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Our team prides itself on our ability to provide hassle-free and streamlined services that are specifically designed to make the new construction and renovation loan process as easy and stress-free as possible for our clients.
With years of experience under our belt, we have fine-tuned our process to ensure that our clients have all the support they need to achieve their vision and turn their dreams into a reality.
Whether you’re looking to fund a major renovation or embark on a complex new construction project, our team is there every step of the way. From initial planning and application through to funding and beyond, you can count on us to provide expert guidance and unmatched support, all while keeping the process as simple and straightforward as possible.
The application process for a construction-to-permanent (C/P) loan and traditional mortgage financing is very similar. The lender will review your income, assets, debts, and credit history as well as order an appraisal. When you apply for a C/P loan, however, you’ll also be asked to provide additional documentation related to the construction, such as the contract you’ve signed with the builder, the construction plans and specifications. The approval process might take a little longer because of the additional information that needs to be reviewed
Yes, the rate is secured ahead of settlement on the construction loan. The permanent loan is also secured upfront to protect the consumer.
Potentially zero, if the appraisal on the to be renovated home supports financing everything.
No, very similar to buying a home already built. In many cases the costs are less since the transfer taxes could be based on the land price.
As your home is being built or renovated, you builder will periodically request funds from your lender to pay for completed work. Your lender will order an inspection to verify the work has been completed and will disburse money from your loan proceeds to the builder. These disbursements are called “construction draws.”
During the construction phase of your loan, you’ll be billed monthly for interest. The interest-only payment is calculated based on the amount of funds the lender has previously disbursed to your builder for completed work. Depending on the location of your property, you may also be required to pay a flood insurance premium with your interest payment. You won’t need to make any principal payments until after construction is completed and your loan moves to the permanent phase.
Yes the loan could advance the builder deposit at closing of the construction financing.
Yes, the loan could advance the fee to the architect for design work.
Yes, very typical to see materials ordered in advance.
Our experience is second to none. We have a history of managing thousands of projects over the last 2 decades.
The payments on the new project are interest only during the build and only paid on the amount advanced. The permanent payments are not set to P&I until the existing home is sold. This helps personal cash flow when building.