New Construction Process, Upstate New York

HomeBuildersNew Construction Process, Upstate New York

You can be confident you have the right financial partner for your upcoming project.

At Upstate National Bank, we have loans that give you the funds necessary to build a new home or commercial property. These loans differ from standard mortgages because they provide financing for the new construction process and are disbursed in stages as the project progresses. We’ve been a fixture in the banking industry since 1922 and want to help you with your new construction.

New Construction Process in Upstate New York

Construction loans are typically short-term loans with an initial term generally lasting a year or less, during which the construction project must be completed. The borrower, often in collaboration with a general contractor, must provide the lender with a detailed construction timeline, plans, and a realistic budget. Based on this information, the lender releases funds at various project phases, usually directly to the contractor.

During the new construction process, borrowers typically make interest payments on the funds drawn for the project. This can ease the financial burden. Funds are disbursed according to a draw schedule based on completed construction milestones. This ensures the project progresses as planned before additional funds are released. Payments are made throughout the new construction process as stages are completed and inspection passes.

One option available to borrowers is a construction-to-permanent loan. This type of loan is designed to finance the construction phase and convert it into a permanent mortgage once construction is completed. This approach offers the convenience of a single set of closing costs and a seamless transition from construction financing to a mortgage. Contact us for more information on our construction loans in Upstate New York or to begin the pre-approval process. We want to partner with you.


At Upstate National Bank, we provide financing for the new construction process in Upstate New York, including Rochester, Syracuse, Buffalo, Ogdensburg, and Philadelphia.