When it comes to new builds or construction mortgages, let Source Mortgage be your guide. We can provide options that banks may not be able to offer, giving you the freedom and knowledge to make the best decision for your situation.
We can provide financing for the land purchase if required for a build. A minimum of 25% down will be required for the land purchase. The idea is you only hold the land mortgage for a few months until it is paid out and the build begins.
I need a draw/construction mortgage to finance the cost of a home build on land I have purchased.
This is same process for qualifying as a traditional mortgage and typically will be subject to the same rates. Minimum down payment is 5% on the first $500K and 10% on any amount over up to 1M and Beyond 1M you need 20%+. It may also be possible to get back the money put down on the land purchase when you start the build.
This would be considered a self-build. The procedure is the same as above, however rates will be higher due to self-builds being treated as higher risk. As a result of this, most lenders will require 20% down.
You may be building a development or several homes and need financing until the homes are sold off to the buyers. The buyer will be required to get a mortgage in order to purchase the home. Due to the commercial nature of the process, commercial rates and down payments would apply. Luckily these costs would all be industry competitive.
Whether you are a builder or a buyer, our job is to ensure that you are aware of all of the options available to you. If you’re ready to get your project going or are curious about how Source Mortgage can help you reach your goals, contact us today!
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
|V.R.M.||Prime-.65 or 2.35%|