OMG Mortgage Capital can help you with custom home construction financing. We have excellent relationships with many different lenders, so that we can offer flexible, customized financing options.
Doing a little work before you approach us to help you get a loan is important. A financial assessment should be at the top of your list. First, you’ll need to remember that the down payments are usually higher for these construction mortgages.
The funds can be provided simultaneously or in different phases throughout the construction process. Some lenders prefer to give the money and allocate draws after certain milestones. It depends on the lender and the deal that you can arrange.
Here’s an example: A banker or credit union might give out funds at 40% completion, 75% completion, and 100% completion. Keep in mind that lenders usually send out building inspectors to ensure that each milestone has been reached.
There are also what are called completion mortgages, which are part of your choices regarding custom home construction financing. Borrowers get the funds here after the property is entirely built. Submitting an offer to purchase one of these homes means you’ll need to make a down payment, which can be paid in different installments.
There’s also more risk involved with a new construction loan, so you must have your finances in order. Some lenders will ask for more documentation and stronger credit scores, and they will also take a good look at the builder you are using.
The lender’s appraiser will examine different metrics, including the land value, costs, and project plans. It’ll also examine the project’s overall value compared to other recently sold homes in the area. Get in touch today to learn more if you think one this financing might be right for you.
