A brand-new home may seem like a far-off dream but, in reality, owning a newly constructed home can be a more achievable goal than you might imagine.
First, let’s consider the fun part: designing your home. When you build a new home, you get the exciting privilege of making all the decisions. Want a kitchen island? You can have it. Dream of an open layout? You design it. The possibilities are really endless when it comes to customizing a home to your preferences, style, and needs.
Now, for the financial stuff (it’s great news, we promise)…
Most lenders need a down payment of 20% or more for a newly constructed home, but our Single Loan Close Construction Program (SLCCP) has a down payment requirement as low as 5%.
So, let’s say you find the land of your dreams – where you would LOVE to build a new house – but you’re waiting for your current home to sell, and you can’t swing a 20% down payment. If you qualify for our SLCCP, you may be able to put down as low as 5% and snatch up that land before it’s sold to someone else.
Plus, our program allows you to lock in your interest rate for permanent financing BEFORE you begin construction on your new home. How can this benefit you? Well, if interest rates rise during the construction of your home, you don’t have to worry about your rate increasing. Talk about peace of mind!
Another great benefit of SLCCP is that, during the construction process, you make interest-only payments on the outstanding principal balance. You don’t start making principal AND interest payments until construction on your home is complete.
And maybe you’re wondering, “Why is it called ‘Single Loan Close’? What does that mean?” And to that we say, “Excellent question.”
We chose this name because our program has ONE loan that covers the lot purchase, construction costs, and permanent financing (mortgage). With other mortgage lenders, you may need to pay construction costs and permanent financing as two separate loans – meaning you might need to go through two closings. (No fun, right?)
Plus, let’s say you want to keep your current land but would like to build a new home on it. You can even bundle the cost of your current home’s demolition into our SLCCP.
Really, the bottom line is this: we designed our SLCCP to help streamline and improve the process of financing a new construction home.
So, is building a new home right for you? If you’re interested in learning more about our Single Loan Close Construction Program, contact one of our loan originators.