Construction Loan Process Overview

2019-07-24T20:44:43-04:00Construction Loans|

The loan process for a construction loan is not much different than a “regular loan”.  There are a few additional items that are needed that relate to the construction project and appraisal, but the process and qualifications are very similar.  If you qualify for a non-construction loan, you should qualify for a construction loan for

Why do you need so much stuff?

2019-07-24T20:44:51-04:00Construction Loans|

We in the mortgage industry ask that same question every day.  The quick answer is because we do.  The longer answer is that out of the financial crises of the late 2000s the Dodd-Frank Act was created which created the Consumer Financial Protection Board (CFPB) which created a rule called the Ability to Repay (ATR).

How is the down payment or loan to value (LTV) calculated?

2019-07-24T20:45:36-04:00Construction Loans|

The down payment or equity needed will vary depending on a few variables such as when the property is purchased as well as the appraised value.  Both the cost of the project and appraised value are considered. Buy land to build or a buy house to tear down & build:  The program will allow you

How long is the construction phase?

2019-07-24T20:45:43-04:00Construction Loans|

The construction term is generally 12 and up to 18 months. The construction phase is the period of time your home is under construction. Once your home is complete, the loan moves automatically to the permanent phase and end loan with payments of principal and interest. During construction your payments are interest only based on

What documentation is needed for a Construction Loan?

2019-07-24T20:45:59-04:00Construction Loans|

The documentation needed for a construction is not that much different than a “regular” loan?  While every client’s items list will be different and the items below are not a complete list, typical items will be: Plans Unless your project includes just interior work with no change in the floor plan, you will need plans

Keys to a Successful Home Construction Project

2019-07-24T20:46:07-04:00Construction Loans|

If this is your first time doing a major rehab project or building a home, there will be some challenges and frustration along the way.  Fortunately, when it’s all done and your vision realized, it will be well worth the time and effort.  Some of the keys for a successful project are: Be Patient I’m

The Pros and Cons of Custom vs. Production Home Building

2023-12-25T04:37:28-05:00Construction Loans|

Building a home is a journey, filled with possibilities and the promise of creating a space uniquely tailored to your lifestyle. As a prospective homeowner, one of the key decisions you'll face is choosing between custom home building and production home building. Each option has its own set of advantages and disadvantages and understanding them

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