Construction Loan Benefits to Borrower and Builder
Cost of buying a home today is expensive, whether you buy an existing home or build your new custom home.
As a would-be new homebuyer, you want the most house and custom features for your money. Not all existing homes on the market today will meet your wants and needs now or in the future. The inventory of existing homes with great features in this recovering economy is dwindling, and the pool gets drier each week. When your house search ends in frustration, it’s time to consider a construction loan.
Not all construction loans are created equal, nor do they offer the same benefits across the board. Before jumping in the car and driving through new neighborhoods under construction, do your due diligence and research construction loans first, to help ensure you find one that best fits your needs.
In today’s economy, money and features are everything. Not getting the interior and exterior features you want in a new construction is not worth any financial compromise.
Custom loans for custom construction. Simple, make-sense solutions for borrowers.
If you are a borrower looking to build, then look for construction loans that offer make-sense options that work for you:
- Low down payments and VA options
- Loans that meet national conforming limits for single units
- Cash lot equity counts as down payment
- Loans that match the cost of new construction
- Credit scores ranges that include lower levels than those found at standard commercial banks
- Owner-occupied single-family home custom builds
- Qualified builds that include duplexes, triplexes, fourplexes, when one unit is owner occupied
- In-house financing for interim and permanent mortgage loan
- Transparent, up-front underwriting on permanent loan
- Simultaneous close for lot purchase and interim financing
- One loan officer, one underwriting relationship, and a one-stop shop for your construction-to-permanent mortgage financing
Builders should benefit from make-sense construction loans, too.
Builders will see more profit in their accounts when their borrowers secure low down-payment
construction loans through reputable construction-focused lenders.
Great benefits for the builders will include:
- No retainage hold-backs
- Flexible draw schedules
- Easy builder approvals
- One loan originator, one relationship, one servicer from interim to permanent loans
- In-house financing for interim and permanent mortgage loans
- Transparent, up-front underwriting on permanent loans
- Simultaneous close for lot purchases and interim financing
- Quick turn time on interim closings, within 30 days of receiving final contracts, plans, and specs
- No third-party underwriters to slow construction loan approval processes
Time is money for would-be new homeowners and builders alike. With a construction loan, the homebuyer avoids ugly and laborious bidding wars for existing house inventory.
Borrowers choosing construction loans keep their forward momentum going and get the custom homes of their dreams with affordable mortgage rates today.
Builders benefit from an increase in new construction business from homebuyers tired of the exhaustive search for the ‘perfect’ existing house. Additionally, they become good employers that support the local economy.
In the end, everyone benefits by building a new community of happy homeowners.1