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New Home Construction Information
We know that owning the home of your dreams comes at a price, so we have designed a streamlined loan approval process, to develop a Custom Builder Construction program that will make owning a home that much easier.
We know that building your home is an exciting and busy time, so you will work with a loan specialist who can answer your questions and your builder's questions which will keep your project moving smoothly.
Let's get stated planning and building your "Dream Home" today. Call me for your comprehensive "Home Building Evaluation". We have every thing here for you.
| Home Construction Loan Features: |
| · Loan amounts up to $3,000,000+ |
| · LTV up to 95% at $500,000 construction loan amount |
| · Full, Stated Income and No Ratio document types |
| · Decision credit scores as low as 620 |
| · Primary residence and Second homes |
| · No monthly mortgage payments during construction |
| · Interest rate protection and free float down option |
| · Simple conversion to permanent financing with no cost to request any other loan programs |
| · Ground-up and major rehabs (primary residence and second homes) |
| · Construction terms: 6, 9, 12, 15, 18 & 24 months |
| · 24/7 online draw requests |
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· Minimum equity requirements apply |
| Owner Occupied Lot Loans: Ltv up to 90%, up to 50 acres and lots up to $1,000,000 |
Basic Construction Lending Questions:
Q. What is a Construction-to-Permanent (CTP) Loan?
A. Often, getting approved for a construction loan can be tricky. In many cases, two loans are required--one for construction and one for permanent financing. Usually you will have to pay closing costs on both loans, not to mention the extra paperwork, time and hassle involved. We offer a single-close Construction-to-Permanent Loan that combines both construction and permanent financing into one loan.
Our Construction-to-Permanent Loan allows for a construction period of 6 to 12 months. Other options are also available. And when your project is complete, the loan simply converts to a permanent mortgage.
Q. Besides a CTP Loan, what other costs may be associated with the construction of my home?
A. In addition to the contract price, it is common for a construction lender to build a contingency reserve into the loan. This is a specified percentage or dollar amount usually required by the lender in case of unforeseen circumstances that could negatively impact the construction of your home. The amount required is usually based on a percentage of the contract price, on-site costs or loan amount.
Additional costs will vary, and may include construction loan closing costs and fees and special insurance requirements. But don't worry; at 1st USA Mortgage Corporation, our Construction-to-Permanent Loan includes on-site costs, off-site costs, closing costs, interest reserve, contingency reserve and lot purchase or value.
Q. When will I have to make loan payments?
A. At 1st USA Mortgage Corporation, our Construction-to-Permanent Loan program includes an interest reserve, which means that you will not have any payments out of pocket during the construction period. We will incorporate an interest reserve account within the loan amount. Depending on how quickly you use your construction funds, there may be sufficient funds within the construction loan to carry you through the entire construction period. As each construction project is unique, you will need to discuss your options with your Construction Loan Specialist.
Q. Will the payments on my construction loan include principal and interest?
A. Not necessarily! You may have interest only payments until the house is completed. Generally speaking, this means that interest is charged only on the amount of funds used. Interest on our Construction-to-Permanent Loan is charged based on the funds used. Payments are interest only during the construction period, converting to principal and interest payments upon completion of the home.
Q. What will I need in order to start my loan request?
A. 1st things 1st . . . just pick up the phone and call me 800-843-5904 or (678) 201-5904. Remember, you're asking us to loan money on your dream. We will need to see that dream as clearly as you do. Therefore, in addition to standard credit documentation, we will want, at a minimum, copies of the following documents as we start this process: Don't worry just call me I'll walk you through this entire process, step by step . . .:
1. Final plans and specifications. These are needed in order to obtain an appraisal.
2. Purchase contract for the lot (or Settlement Statement if you've already purchased it)
3. Property profile (description of materials)
4. Line Item Cost Breakdown from the builder
5. Builder's construction contract
6. Copy of Builder's license
7. Builder's statement or application
Keep in mind that you need to obtain the necessary building permits for your community.
Call us now: (678) 201-5904. Get your "Dream Home Plans" started now.
Have you found your "Ideal Home Plans"? After selecting your plans we would need to create a Construction Material Cost Package / Line Item Cost Breakdown (from your builder or building material supplier). I'll help you get it. This construction cost package consist of your lot cost, soft and hard cost items, construction cost, interest and contengency reserve and closing cost. We would then ask for an evaluation from our appraiser to confirm the true value of the home we're building. From here we can complete your application for your "Construction Loan Approval".
Detailed Home Construction Lending Questions and Answers:
How will my "Construction Process" flow from start to finish or move in?
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