Construction Financing Made Easy
Terms you need to know:
∗Construction and Permanent Loans
A construction loan is basically a short term line of credit loan that pays off upon completion of the project when the loan is “taken out” in the form of permanent financing. The main thing construction loan lenders need to know is that you have a lender set to take out the construction loan in full upon completion of the project.
Select a Lot loan to finance the purchase of a residential lot for future construction of your primary residence or second home. When you are ready to build, a lender can help you with your Construction-To-Permanent loan.
Don’t wait to sell your old home before building your dream home. You can access equity in your current home to use as the down payment on a Construction To Permanent loan.
Ask about a Remodeler Loan designed for the homeowner who is making a major improvement to their primary residence. This unique second mortgage calculates the value of the home by adding the value of the planned improvement to the home’s current value. You get immediate access to the construction funds at loan closing. That means more dollars are available to style your home.
∗Private Mortgage Insurance (PMI)
When your down payment is less than 20%, you usually have to pay for Mortgage Insurance, (PMI). This protects the lender in case you don’t make your house payments, they repossess your house, and they have to sell it for less than the amount left on the loan.
Now; find the local UBuildIt office and contact them about their lenders and how to complete that dream home of yours. Just Click on the Locations tab to get started!
Lending sometimes seems to have its’ own language! For a basic listing of some of the main lending terminology and what they mean. See terms below.
UBuildIt takes great pride in enabling clients to usually qualify the best and most favorable lending opportunities available. Most UBuildIt and URemodelIt clients are able to avoid PMI. This alone allows an average of 5-10% more home for the exact same payment amount* (*see lender for exact numbers and details)
Likewise the equity stance that most UBuildIt/URemodelIt clients experience allows for lower interest rates on their permanent mortgage and even lower credit scores relative to approval and low interest rates.
Many clients, even with credit scores in the 500’s not only qualify for a new home but also qualify for rates as low as those normally reserved for clients with scores in the high 700 and 800’s
“We find based on the extreme equity stance, quality of construction and UBuidlIt’s long and extensive history that we are able to get clients qualified on new homes even easier than we can on preexisting homes and for less down payment, sometimes even no cash down payment at all!”
‘Chad Chaplinger of Caplinger Mortgage Group’
A LOAN FOR YOU:
You may already have financing lined up and prefer to stay with your preferred lender. If so then please do! Remember we are UBuildIt and we are construction consultants…we don’t make money from your vendors please use whomever you prefer! We are happy to work with any vendor of your choosing, including your lender!
You may want to procure your loan locally, your local UBuildIt office will gladly introduce you to local lenders with whom they already have a relationship.