Construction Loans

Two construction workers going over the blueprint.

What is a Construction Loan?

A construction loan is a short-term, specialized loan that helps finance the building of a new home or major renovations to an existing property. Unlike a traditional mortgage, which provides a lump sum upfront, a construction loan is disbursed in phases as construction progresses.

Do it your way

Short-term loan

Funding to cover each phase of home construction, released at just the right time.

Competitive rates

Spend more money on your unique design and less on loan interest.

Quick transition

When it's time to move in, your construction loan can easily be transformed into a conventional mortgage.  

Focus on the floorplan. We'll make sure the financing works.

When you're building a home from the ground up, there are plenty of tasks involved - from hiring a contractor to choosing a color scheme. The loan details can seem the most complicated of all. At Paducah Bank, we can assure you that they're not. Our team knows how to tailor a no-hassle construction loan to your specific plans, letting you turn your attention to making sure your new home is truly someplace special.

  • Loans cover labor and material costs
  • Competitive interest rates
  • Low closing costs
  • Funds released at appropriate phase of building project, reducing your interest charges
  • Easy to convert construction loans to permanent financing
  • Expert guidance from experienced Paducah Bank lending team

Get started on your Construction Loan application process with our online mortgage application or find a lender. You can also visit one of our Paducah or Louisville, Kentucky branches.

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Related Resources

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Mortgage Loan Calculator

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