Construction Loans
Construction of your new home can be fun, yet frustrating. There are many decisions that need to be made. From our experiences we will advise you about what to watch for, items to be aware of, and how construction lending is done. We will try to keep you as informed as possible. For assistance click on Your Construction Loan Guide and Mortgage Calculator.
Pitfalls:
- Choosing a builder
- Changes during construction
- Starting the project too early
- Cost overruns—how do you pay for them
- Tracking your money—ask for our spreadsheet program
We do construction projects for the following types of properties:
- Single family
- Duplexes
- Up to 4-family residential
Terms:
- Interest rate priced at Prime
- Contractor affidavit required
- Flexible terms available
- Payments of interest only
- Draw requests completed before payment is made
- All draws are administered by a local title company
- All loans subject to credit approval
Equity in the project usually comes from three sources:
- Cash down payment (we collect at closing and disburse)
- Land ownership on which the home will be constructed
- Equity from a present home up for sale (we offer swing loans)
Additional Information
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