The Fox West area, spanning from Hortonville to Grand Chute, has been in a significant building and home-buying boom over the last two years, in the midst of the COVID-19 pandemic. According to FannieMae, the total number of homes under construction in the U.S., including both single-family and multifamily units, is the highest since 1973. Much of what was once sprawling farmland has become residential neighborhoods.
Wolf River Community Bank has been largely involved in this building boom from financing home builders, land developers, spec homes, condo developments, residential lot purchases, and home construction. For their work with home builders and other local businesses, the U.S. Small Business Administration is recognizing the bank for its lending support with the 2021 Wisconsin SBA Volume Lender Award in asset size $200 – $300 million. Since 2020, the bank financed over 800 homes in the Fox West area, including home purchases, construction and refinances. In 2021, a low-rate residential lot loan for 1.99% APR* was offered to support those looking to build.
Shannon Meyer, president and owner of Cypress Homes & Realty, says this continues to be a great time to build. “The existing homes market is heating up just as fast as construction costs rise,” Meyer says. “If you think you should wait to build to see if prices come down, you may not end up further ahead, and many of our clients have seen that.” If a homeowner has a property to sell, there’s an extra incentive to build. The increased equity from a home sale and the low interest rate environment can help even out the increased construction cost.
Wolf River Community Bank has worked with Cypress for over 15 years, financing its model homes and land development, as well as its clients’ construction loans. “We can fund the land, lot, and finished home,” says Jason Bloxham, executive vice president – chief lending officer for Wolf River Community Bank.
“Having a solid relationship with our lender is key,” Meyer says. “Wolf River Community Bank has been easy to work with on the flexibility of the draw process, which is important for us.”
Wolf River Community Bank funded several local subdivisions in Hortonville, Greenville and Grand Chute. Land developers including Jim Clegg of James Land Co. (developer of Wildwind subdivision in Hortonville) also appreciates the importance of their lender relationship. Wildwind offers large rural lots with scenic views. “We recommend Wolf River Community Bank to clients because they offer competitive rates and have a quick turnaround time,” says Clegg, who has 37 lots remaining.
The bank anticipates continued construction growth this year despite an upward trend in rates. Mortgage rates remain at historically low levels, and demand for lots and homes continues. To continue the support of those looking to build, the bank is extending its residential lot loan promotion through the end of 2022.
www.wolfriverbank.com
*APR = Annual Percentage Rate. New money only. One promotional rate per entity or individual. Offer valid through 12/31/2022. All rates and terms are subject to change without notice. All loans subject to approval. Other restrictions may apply. Example: The monthly payment for a loan of $50,000 with a 3-year term would be approximately $321.57 with a final balloon payment of $41,478.82.
Member FDIC. Equal Housing Lender.
