Construction Mortgage

When you’re building a brand new home or making major renovations, your financing needs go beyond a simple mortgage. Our bankers will work with you to find a construction-to-permanent loan that takes every phase of your project into consideration, all wrapped into one loan and one closing.

Streamline your lending needs with a
Construction-to-Permanent Loan

This versatile loan is a great choice if you're:

  • Building a home from the ground up
  • Making renovations
  • Working with a general contractor
  • Buying land first (or already own land)


A Webster Mortgage Banking Officer is here to help you choose one of four financing solutions1:

  • Purchase/Construction: The loan will cover the purchase of your property and the cost of construction.
  • Purchase/Home Improvement: The loan will cover the purchase of an existing home and any renovations you'd like to make.
  • Refinance/Construction: If you own the land you’re building on, the loan can be used to pay off your land loan or existing construction loan, as well as cover construction costs.
  • Refinance/Home Improvement: If you own the property, this loan will pay off any existing mortgages on the home, as well as finance any renovations you’d like to make.


To learn more about Construction Mortgages, find a mortgage banking officer near you, or visit your nearest Webster banking center.


  •   Why choose a construction mortgage?

    This type of loan is perfect for anyone building a new home or renovating a home. It’s the one loan that can take you through the entire construction process and then converts to a permanent loan (your mortgage) when your home is complete and you’re ready to move in.

  •   What kind of construction-to-permanent loan options are available?

    We offer a range of options that can be customized to fit your specific financing needs. Loans are available in Connecticut, New York, Massachusetts and Rhode Island. A General Contractor is required for all Loan-to-Value (LTV) over 80% and you may be eligible for a maximum LTV of up to 90% with PMI.

    Fixed rate mortgages are available for both conforming and jumbo loan amounts, with a 15 or 30-year term to choose from. Adjustable rates are available for both conforming and jumbo loan amounts, for a 30-year term.

  •   What is the maximum conforming mortgage loan amount?

    A conforming mortgage is the mortgage loan limit set by Fannie Mae and Freddie Mac. For single family properties in most counties, the conforming limit is $510,400 and any mortgage loan amount of more than $510,400 is a jumbo mortgage.

  •   What is a Jumbo Mortgage?

    This mortgage is for loan amounts over $510,4001 on single family properties. A Webster Mortgage Banking Officer can help you find a flexible lending option for your needs.

  1. All loans subject to credit approval. Contact a Webster mortgage banking officer for full details of program. Program is subject to change without notice and may be withdrawn at any time.