Dave and Matt are here to talk about construction loans.
There are 2 big issues to talk about when talking construction loans:
- How are you going to keep your rate locked during the construction process? Options:
- We have a lender who will give you a 90 day lock and will allow you to float down if the market improves in that time period
- We can do a cap and float up to one year, so you would float for a year but you are protected with a high limit cap – so if the market starts to worsen then you have that cap, but if the market improves you can still get the better rate
- We also do standard locks up to a year where you can lock in for an entire year
- You can simply float and lock, where we just let your rate float and keep you educated on the market and the best time to lock
- One-time close construction loans where you can lock right before you start building and get your mortgage going
- Down payment – all programs have different down payments
- We have lenders that will structure your scenario around your down payment capability
- VA loans – no down payment – you can get a VA construction loan with no down payment
- If you have a down payment, you have more options and we can look at all of those for you
If you decide to build rather than purchase and are already approved for a traditional purchase, you are fine to decide to switch to building. We will help you figure it out. If it’s a loan program, we can get a construction loan under that program!