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WHAT MAKES UP THE CONSTRUCTION PROJECT COSTS?
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Soft Costs - Permit fees, engineering fees, architectural fees and other costs associated with building the home but are not directly a part of the actual construction cost. |
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Hard Costs - The actual cost of construction covering all materials and labor associated with the building of the home. Typically, you will enter into a contract with a building professional to build the property. Like a purchase contract for an existing home, this contract sets forth the work to be done and the costs involved. |
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Closing Costs - Costs Associated with the closing of the loan, such as title costs, loan fees, discount fees, inspection fees and appraisals. |
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Contingency Reserve - A reserve account to cover unforeseen cost overruns in the construction of the home. The cost of 0%-10% of the hard costs will be established in a Contingency Account. |
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Interest Reserve - At loan closing, an account is established to pay the estimated interest costs during the construction of the home. So you do not have to make out-of-pocket payments during construction. |
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| OWNER - OCCUPIED
(with contractor) |
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| If you will be using a contractor to build your home, then you have a wide variety of construction loan programs to choose from. There are one-time close, two-time close (not to be confused with two-timers) and 6-24 month construction loans. |
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| Complete our quick questionnaire and one of our construction loan project managers will help you determine how much you can qualify for. |
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| OWNER BUILDER
(without contractor) |
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| We have programs just for those that want to build the home they are to live in. Construction financing is available for those that have their general contractors license and for those that do not. The factors for determining whether you will be approved are: |
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| * Amount of equity |
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* Building experience (some lenders do not require experience)
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| * Credit profile |
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| Complete our quick questionnaire and one of our construction loan project managers will help you determine how much you can qualify for. |
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Please call (888) 527-5553 X101 to speak with
our project loan manger or complete our
short info form and
someone will contact you immediately. |
