Your Home, Your Way
Whether you're starting from the ground floor or are customizing an existing layout, Citizens First Bank is here to help you bring your vision to life — from blueprint to move-in day. Our construction loans offer flexible financing, competitive rates, and expert guidance. Ready to get started on the home of your dreams? Speak with a loan officer today at our Holmen, Sparta, Trempealeau, or Viroqua locations, or call to make an appointment with a lender at any of our six convenient locations.
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What Is a Construction Loan?
A construction loan is a short-term financing solution that supports your home-building project from start to finish. Your funds are released in stages, called draws, to coincide with the timeline of your build, helping you manage costs and stay on track.
Most construction loans feature interest-only payments during the building phase. Once your home is complete, you’ll apply for a long-term mortgage based on updated financial documentation and credit qualifications.
All loans are subject to credit approval. Terms and conditions apply.
Why Choose Our Construction Loans?
Tailored Financing - Designed specifically for custom home builds, our loans offer terms that fit your project and your budget.
Competitive Rates - Keep your build affordable with interest rates that work for you.
Expert Support - Our lending team is with you every step of the way, ensuring a smooth process and a seamless transition to a long-term mortgage when construction is complete.
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Limited-Time Offer
Building a home is a major investment — and the right financing can make all the difference. For a limited time, get yourself locked into our 9-month construction loan with:
- Annual Percentage Rate: 2.049%*
- Interest Rate: 1.49%
This offer is designed to provide you with financial flexibility while you build. Apply today and start your project with confidence!
*Annual Percentage Rate based on a 9-month loan of $500,000 with interest-only payments and a balloon payment due at maturity. Rates subject to change based on market conditions and credit approval. Contact a loan specialist for current terms.
How it Works
- Apply for financing
- Secure loan approval
- Begin building
- Transition to a mortgage
Common Questions About Construction Loans
Loan Process and Structure
How does a construction loan work for custom home building?
A construction loan is a short-term financing solution designed to support custom home projects. Funds are released in phases (draws) as construction progresses, covering key milestones to ensure financial stability. Most construction loans feature interest-only payments during the build. Upon completion, the loan transitions into a fixed-rate mortgage, requiring a separate mortgage application and updated financial documentation to finalize refinancing.
What types of construction loans are available?
Citizens First Bank offers construction-only loans, which provide short-term financing for the building process. These loans release funds in phases (draws) as construction progresses, ensuring financial stability at key milestones. Once the home is completed, borrowers must apply for a separate mortgage to transition into long-term financing, with updated financial documentation required for approval. All loans are subject to credit approval. Terms and conditions apply.
How are funds disbursed?
Funds are released in stages (draws) based on project milestones like foundation completion or framing.
What is the down payment requirement?
Down payment requirements vary based on loan structure, property type, and financial qualifications. Speak with a loan specialist to determine eligibility and required payment amounts.
What are my monthly payments during construction?
Usually interest-only payments until construction is complete.
Eligibility Requirements
Do I need a detailed project plan?
Yes! Lenders require blueprints, budgets, and timelines to approve financing.
What happens if my project takes longer than expected?
If construction takes longer than expected, borrowers may need to apply for an extension or refinancing, which is subject to updated financial review, credit approval, and potential fees.
Disclaimer:
*Annual Percentage Rate and monthly interest only payment is based on one-half of the loan amount being borrowed at the loan interest rate for the entire term of the loan. The payment example is based upon 9 monthly interest only payments of $320.76 with a balloon payment for the outstanding balance and interest due at maturity (or refinanced into permanent financing). It does not include principal, property taxes, and insurance premiums. Actual payment obligation may be greater.
Rates are effective as of 12/09/2025 and are based off of a 60-day rate lock period. All loans are subject to approval. Rates, terms, and conditions are subject to change at any time without notice.
Loan scenario assumes an owner occupied, single family residence construction with a loan amount of $500,000, 20% down payment, and 9-month term. A construction loan is a short-term loan that covers only the costs of custom home construction. Once construction is complete, borrowers must apply separately for permanent mortgage financing and provide updated financial documentation.
Important Notes:
Interest rates, loan terms, and availability may change. Speak with a loan specialist to confirm current offerings.
- Down payment requirements vary based on financing options selected at the end of the construction process.
- The construction loan does not automatically convert to a fixed-rate mortgage — borrowers must apply separately for long-term financing, providing updated financial documentation at the time of transition.
- Extensions or refinancing may be required if the construction timeline exceeds the loan term, which may result in additional fees.