Land and Construction Loans at Partners Bank

Whether you're purchasing land now and planning to build later, or you're ready to break ground today, Partners Bank offers land loans and single-closing construction loans for borrowers across Maine, New Hampshire, and select Massachusetts counties. Both products are held in-house, serviced locally, and carry no prepayment penalty.

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Get Started with a Land or Construction Loan at Partners Bank

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LAND LOANS

Land Loans at Partners Bank

A land loan lets you purchase or refinance vacant land now, without committing to build immediately. Partners Bank finances improved, partially improved, and raw land, with no acreage maximum and no prepayment penalty.

Fixed rate

Fixed rate for the life of the loan.

15-year term

15-year loan term.

Up to 75% LTV on buildable lots

Up to 75% loan to value for buildable/approved lots.

Up to 65% LTV on raw land

Up to 65% loan to value for raw land.

No acreage maximum

No acreage maximum.

No prepayment penalty

No prepayment penalty.

Purchase or refinance

Available for purchase or refinance.

Cash-out refinance

Cash-out refinance available on land you already own.

Land equity rolls forward

Land equity can be rolled into a future Partners Bank construction loan.

ME, NH, and select MA counties

Available in Maine, New Hampshire, and select Massachusetts counties (Essex, Middlesex, Suffolk, and Worcester).

HOW IT WORKS

How the Partners Bank Construction Loan Works

If you're ready to build, Partners Bank's single-closing construction loan takes you from groundbreaking to move-in without a second closing. You pay interest only on funds disbursed during construction, and the loan converts automatically to permanent financing at the end of the construction period.

Single closing

Single closing, meaning no second closing at conversion.

Interest-only during build

Interest-only payments during construction phase.

Staged disbursements

Funds disbursed in stages as work is completed.

12-month conversion

Converts to permanent mortgage after 12-month construction period.

Fixed or adjustable end terms

Both fixed rate and adjustable rate end terms available.

Multiple property types

Available for primary residences, second homes, and seasonal properties.

Land included

Land can be purchased as part of the loan.

No prepayment penalty

No prepayment penalty.

ME, NH, and select MA counties

Available for properties in Maine, New Hampshire, and select Massachusetts counties (Essex, Middlesex, Suffolk, and Worcester).

THE PROCESS

The Construction Loan Process

Construction financing works differently from a standard mortgage, and understanding the timeline helps set expectations.

During the construction phase (up to 12 months) funds are released in stages rather than all at once. Before each disbursement, a construction management company completes an on-site inspection to confirm the work is finished. You pay interest only on the amount that has been disbursed, not the full loan amount.

At the 12-month mark, the loan automatically converts to principal and interest repayment for the full loan term, whether construction is complete or not. If the project wraps up early and you're ready to convert sooner, that's possible once the home is 100% complete. Any remaining construction funds at that point can be applied to the principal or returned to you.

Upon conversion, borrowers may elect to pay a $1,000 modification fee to take advantage of falling rates, if applicable to portfolio end products.

Contact a Mortgage Consultant

QUESTIONS

Frequently Asked Questions

A land loan finances the purchase or refinance of vacant land, with the land itself serving as collateral. Partners Bank finances improved, partially improved, and raw land, with no acreage restrictions and no prepayment penalty.

For buildable lots, Partners Bank typically requires 25% down. For raw land, the requirement is 35% down.

Yes. If you move forward with a Partners Bank construction loan, the land equity can be rolled in.

Yes. You can refinance land you already own to take cash out or lower your rate on an existing land loan with another lender.

No. As long as the town can confirm the land meets its zoning and setback requirements to be considered a buildable lot, that's sufficient.

No. The property must be vacant land with no structures. Barns, garages, mobile homes, warehouses, and cabins are not eligible. If there's a structure on the property, it would need to be removed prior to closing, or another Partners Bank loan program may apply.

A construction loan finances the building of a home, with funds released in stages as construction progresses. Partners Bank's construction loan is a single-closing product that converts to a permanent mortgage once the construction period ends. No second closing is required.

No. If you already own the land, it can factor into the loan. If you don't, land can be purchased as part of the construction loan.

The loan automatically converts to full principal and interest payments at the 12-month mark regardless of whether construction is complete. Remaining construction funds are placed into a holdback account and disbursed in the same manner as during the construction period.

Disbursements are based on work completed, confirmed by an inspection from Partners Bank's construction management company. This protects both the borrower and the bank by ensuring funds are used appropriately. Most builders are familiar with this process.

Both fixed rate and adjustable rate options are available for the permanent end loan. Contact a Partners mortgage consultant for current rate information.

No. There is no prepayment penalty on the construction loan.

Once construction is fully disbursed, the final Certificate of Occupancy is received, and construction management gives final approval, any excess funds can be applied to the principal of the loan or returned to the borrower.

A fixed-price contract is recommended, as it reduces risk and keeps costs more predictable throughout the build.