At Alaska Pacific Bank we’ve been financing the construction of new homes since 1935. Our team of experienced construction lenders can effectively guide you through the building process as it relates to your financing. We can also help you with the financing of your lot.

Residential Construction Loan

With this loan you are assured of getting one of the lowest rates and most competitive fees available during the construction phase of your home purchase.

How it Works

A line of credit is established based on project costs that will be disbursed to cover construction expenses as the work progresses. The term of the loan varies, depending on whether you are a contractor or owner-builder. Please call us for current loan rates and fees.

There are several draw schedules (a pre-determined progression of how construction funds will be paid out) to choose from. Or, we can work with you and your builder to customize a draw schedule for your specific project. Whatever works best for you! This construction loan is paid off by your pre-approved long-term Mortgage Loan. (Check out the Mortgage Loan section of our web site for more information.)

For More Information

If you would like to learn more about the benefits of getting your Construction Loan through Alaska Pacific Bank, please call and ask for a Loan Officer, or stop by one of our banking offices. Contact Us.

Lot Loans

In many instances, you can finance the purchase of your lot as part of an Alaska Pacific Bank construction loan. There may be times, however, when you may want to secure your lot right away, knowing that at some time in the future you intend to build your home. A Lot Loan enables you to purchase your land while you finalize your construction plans. We have several loan programs to choose from:

24-month Interest-only Option

Under this option, you only make interest payments for up to two years. This option is the most attractive if you are certain that you will build your home within two years of the land's purchase. This loan gets you the lowest monthly payment possible during the interim period between land purchase and the start of construction.

15-year Amortization with a Five-year Balloon Payment Option

With this option, the loan is amortized over 15 years, and you will have a balloon payment at the end of five years. This option is best if you plan to build your residence within five years of the land purchase.  (If building within two years, see the 24-month Interest-only Option.) The 15-year term creates a low monthly payment, and because the payment includes both principal and interest, you are building equity in your property as you go.

Standard Amortizing Loan Option

Under this program, you can finance your lot for up to 12 years, with regular principal and interest payments. This option is best if you are not sure exactly when you will build, but have found the lot you eventually want to build on. The longer term of 12 years makes for a manageable payment, and you will be building equity along the way.

All Lot Loans

All lot loan options require a down payment, but remember that the money you pay on your land loan will be credited towards the down payment requirement of your construction and home mortgage loan. Loan fees are based on the loan amount. Call us for details.

Apply for Your Lot Loan, Online.