Loans to fund your construction.

Are you thinking of building a new home in southeast New Mexico? We have a variety of New Mexico home construction loans available for most credit and income situations. We make local decisions and have greater flexibility on quick loan decisions. A construction loan is a short-term (usually about a year) used to fund the construction of your home, from breaking ground to moving in. With a Pioneer Bank construction loan, your construction financing would refinance to a permanent mortgage when your home is complete. During construction, you only pay the interest on your loan, and your payments may be tax-deductible¹. For construction loan rates, please consult your local lender below.

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Benefits

Affordable, interest-only payments during construction
No prepayment penalties

Best if you

Want to build your primary or vacation residence, or make significant renovations to your existing home.
Need to buy the lot and finance the construction
Would like the option to prepay without penalty

What should I consider before building a new home?

Building a home doesn’t have to be overwhelming. Knowing what to expect will help simplify the process.

What happens during construction?

Your builder will have scheduled draw payments for completed work
You will have periodic inspections of the home as it is being built

What's your budget?

To know your budget, you should contact a lender below about construction loans. Together you can determine how much you will be able to spend.

Keep your household budget in mind, too. You may not want to borrow as much as we can offer, you will need room for other monthly expenses after you move in.

Where do you want to build your home?

When you’re choosing a lot, look into its zoning. Local ordinances can affect the type of home you can build, where you can build it, whether you can have additional structures, and more.

If you already own your lot, good news: You can use it as equity when you set up your financing.

Who is your builder?

You’ll need a licensed builder to get a construction loan. Be sure to verify their licenses, check references and speak with them about your plans. By vetting the builder, you’ll increase your comfort level and decrease your exposure to legal complications.

Incidentally, Pioneer Bank requires homeowners insurance that includes builder’s risk coverage. This helps protect you while your home is being built.

When can you move in?

After the final inspection, you will receive your certificate of occupancy. Then you are all set to move in – and since the home is complete, your loan will be refinanced to a permanent mortgage.