Building a home from the ground up is one of the most exciting — and rewarding — journeys you can take. Whether you’re designing your forever home or creating a custom space that finally fits your lifestyle, Kaye Jones with TowneBank Mortgage shares helpful insight on how construction-to-permanent loans can simplify the process. Learn how this type of financing works, what to expect during the approval process, and why working with trusted local partners like Sandmark Construction and TowneBank Mortgage can make all the difference.
CONSTRUCTION LOANS
Whether you’re struggling to find a home that fits your needs, or you’re finally ready to build your forever home, our construction specialists will help you build your dream home on a strong foundation.
CONSTRUCTION TO PERMANENT LOANS
Secure financing for both the construction of your home and your permanent mortgage all in one loan. Once the construction period ends, your loan is converted to a traditional mortgage. This allows you to work with one lender from start to finish, helping to save both time and paperwork.
THE APPROVAL PROCESS
Construction loans typically require a higher down payment, good to excellent credit, a lower debt-to-income ratio and can incur higher interest rates. We must verify that you have at least 15% contingency funds in addition to your down payment and closing cost. Along with your application, your lender may require:
- A copy of the deed to the land (or contract for the purchase of the land if you don’t own it already),
- A contract with a builder,
- Complete builder information,
- Plans and specifications for the home,
- Certificate of liability insurance for the builder,
- And builder’s risk/homeowner’s policy.
HOW DOES THE BUILDER GET PAID?
Builders are paid through a series of “draws” throughout the construction process. These draws require a site visit or progress inspection by an approved inspector. During the construction period, you will pay interest only on the amount disbursed to the builder.
BENEFITS TO BUYING A NEWLY BUILT HOME:
- Customization,
- Modern floor plan,
- Energy-Efficient,
- Low maintenance,
- And added safety and technology features.
Sandmark Construction is a trusted partner of TowneBank Mortgage
Construction loans are available in MD, PA, DE, VA, NC, SC, & FL.
Kaye Jones
Mortgage Senior Loan Officer
NMLS# 94785
Cell: 252-256-1333
[email protected]
Content provided by TowneBank Mortgage for informational purposes only. The information contained herein (including but not limited to any description of lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend. TowneBank Mortgage NMLS# # 512138. Equal Housing Lender