During the application stage, you will discuss your loan options with a Construction-Permanent Mortgage Loan Originator (MLO) of your choice or from our list of preferred lenders. You will be guided by your MLO through the process from start to finish. They will gather all appropriate documentation from you and provide you with disclosure information to review and sign.
An appraisal will be performed by a licensed real estate appraiser. After reviewing your home plans, specifications and property, the appraiser will determine what the estimated value of your home will be upon completion of construction.
This stage coincides with the construction of your new home. Loan funds are disbursed based on the terms of your Construction Loan Agreement and draw schedule.
Prior to each disbursement, an inspection is made to validate the work scheduled to be done has actually been completed. Funds are released for payment after each inspection has taken place.
This is the final stage of the process. At this point, your loan is converted from the construction phase to a permanent mortgage.
The Construction to Permanent loan process completes at conversion. You will now begin to make your regular mortgage payments as structured for your permanent mortgage.
What if I don't have land to build on?
Our team of sales professionals is here to assist you. Call or schedule a visit to one of our Design Studios and we will work with you to find land that is perfect for your new home.
Can I finance my land into my mortgage?
Yes. Many people believe they already need to own their own land to obtain a loan to build their home. Construction loans are frequently written to include both the house and the land.
Can I use land equity as a down payment to build a house?
In many cases, yes. If you own land outright or have a significant amount of equity, you can obtain land equity funding, which in turn can be used toward the down payment of your new home.