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Residential Construction
Our residential construction loans are designed to provide you with convenience during construction phase and into the permanent financing phase. During construction, your payments are for interest only. We can provide for construction financing alone as well as flexible options with a wide variety of product and rate lock options, fixed and adjustable, for the permanent financing.


You should consider a Construction/Permanent Mortgage if you:

  • Are ready to build a new home
  • Are contemplating a major addition to your new or existing home
  • Want flexibility in choosing your term, interest rate and closing cost options
  • Want the convenience of a single application and single appraisal for both the construction and permanent mortgage phases of your loan.

Special Items Needed: A full set of blue prints, cost of construction breakdown, a copy of the contract with your builder, building specifications, septic plan approval, a copy of the builder’s license, a copy of the building permit, and a copy of the builder’s liability and comprehensive insurance policy.

Here’s how it works. We are able to offer you the convenience of processing the construction and permanent phases of your home loan at the same time. Almost all of our conventional mortgage loans can be combined with a construction loan to create a customized loan package, including some conventional fixed rate loans and all of our adjustable rate loans — whichever meets your needs.

Our program features a competitive interest rate during your home’s construction phase. Your only payments during construction will be the monthly interest on the amount drawn on your loan. Construction draws will be disbursed based on work completed and will be verified by a loan officer who will monitor the progress of your home’s construction. Permanent rates can be locked-in as early as the day you apply on adjustable and short-term fixed rate loan programs.

Hazard Insurance:
If your application is approved, you will need to provide LNB Community Bank with proof of hazard insurance. The amount of insurance required is determined by adding your current mortgage balance to the amount of home equity financing for which you have been approved.

Flood Insurance:
If it is determined that your property is in a flood zone, you will be required to carry flood insurance in an amount determined by federal regulation.

Download our residential mortgage loan application and complete it. Then gather the required documents so that when you schedule an appointment with one of our loan officers, everything will be in order to process your application as quickly as possible. Please call (812) 922-3231 for our Lynnville Office or (812) 925-3326 for our Chandler Office.

Application Checklist
Please bring the following with you when applying for your mortgage loan:

  • Signed and completed Residential Mortgage Loan Application;
  • Last two years tax returns and W-2’s;
  • Last two pay stubs, for each working borrower;
  • Real estate mortgage loan numbers, lenders addresses and loan balances;
  • All other creditors, loan numbers, addresses and loan balances;
  • Credit card statements showing account numbers and balances;
  • If application for a purchase of real estate, we need a copy of the purchase agreement;
  • If buying on contract, we need a copy of the contract agreement; and
  • Copy of Drivers License if you do not currently have an account with us.

The Residential Mortgage Loan Application is in Adobe Acrobat® (PDF) format and requires Acrobat Reader. If you do not have Acrobat Reader installed on your computer, click on this icon for a free download.

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