New Construction Loans
loan may provide a way to remodel an existing home or to purchase an
existing home that will require some additional repairs before putting a
permanent loan on the property. In many instances, our construction
lenders will allow the borrower to be the General Contractor/Builder.
These loans are available to borrowers from city lots to large acreages
and from factory pre-built manufactured homes to million dollar
People have several reasons for needing a construction loan. The first and most obvious reason would be to construct a new home.
A construction loan
is a short-term loan that is a fixed rate interest only and is usually
from 6 to 18 months in length. We offer these loans on owner occupied
properties as well as investment properties to build and sell.
Home Builder Loans
The down payment can be as low as 10% of the total cost of the loan needed. In the case of the land loan
, we may be creative as to the equity the lender will require during the construction
period if cash is not readily available. Even though we strongly encourage the borrowers to purchase their land at the close of the construction
loan, sometimes that is not possible. Your equity in your land will be credited toward the down payment required by the construction
loan. It is possible, depending upon your credit package and other compensating factors to do a loan for zero down!
The interest rate on a construction
loan may vary depending, again, on location, creditworthiness, and the total loan package, and is tied to the prime rate on Wall Street. The rate for construction
lending has been has been as low as 3.875% to 6.5% in the past. These rates will also vary depending on whether we do a one time close or a construction then permanent loan.
One of the most important steps in purchasing a home is to be pre-qualified or pre-approved
. This step can eliminate wasted time in the purchase transaction. A pre-approval
process can also be helpful in structuring your final goal. You may find something showing up on you credit report that is incorrect, or may need to do some debt consolidation in order to qualify for the price range you were interested in. We are there to assist and advise with any challenges that may come up.
A pre-qualification can be handled by telephone
. This will be followed up by an email with a link to our loan application, a land & construction loan flyer and a credit report authorization. Once we receive your application, we will pull your credit, run your numbers and as soon as we receive a contract, or intent to proceed, we will send you a list of things we will need to submit your loan to the lender. The pre-approval process can usually be done the same day we receive your application and a pre-approval letter can be issued at that time.
Please call us today
or use our online pre-qualification form
to get pre-qualified for your home.