New Construction Financing
March 12, 2017
Shopping for a new home can be a daunting task, particularly with the limited options our current housing market offers. Finding all your desired features in one property may seem almost impossible. While you may have to be flexible when searching for your dream home, if you don’t want to compromise on features, there is an option you may not have thought of. Sometimes when your dream home can’t be found, it has to be built.
Building a home from the ground up is an exciting endeavor, but one that comes with many questions regarding timing and financing. You may have questions like, “Where will we live while our home is being constructed”? Or “How do we go about financing a new construction before we sell our current home”? Luckily with the assistance of an experience real estate agent and loan officer, you can arm yourself with knowledge.
Paul Girard, loan officer at Evergreen Home Loans in Vancouver, WA, encourages home shoppers who are apprehensive about building a new home to not get overwhelmed. There are innovative loan programs that cater to borrowers who seek a smooth home building a buying process.
As an example, Evergreen Home Loans offers a “One-Time Close” loan which is designed to finance construction or a major remodel of a primary residence or second home. Some of the benefits to this loan program include:
- No construction fees.
- 30 or 15-year fixed loan terms, plus the construction period of 6-12 months.
- No individual draw or inspection fees.
- One set of closing costs.
- Monthly payments required at interest-only during construction period.
- After constructions period, loan converts automatically to permanent financing.
- Upon the completion of your newly constructed home and the sale of your current home, you have the option of a recast. This means while your loan terms and interest rate remain the same, your monthly payment is reduced to reflect your current loan balance.
When it comes to new construction financing, it’s even more critical for you to work with a lender and real estate agent who are committed to helping you navigate through these complexities. With the right guidance, you could start building your dream home today.