Construction Loans Farmers State Bank

Breaking ground on a new home is exciting and a big financial step. At Farmers State Bank, we’ve been helping families in Southern & Eastern Colorado, including Calhan, Ellicott, Falcon, Kiowa, Colorado Springs, Pueblo, and the Front Range, turn their building plans into reality for over 100 years. Our Colorado construction loans are designed to give you competitive rates, straightforward terms, and the confidence of working with a local lender that understands your community.

What Is a Construction Loan?

A construction loan is short-term financing that covers the cost of building your home from the ground up. Unlike a traditional mortgage, construction loans are paid out in stages (known as “draws”) as work is completed. Once construction is finished, your loan can then be converted into long-term financing such as a traditional mortgage.

With Farmers State Bank, you get more than funding; you get the personal support of experienced loan officers who know the ins and outs of building in Colorado.

Benefits of an FSB Construction Loan

Competitive fixed interest rates for affordable financing.
Finance up to 80% of the as-completed appraisal or 90% of the hard costs.
Work directly with your loan officer to submit draw requests.
12-month term with interest-only payments during construction.
Loan fees and closing costs can be financed into the loan.
Maximum 45% debt-to-income ratio to qualify.
Local underwriting, processing, and decision-making for a faster, smoother process.

Popular Uses for Construction Loans

A construction loan can help you:

Build your primary residence from the ground up.
Finance the construction of a vacation or second home in Colorado.
Purchase land and build a home in one combined package.
Upgrade or rebuild an existing property with major construction needs.

The Loan Officers at Farmers State Bank

Employee Name	NMLS ID	Work Location	Contact
Lindsey Lawson - Preisser	873899	1500 8th St Calhan CO 80808
Scott Lutz	543634	1500 8th St Calhan CO 80808
Leo Prosser	2534634	1500 8th St Calhan CO 80808	Email: lprosser@yourfsb.com Phone: (719) 347-2727
Sara Strouse	2062662	434 Comanche St. Kiowa, CO 80117
Bret Swennes	554092	7025 Old Meridian Rd Falcon CO 80831
April Drew	2569373	445 N. Ellicott Hwy Calhan, CO 80808

Getting Started

To apply for a construction loan, you’ll need to provide:

A recent paystub
The last 2 years of W2 Statements or 2 year of tax returns if self-employed
Plans and cost estimates (if available)

Download a Printable Application (PDF)

Or stop by your nearest branch in Calhan, Ellicott, Falcon, or Kiowa to meet with a loan officer in person.

Construction Loan FAQs

How is a construction loan different from a mortgage?

A mortgage provides long-term financing for a completed home, while a construction loan is short-term financing that covers the building process.

Can I use a construction loan to buy land and build?

Yes. Farmers State Bank offers combined financing to purchase land and fund construction in one loan.

Do I make payments during construction?

Yes, but you’ll typically only pay interest on the funds disbursed until the project is completed.

What happens when construction is finished?

Once your home is complete, your loan will need to be refinanced into long-term financing such as a traditional mortgage.

Why should I choose a local lender?

Farmers State Bank understand Colorado’s unique housing market, seasonal challenges, and property values. We’ve worked with many of the local general contractors and manufactured home dealers which allows us to provide better guidance and local experience.

Why Choose Farmers State Bank?

For over a century, Farmers State Bank has been part of Colorado’s growth. As a fourth-generation, family-owned community bank with branches in Calhan, Falcon, Ellicott, and Kiowa, we know that building a home is more than a financial transaction – it’s building your future. That’s why we provide straightforward construction financing, personalized service, and local decision-making to help you every step of the way.

With a construction loan from FSB, you’re not just funding a house – you’re laying the foundation for the life you’ve always dreamed of.

Construction Loans in Colorado