Construction Loans

At Western Ohio Mortgage Corporation, we offer a construction to permanent loan program that provides the convenience of a single closing. During the construction of your home, you make interest only payments on the amounts that you have drawn. You must complete the construction of the home within 12 months. At 12 months or upon completion of the home the loan converts from a construction to a permanent loan and your principal and interest payments begin.

We have a variety of programs including: 3/1 and 5/1 adjustable rate mortgages, 30 year and 15 year fixed rate loan options.

Whether you are building a new home, remodeling or expanding your current home, we can help you finance the home of your dreams.

A few highlights of our construction to permanent home loans:

Easy one-step financing takes care of everything you need, including both the construction and permanent mortgages.
Lower interest only monthly payments during construction
After construction your loan converts to a permanent loan and your principal payments begin.
Available for owner-occupants, second home buyers and investors
Permanent Fixed Rate and Adjustable Rate Mortgages available
One-time closing
Interest reserve payment option available
No prepayment penalty
Loans up to $4,000,000 for owner-occupants

Ohio construction-to-permanent guidance

Build plans need mortgage planning before the first draw

Construction financing is different from a standard purchase because the lender has to understand the land, builder, budget, draw schedule, and permanent loan plan at the same time. Western Ohio Mortgage helps Ohio borrowers compare construction-to-permanent options alongside conventional loans, fixed-rate choices, and a realistic cash-to-close estimate before building begins.

Updated May 2026Western Ohio Mortgage CorporationCompany NMLS #9601

Start with the full project budget

Bring the signed construction contract, plans, specifications, land details, builder information, insurance estimates, taxes, and any change-order assumptions. A complete budget makes the appraisal and approval path clearer.

Plan for draws and timing

During construction, funds are usually released in stages as work is completed. The draw schedule, inspections, interest-only payments, and completion timeline should all be clear before you break ground.

Know the permanent loan path

A one-time close can reduce duplicate closing work, but the permanent payment still needs to fit. Use the mortgage calculators and review closing costs before finalizing plans.

For borrowers building in Sidney, Lima, Troy, Piqua, Bellefontaine, Dayton, or nearby western Ohio communities, the best next step is a practical file review: land status, builder documentation, projected value, down payment, and the permanent mortgage strategy.

Talk through a construction loan

Ohio construction loan planning

Building a home in western Ohio takes more coordination than buying an existing property. The lender has to review the borrower, the land, the builder, the plans, the budget, the appraisal, and the path from construction to permanent financing. Western Ohio Mortgage helps buyers compare whether a one-time-close construction loan, separate construction financing, or another purchase option fits the project.

Before you commit to land, plans, or a builder deposit, it helps to review how the finished home will be valued, how draws will be handled, and what cash will be needed before and during construction. A clear file up front can prevent delays later.

Items to gather early

Builder information, contract details, and proof of insurance or licensing when required.
Plans, specifications, cost breakdowns, and allowance details.
Land purchase terms or documentation for land you already own.
Income, asset, credit, and debt documentation for mortgage underwriting.
A realistic timeline for permits, appraisal, draw inspections, and completion.

Questions to ask before choosing a construction loan

Ask whether the loan will convert to permanent financing, when the interest rate is set, how payments are handled during construction, and what happens if costs or timing change. If you are eligible for VA financing, also review whether a VA construction path is available or whether another structure makes more sense.

For related options, review our VA construction loan article, conventional loan page, and loan calculators.