Construction programs we offer
Two-time-close construction: Conventional and Jumbo
A two-time-close structure uses one loan to finance the construction phase and a second, separate loan for the permanent mortgage after the home is complete. Because there are two transactions, the borrower may need updated qualification and property documentation before the permanent loan closes.
One-time-close construction: FHA and VA
A one-time-close structure establishes the construction financing and permanent mortgage together through one closing. The borrower, builder, land, project, plans, budget and completed property still must meet the applicable program requirements.
Two different kinds of new construction
Builder new construction
You purchase a home being built by a production or semi-custom builder. The builder generally controls the lot and construction financing, and your mortgage finances the completed purchase.
Custom construction
You are financing the actual construction project. You may already own the lot, need to buy land or hire a custom builder. The construction program finances the project according to its specific closing and draw structure.
How construction draws work
Construction funds are generally released as the project progresses rather than being handed to the builder all at once. Draws may correspond to stages such as foundation, framing, mechanicals, drywall, interior finish and final completion. Inspections or other verification may be required before funds are released.
Using land you already own
If you own the lot, the current land value, existing lien, original purchase details, construction budget, completed appraised value and equity all become part of the financing analysis.
Builder approval and cost overruns
The builder may need to satisfy program requirements involving experience, licensing, insurance, contract, schedule and financial information. Borrowers should also understand how change orders, unexpected site conditions and cost overruns are handled before construction begins.
What to send for a construction review
Whether you own the lot, approximate land value, existing land loan, construction budget, builder, plans/specification status, estimated completed value, desired loan amount, income structure, assets and where you are building.