Dave and Matt are here to talk about construction loans.

There are 2 big issues to talk about when talking construction loans:

  1. How are you going to keep your rate locked during the construction process? Options:
    1. 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
    2. 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
    3. We also do standard locks up to a year where you can lock in for an entire year
    4. 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
    5. One-time close construction loans where you can lock right before you start building and get your mortgage going
  2. Down payment – all programs have different down payments
    1. We have lenders that will structure your scenario around your down payment capability
    2. VA loans – no down payment – you can get a VA construction loan with no down payment
    3. 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!

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