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Whether you are constructing a new home or renovating an existing property, BNY Mellon Wealth Management’s construction financing offers convenience and flexibility.

Our program requires only one closing and provides the ability to lock into the loan product and rate at the beginning of the process.


Client Advantages


  • Convenience of a single loan closing
  • Ability to lock in rates and terms prior to construction

•  Take advantage of current rates
•  Avoid risk of potential rate increases

  • Competitive selection of adjustable-rate and fixed-rate mortgage programs
  • Interest-only payments for the first 10 years
  • Full control over disbursements to pay contractors, allowing flexibility to cover any alterations during construction1
  • No site inspections required by the Bank
  • Ability to borrow against eligible investment portfolios rather than liquidating securities

•  Keeps investment strategy intact
•  Helps to avoid possible capital gains tax

  • Opportunity to pledge additional securities for 100% financing of the real estate to maximize potential tax benefits


General Guidelines


  • Construction-to-permanent loans

•  $500,000 minimum loan amount
•  Owner-occupied primary or secondary residences, nationwide
•  18 to 24 months to complete construction or renovation
•  Pledge of cash or marketable securities required during construction period

  • Appraisal required at time of application

•  “Subject to completion” value based on plans and specifications
•  Land value in the case of new construction
•  “As is” value in the case of renovations

  • Appraisal required following completion of construction

•  Updated “as is” value based upon finished home

1Some restrictions may apply in certain states, including Texas.


BNY Mellon does not provide tax advice. Clients should consult their tax advisor to properly evaluate circumstances Mortgage services, provided by BNY Mellon, N.A., are subject to application and credit approval.


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