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CORPORATE OFFICE

Level One Bank

32991 Hamilton Ct.
Farmington Hills, MI 48334
Phone: 248-737-0300

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MORTGAGE LOAN CENTER

Level One Bank

1328 S Main Street
Ann Arbor, MI 48104
Phone: 734-213-1515

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BANKING CENTERS

ANN ARBOR

Level One Bank

195 N. Maple Road
Ann Arbor, MI 48103
Phone: 734-794-5225

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ANN ARBOR

Level One Bank

125 W William St.
Ann Arbor, MI 48104
Phone: 734-761-1475

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ANN ARBOR

Level One Bank

3930 South State St
Ann Arbor, MI 48108
Phone: 734-418-9995

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BIRMINGHAM

Level One Bank

1712 West Maple Road
Birmingham, MI 48009
Phone: 248-723-4800

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BLOOMFIELD

Level One Bank

6450 Telegraph Road
Bloomfield Hills, MI 48301
Phone: 248-406-8905

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BLOOMFIELD

Level One Bank

37100 Woodward Avenue
Bloomfield Hills, MI 48304
Phone: 248-530-7401

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DETROIT

Level One Bank

1420 Washington Boulevard
Detroit, MI 48226
Phone: 313-309-9980

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FARMINGTON HILLS

Level One Bank

30095 Northwestern Highway
Farmington Hills, MI 48334
Phone: 248-865-1300

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FARMINGTON HILLS

Level One Bank

30201 Orchard Lake Road
Farmington Hills, MI 48334
Phone: 248-737-1110

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FERNDALE

Level One Bank

22635 Woodward Avenue
Ferndale, MI 48220
Phone: 248-414-6500

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Grand Rapids

Level One Bank

2355 Burton St. SE
Grand Rapids, MI 49506
Phone: 616-827-4400

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JACKSON

Level One Bank

611 N Wisner
Jackson, MI 49202
Phone: 517-917-0908

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NORTHVILLE

Level One Bank

20550 Haggerty Road
Northville, MI 48167
Phone: 248-380-6590

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NOVI

Level One Bank

44350 W. 12 Mile Road
Novi, MI 48377
Phone: 248-735-1000

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Rochester Hills

Level One Bank

1880 S. Rochester Road
Rochester Hills, MI 48307
Phone: 248-710-3700

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STERLING HEIGHTS

Level One Bank

43683 Schoenherr Road
Sterling Heights, MI 48313
Phone: 586-412-1800

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Read Our Blog Articles

Are You Thinking About Building A New Home

Posted on: September 18, 2020

What Our Michigan Bank Wants You to Know About Construction Loans

Happy young parents with child A July report from realtor.com shows a 25 percent decrease in the Detroit area housing inventory compared to last year, steeper than the Midwest’s 21 percent drop. The availability of homes for purchase was already tight before the pandemic, especially for first-time buyers. Although the report cites that some sellers are more comfortable listing their homes, many remain cautious with concerns about COVID-19 and economic uncertainties.



If you’re ready to become a homeowner or want to upsize or downsize, it may be the right time to consider a custom-built house.

Why Build Rather than Buy Your New Home

Building a new house offers several advantages to home buyers:

  • Designed for You. Homebuilders in Michigan (and across the US) offer hundreds of floor plans that they will customize to meet your needs, or you may want to partner with an architect to create a unique design.
  • Sustainable, Safe Building Materials. Building codes for new construction require material to guarantee a healthy and safe living space for you and your family. Fixtures like toilets, faucets, and lighting focus on sustainability, so you have a home that's also better for the environment.
  • Energy Efficiency, Lower Maintenance Costs. With insulated windows, energy-efficient appliances, and high-efficiency heating and cooling, your custom-built home provides comfort to your family (and your wallet).

After you contract with a licensed builder, it’s time to secure a construction loan from a financial institution, such as Level One Bank, to finance building costs. Level One Bank has locations in Ann Arbor, Detroit, Grand Rapids, and all throughout Southeast Michigan that can help.

How Construction Loans Work

Construction loans differ from personal loans or traditional mortgages in the following ways:

  • Construction-to-Permanent Financing – Construction loans include financing for your build project with a short-term loan initially (usually 12 -18 months). Once the home is complete, most banks will convert your construction loan to a traditional mortgage without having to go through another closing process. This means you will only have to pay for one set of closing costs.
  • Construction Draws – Banks will disburse funds from your construction loan in the form of “draws” as progress is made on your home. These draws are funds used to pay your Builder and their subcontractors and suppliers.
  • The Interest Rate on your construction loan is typically comparable to traditional mortgage rates.
  • Interest-Only Payments during construction are due monthly. They are calculated on the outstanding balance of your construction loan. As more funds are used, your payment will increase.
  • Detailed Plans Upfront – To ensure your build plan is reasonable, banks will ask for project plans and specifications along with a contract between you and your Builder.
  • Down Payment – Some banks will ask for a down payment equal to 10-25 percent of your construction loan to offset the risk of financing a home-build. Check with your bank to find out more about their lending terms.

Closeup of man hand holding boxIf you don’t already own the land where you’ll build your new house, be sure to include the purchase cost in your acquisition costs and discuss this with your loan officer.

Michigan Banks have teams to support your financing needs as your new home is built and after you move in. At Level One Bank, we have a competitive Construction Loan Program  with expert loan officers to help you through the process. Contact us to learn more!


“Building your own home is about fantasy, desire. But it’s achievable; anyone can do it.”

Kevin McCloud, TV property guru

Posted in: Your Home, Your Life

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