Construction & Lot Financing
Build Your Dream Home the Simple Way
Can’t find the perfect home? Then we can help you build it! Financing a lot and/or the construction of a home is a great option but it can come with potential pitfalls.
We’re here to be your guide from start to finish:
Before You Buy…
It can be tempting to jump in headfirst without a plan, but building takes a team! And your team should be assembled before you purchase a lot or teardown. Trust us! A team will help ensure what you want to build fits what you can build.
As You Plan…
It’s possible to go through different lenders for each phase of your project (lot loan, construction loan, permanent loan). Or we can guide you through all three phases with our streamlined process that begins with the end in mind.
After You Close…
You will likely either refinance or recast your permanent financing, because construction projects rarely come in “right on the money.” Our loans are set up to give you the flexibility to dial in your long-term financing perfectly when the job is complete.
Build Your Team
Realtor. A great realtor will help you find the right lot for the home you want to build.
Builder. The right builder will know if you can build what you want on the lot you find.
Lender. We’ll make sure you qualify for your permanent financing before you purchase a lot.
Architect: An architect will make sure the home plans fit the lot you want before you buy it.
Buy Your Property
Lot Loan. If you’re not buying your property in cash, then you will need a lot loan. Lot loans are temporary loans from 1 to 7 years and can be interest-only.
Plans & Permits. After you buy the lot, your team will finalize the plans and apply for permits
Build Your House
Construction Loan. With completed plans, we execute an interest-only construction loan. This pays off the previous lot loan, and payments are set up to draw as the home progresses.
One-Time Close! Your permanent financing is locked in when we close on the construction loan. So, you’re protected if the market worsens during construction. If the market improves, though, you can flow down to the improved rate once the home is complete!
Move In!
Construction to Permanent. When construction is complete, your construction loan coverts from interest-only to principal us interest at the same interest rate.
Recast the Balance. If your construction comes in under budget, your monthly payment will be based on the loan amount needed and not the original approved loan balance.