New Construction Loans

We work with various construction lenders and will find the best program to meet your needs.   If you are looking to build a new home, you have come to the right place. 

Constructions Loans differ from regular purchase money or refinance home mortgages in the way the loan amount is calculated and the way it is structured.  Factors considered are the cost of the project, the appraised value of the completed home, the builder and his ability to build the home. 

You can take advantage of a One time Close program where you only have one closing for the construction and permanent mortgage or a Two time close where two seperate loans are obtained.  There are benefits for both programs,  but in most cases we are able to save you substancial closing costs by correctly structuring the best options for you needs.   

Before calculating how much we can loan, we need a basic budget. The main components of construction loans that are included in the budget are:

• Soft costs (architectural plans, engineering and permit fees).
• Hard costs (all the actual physical costs of construction).
• Closing costs (origination and lender fees, title fees, and closing fees).
• Inspection fees.
• Reserves (interest reserve and contingency reserve).
• Existing lot pay off or purchase price of the lot

Regular purchase money or refinance mortgages are based on Loan to Value Ratio (LTV). Where as, construction loans are based on LTV as well as Loan to Cost Ratio. Furthermore, in a normal mortgage the closing costs are added after calculating the Loan to Value, whereas a construction loan usually includes the closing costs.  We can analyze all these factors to structure a construction loan the will give you the best solution for your situation.  Both during the construction process and for your permanent mortgage on the completed home. 

Construction Loans are further complicated by the fact that each investor/lender calculates the numbers differently. The problem most applicants of construction loans face is they get an 11th hour call informing them that the final loan amount as calculated by an underwriter is insufficient to meet the borrower's needs. We will do our best to work with you in avoiding any of these "last minute" unpleasant surprises.

Our familiarity with the guidelines of construction loans offered by most major institutions makes it possible for us to choose the program that best suits you and your new home. In fact, since we are approved with all these numerous investors, the cost of the loan to you is generally better than if you had applied directly.

Don't forget, Construction Loans are a specialized field. You will benefit from working an expert consultant. We will work with you from the very beginning until the completion of your new home, making the process smooth and seamless.