construction customers choose Sandy Spring to help them finance their custom home!

The Most Popular Construction Loan Program:

Blanket Construction Loan:

The Blanket Construction Loan program allows a customer the flexibility of financing up to 100% of the cost to build a custom home. The construction loan is secured by both the existing home, and the home under construction.

• The equity in the existing home is used in place of a traditional cash down payment on the home being built.
• As the new home nears completion the existing home is sold
• The proceeds from the sale are used to pay down the construction loan so it can be modified into the permenant loan.
• Interest on the construction loan is based on WSJ Prime
• The permanent loan can either be a fixed or adjustable rate.
• A number of extended rate lock programs are available
• One-time close feature reduces closing costs.

Blanket Example:

Sales Price of New Home:		$750,000
Existing Home Value:	$400,000
Exisiting Mortgage:	$200,000
Existing Equity:	$200,000
Blanket Construction Loan:		$750,000
Down Payment Required for Construction:		$0
Minus Equity from Sale of Existing Home:		$200,000
Permanent Loan Amount:		$550,000