|
Top
What kinds of construction loans do you offer?
We offer short-term construction loans for conventional
framed homes, log homes, timber frame homes, kit homes, modular*
homes and dome homes. You can build a home for your own use or you
can build a rental property. You can hire a contractor or you can
act as your own contractor. (* Some restrictions may apply.)
Top
Do I have to use my money before I can get a construction
draw?
No. When you order a draw check you will call, email, mail,
fax or log into our online borrower portal to make your draw request.
We will then mail you a check made payable to you. You will deposit
the check into your personal checking account and pay your contractors
and suppliers.
Top
How many times can I ask for a draw?
As many as you like. There is no limit and there are no
draw fees.
Top
Are inspections required for every draw?
No. During the loan, the construction will be inspected at the completion
of every three line items on the budget or as each 10% increment
of the loan payout is reached, whichever comes first. The cost of
each inspection averages $105.00 and is paid out of the loan.
Top
In the event of cost over-runs, can I get an increase?
Initially, an allowance for cost over-runs is built into
the loan but if an increase is still needed we can increase the
loan providing you qualify for the amount.
Top
How long is the loan?
The maximum term of the loan is 12 months and there is
no prepayment penalty.
Top
Can the loan start construction and I finish it later with
my own funds?
No. The construction loan must complete construction. Any
money you intend to use towards construction must be used prior
to the construction loan.
Top
Can the loan finish construction that has already been started?
Yes.
Top
What are your interest rates?
Our rates are based on your credit score. A minimum score of 700 is required. All Interest rates are adjustable. Please call 800.543.5600 for rate details.
Top
Is this an interest only construction loan?
Yes. Every month you pay interest only on the amount that you have
drawn from the loan. Taxes and insurance are paid directly by you.
Top
How much of a down payment do I need to qualify?
In most cases, the minimum equity into the project needed
prior to funding is equal to 35% of the total cost of the project
(land cost plus construction cost.) Any money you have already paid
toward the land and/or construction can and will be applied to the
down payment (equity) requirement.
Top
Can the cost of the land be paid from the construction loan?
In most cases, as long as the amount of equity you have in the project
is equal to 35% of the total cost of the project (land cost plus
construction cost), then the loan can pay off the balance of the
land.
Top
What is your loan to value percentage?
The highest is 65%.
Top
What is the lowest and highest construction loan amount?
The lowest is $50,000.00 and the highest is $415,000.00.
Top
Do I need to be pre-qualified for a permanent loan prior
to the construction loan? Yes.
Top
Can I hire a contractor to build my home?
You can hire a contractor or you can act as your own contractor.
If you act as your own contractor, we do not require you to have
a site or project supervisor.
If you have any other questions please call us at 800-543-5600.
Many of our customers are building a house for the first time, so
we are very familiar with your concerns and needs.
|
Construction Loans
