Can’t Find Your Dream Home? Build It with a Construction Loan.
Trying to find the perfect home that checks all the boxes on your list of “needs” and “wants” can be both frustrating and discouraging. Home buyers often end up compromising because their dream home just isn’t on the market. Most don’t realize that there’s an alternative to the standard mortgage that allows them to build their own dream home.
What Is A Construction Loan?
The Greenway Mortgage Construction Loan Program allows you to the finance the building of a single-family home, whether the home will be your primary residence or second home. The purchase of a property and the cost to build are consolidated into a single closing, which means you only pay closing costs and fees one time.
During the construction period, you save a significant amount of money by making interest-only payments based on total funds drawn until construction is finished. The draw process is simple and flexible with no set schedule. Once the home is complete and the certificate of occupancy (CO) is issued, the loan is modified into a standard loan term at present market rates. At this point, there is no loan requalification, and you pay no additional closing costs.
There are 5 basic components of the Greenway Mortgage Construction Loan Program – builder approval, project approval, credit approval, and construction.
Contractor Approval. Aside from getting you pre-approved for your construction loan, the first and most important step is to approve your builder. While you have the freedom to select a general contractor, we ensure they are reputable by verifying their license, insurance, and a successful history of similar project completions.
Project Approval. This involves reviewing project plans and specs from your architect, cost estimates from the builder, and an appraisal of the home’s value on the property once construction is complete.
Credit Approval. During these first two steps, we’ll work on your credit approval, following the same process as securing a traditional mortgage.
Construction. Once your loan closes, the construction phase begins. A maximum draw request from builder at closing is capped at 10% or $50,000 of the total cost to build, whichever is less. No further draws can occur until closing package has been received and post-closed. For more information on the release of funds please speak with your Greenway Loan Officer.
During construction, the borrower will make interest-only payments on the funds disbursed along with taxes and insurance. When the house is complete, the borrower’s payment will be modified to principal, interest, taxes, and insurance. Mortgage insurance will be activated, and the premium included in the modified monthly payment. This process will not affect those loans for which an escrow waiver is obtained. Please speak with your Loan Officer for more information.
Program Details & Benefits:
- One Set of Closing Costs and Fees
- Interest-Only Payments During Construction
- Primary Residence (1 Unit); LTV 89.99%, Min Credit Score 680
- Second Homes (1-Unit); LTV 80%, Min Credit Score 680
- Lock in your rate at any time
- Simple & flexible draw process
- Use qualified licensed builder of your choice
Eligible Property Types:
- 1-unit site-built homes, PUD, Modular Homes, Rural Properties
- Site condominium (detached); Fee Simple Interest for Land & Dwelling
- Properties where construction has already begun
- Up to 20 acres
The Fine Print:
- Jumbo One-Time Close Construction ARM available.
- Major remodels, tear down, manufactured homes, 2-4 unitis and log homes are not eligible.
Eligibility requirements, exclusions and other terms and conditions apply.
Ask Us About:
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home.
One of Greenway’s past clients turned their dream home into a reality, using our One-Time Close Construction Loan.
The transformation of this home is incredible! Check out the before and after photos here: