New Construction Loans
Building your own home is a dream for many, and with a New Construction loan we can make that dream a reality. An important first step to breaking ground on your new home is getting the builder you want to work with approved for construction loans. Schedule a meeting today to go over your options
- Build the home you want with as little as 5% down.
Appointment
Unlocking Your Financial Potential Starts with a Conversation
Navigating the world of real estate financing can be complex. A personalized consultation with one of our specialists is the key to ensuring you’re fully aware of your financing options and making informed decisions to reach your goals.
- Personalized Assessment:
Our financing specialists begin by understanding your unique financial situation and real estate goals. This tailored approach ensures that the financing solution recommended aligns perfectly with your needs.
- Transparent Guidance:
No confusing industry jargon here. During the consultation, we break down complex concepts into clear, understandable terms. You’ll have a complete understanding of the mortgage process, rates, and terms.
- Customized Solutions:
Every borrower is different. Our specialists work to find the best possible mortgage solution for you, taking into account your financial goals, credit history, and current market conditions. We aim to make your homeownership journey as smooth and affordable as possible.
F. A. Q's
Frequently Asked Questions
Building your dream home is an exciting journey, and a new construction loan is the key to unlocking that potential. However, you may face difficulty navigating new construction loans, especially with all the unfamiliar terms and processes. Here are the top 5 most common questions our clients often ask about new construction loans.
There are two main types of new construction loan options available. One is a construction-to-permanent loan that combines temporary construction financing with a permanent mortgage. This means that you can make interest-only payments during construction and then switch to regular mortgage payments once the home is complete. Another type of new construction loan is a stand-alone construction loan, a short-term loan that only finances the construction phase. You may need to refinance into a permanent mortgage when the home is finished.
Down payment requirements for new construction can vary, typically from 5% to 20%, sometimes as high as 25% to 30%, depending on your credit score and loan-to-value ratio. Consulting lenders and exploring options will help you find the sweet spot for your budget.
Lenders typically finance up to 90% of the total project cost (land and construction). However, this can vary depending on several factors, including your credit score, down payment, and estimated construction cost.
Interest rates for new construction loans can be slightly higher than traditional mortgages but often lower than other short-term personal loans. However, you can expect additional fees associated with new construction loans, such as origination fees, construction loan administration fees, and inspection fees.
The draw schedule outlines how loan funds are released based on completed construction milestones. This ensures funds are used for intended purposes and protects both you and the lender. Understanding these schedules helps control cash flow and ensures funds are directed where they're needed most.