A home Construction loan otherwise known as an Interim home Construction Loan is an easy way to get the home of your dreams. No more are you stuck in a cookie cutter tract home subdivision that has as much personality as a cardboard box. Instead you can start with the blank sheet of paper and have an Architect design the home of you dreams and contract a builder to build that home and in most cases for less cost and better workmanship than a comparable tract home development project.
We are one of the few home constriction loan specialists in The Woodlands, Texas area that can do both the one-time and two-time Interim home Construction Loan more about those later.
Home Construction Loan differences versus regular purchase loans
Interim home Construction loans are an unique because the money from the loan is used to pay for the development of your custom home construction. A home Construction loan can be used to:
- construct your custom home from the ground up
- complete construction on a half-built home you bought out of foreclosure
- a total remodeling of your home
Terms will depend entirely on the extent of your project. In most interim home construction loans, you pay only interest during the time of development. The Construction phase of your project will have a set time to be complete.
We will assist you to determine if a one-time or two time close is best for you and your family's goals and needs. Generally most borrowers choose the one-time close home construction loan. To see additional information on the differences, pros, and cons of the one-time close home construction loans and the two-time close home construction close see our post on that here.
Down Payments Needed for Home Construction Loans
Home Construction Loans are unique in residential loans such that you may be able to pay only closing costs and make no down payment. How's that you say? Well if you bought your land a while ago, have equity in the land because of your down payment or payments you've made or if you've owned it a while and have some equity that way.
This equity may be applied towards your down payment. As well as any monies you've given to the builder that are credited to you in the builder's contract may all be applied towards your down payment.
How much down payment or equity do you need for your home construction loan? Just call us and we'll be glad to go over your situation. In some cases using the equity in your land you may be able to bring little or no down. In other cases if your project is over $625,000 to a $1 million+ we'll be glad to go over the options in your situation.
Timing is everything for your Home Construction loan
As soon as you get the twinkle in your eye regarding building your own custom home you should contact your loan officer immediately. Because you will need to establish a budget and if you don't already have land to build on decide such things as should you purchase the land now or use the home construction loan purchase it and in doing so avoid another set of closing costs. In some cases you may need to buy the land because it may not be there in a month or so once you are ready to get the ball rolling. So call us at the number below and we'll get the ball rolling for you.
Finally, The Benefits of using a home construction loan to build your own custom home
The largest value of building your own custom home is value. Now and in the future. Tract homes are built on a production line basis and many times Quality is not in the job description. What is in the job description is get the house put together as fast and as cheaply as possible. While these homes may be safe and dry for your family they will not have the fit and finish that you want that meets your personal needs.
Since you are also most probably overseeing the project more closely, so is the bank that does your home construction loan, you can make sure the quality is there and most custom home builders have a much higher level of quality and that means more resale value to you if you decide to sell your home. In the end a home construction loan may be just the ticket for your dream home.
Call us at the number below and we can get you started on the home construction loan process. For more information on the details of the home construction loan process click here.
We also offer one-time and two-time close home construction loans throughout the Houston Texas metro area.
Original Article here
Comments(2)