Our construction financing process is as easy for you as it is for your clients. Our construction loan covers the entire cost of the land, construction process, and permanent mortgage financing – and it requires just 5% down.
resources for construction builders & contractors
We care about making the mortgage lending process as seamless as possible for our customers and business partners — and the construction process is no exception.
Enjoy true flexibility by requesting draws as needed, without having to meet any set completion points.
Not only do we offer ideal construction financing, we also have a wide variety of end loan options to cater to your client’s unique situation.
Our Single Loan Close Construction Program allows your clients to build their home with as little as 5% down. Other lenders typically require 20-25% down.
One loan can cover the cost of the land, the construction process, and the permanent financing. This is achieved in a single closing, which means no re-qualification or extra paperwork in most cases. Plus, your clients simply pay interest-only payments on the outstanding loan balance during construction.
We work with you to implement a solid timeline to help the client rest easy, and you, the builder, stay on track.
There’s no need to worry about financing falling through. Although we operate like an independent mortgage banker, we are owned by a bank with billions of dollars in assets, which means we offer the financial security you need to get your job done without a hitch.
Our draw process is flexible, allowing you to request draws as needed without having to meet any set completion points.
Lien wavier provided; Inspection ordered;
Title company contacted to complete lien search
showing no liens on property
Lender disburses draw to builder;
Can be wired directly
When you’re ready for a draw, all you have to do is present a signed request for an advance and a lien waiver. Then, we’ll order an inspection and contact the title company to complete the lien search right away.
Once the title search is completed (and shows no liens are placed on the property) and we’ve received a report of the completed inspection, we’ll disburse the draw to you, the builder. This can be wired directly into your bank account. It’s that simple.
Our Single Loan Close Construction Program is a unique, affordable solution for homebuyers who haven’t quite found their dream home and are considering a custom build. With a down payment as low as 5%, your clients can create their dream home, even if their funds are not easily accessible.
Construction Financing Process
Application goes through processing and underwriting
final inspection, title search, and Certificate of
Occupancy is provided
If you have a client looking to move into an existing new construction or a home we did not finance the construction for, we offer a variety of end loan financing options. Plus, we can utilize aged documents up to 9 months (with 95% loan-to-value and a minimum credit score of 700 ), which means your clients won’t have to re-supply documentation.
All loan requests are subject to credit approval as well as specific loan program requirements and guidelines.
- No- and low-down payment options available (0-5%)
- Credit score as low as 620
- Fixed- and adjustable-rate mortgage options available
- Jumbo loans: No-down-payment options for loans up to $2.5 million
- Medical Professional Loan Program: No-down-payment required for eligible doctors, dentists, and veterinarians
- Powerhouse 100: No-down-payment loan program only requires 2 months of reserves, which can come from a gift
The rate market can be unpredictable, and your clients may benefit from locking in their interest rate sooner rather than later.
If your client is looking for permanent financing of their newly-built (or soon-to-be-finished) home, we can offer them a long-term rate lock with many of our mortgage loan programs.
- Up to 480-day rate lock — nearly 16 months — for conforming fixed-rate loans
- Up to 360-day rate lock for conforming adjustable-rate mortgage (ARM) loans or jumbo loans
A rate lock is not a commitment to lend. An upfront fee may apply and may vary based on lock term. Final approval is subject to a satisfactory appraisal, adequate hazard insurance, satisfactory flood determination, satisfactory review of title, and underwriter’s final review of all information prior to close. Extended rate lock terms are not offered in the following states: DC, IA, MD, ND, NJ, VT, and WA. In MN the loan amount must be at least $100,000. With adjustable rate mortgages, the interest rate is variable and may increase or decrease every year after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment.
When your client locks in their interest rate with Waterstone Mortgage, they are guaranteed the rate will not go higher – but did you know it could actually decrease?
Depending on market conditions 30 days prior to the start of their permanent financing term:
- 90- to 270-day locks can decrease to the current 60-day rate lock rate
- 300- to 480-day locks can decrease to the current 60-day rate lock rate, plus 0.125%
Your clients can contact their loan originator at any point for a complimentary consultation. We can answer any questions they may have and determine if market conditions will allow for a rate decrease.
A rate lock is not a commitment to lend. Final approval is subject to a satisfactory appraisal, adequate hazard insurance, satisfactory flood determination, satisfactory review of title, and underwriter’s final review of all information prior to close. Extended rate lock terms are not offered in the following states: DC, IA, MD, ND, NJ, VT, and WA. In MN the loan amount must be at least $100,000.