Who Esle Would LIke To Build A New Home?

With the substantial rebound in the local real estate markets, and the lack of viable homes available, many people are looking at building a new home to solve the "lack of inventory" problem.

I am excited to announce the release of our new JUST BUILD IT! Construction Loan.  This loan offers a down payment of only 5%, allows for just one closing, so that your rate is locked in up front and provides for flexible terms over the length of your intended construction project. 

In addition, this loan is very Builder friendly, and provides a service oriented support group to assist builders with managing the draws.

Some of the most frequently asked questions regarding this program are provided below:

Is my rate locked at closing ? We have both One Note & Two Note Construction Loans.   One Note Loans provide the ability to lock your end mortgage rate at closing and there is no need to refinance upon construction completion.  The Two Note closing provides a more flexible end mortgage amount, but your end rate is not locked and you will be required to refinance your construction loan upon completion into an end mortgage.

 How will my payments be structured throughout the process? During the construction of your home, you will be responsible for making interest only payments on the amount drawn on the account. When construction is complete, your loan will be amortized according to the permanent financing you chose.

Am I required to Escrow Taxes & Insurance?  We do not collect escrows for taxes and insurance during construction.   Because of this you are responsible for paying any of these bills that come due during construction.  Upon completion of construction, you may be required to establish an escrow account.  This is dependent upon your loan program and Loan To Value.  Generally loans under an 80% Loan To Value are not required to have an escrow account.

 What is the minimum down payment required for a construction loan?  For loan amounts under $417,000.00, our minimum down payment is 5%.

 Can Land Equity be used to meet down payment requirements?  If your land has been owned for 12 months or more, we can generally use the appraised value of your land for down payment requirements.  If your land is owned for less than 12 months, potential equity may be used, but the value will be dependent on how the land was acquired.

 What do I need to begin the construction process?  Upon receipt of a fully executed Building Contract, including specifications and plans, we can begin your construction loan process if you already own your land.  If your land is being acquired as a part of the construction process, we will also need a fully executed purchase agreement and legal description of the property.