Do you dream of having your home built exactly the way you want it to be, by the builder of your choice? If so, a new construction loan may be the loan for you!
A new construction loan is a type of loan that can be used to fund the building of your new dream home. This is a short-term loan that is taken out by either the home builder or the home buyer.
New construction loans do carry a few more requirements than other loans do, such as having reserves or lower debt to income. However, with just 10% down and interest only payments during construction, it is a very affordable option to get exactly what you want in a home.
If you are purchasing the property and hiring a specific builder to build your new home on the purchased property, you will most likely be the one taking out the new construction loan. This loan will cover the initial costs of the building project before the long-term financing takes effect.
The process of transitioning from the short-term new construction loan to the long-term mortgage typically occurs after the home has been completely built. A simple refinance of the original construction loan into a more permanent 15 or 30-year mortgage takes only a few weeks.
Having your home custom built is an incredibly exciting process, but it can also come with a lot of stress. Don’t let worry about your financing options add to that stress! We can help you secure the financing you need to get started on your dream home as soon as possible!
If you are considering building a new home, give us a call today! We are always happy to answer any questions you may have and to help you unlock the door of your dream home!