Construction loan options! Use our quick & easy tools to qualify!
Understanding Construction Loans In 2020
Written By: Travis Carter : Construction loans
Step 1 - Get Prequalified
Step 2 - Apply For a Construction Loan
Step 3 - Choose a Builder
Can I get a construction loan without a down payment?
What is the required down payment on a Construction loan?
Buying New Land
The three primary loan types available for new construction are FHA, Fannie Mae, USDA, and VA construction loans.
Construction Loan Inquiry
FHA Construction Loans
FHA construction loans are the most popularly used construction loans. FHA requires a 3.5% down payment and low-interest rates. FHA requires an upfront mortgage insurance premium to be paid at closing. The mortgage insurance can be financed in the loan and will not result in additional out of pocket expenses.
FHA will allow 6% builder paid closing costs. If the construction contract is written to include builder paid closing costs, you will not need to pay for closing costs out of pocket.
VA Construction Loans
Conventional Construction Loans
Conventional construction loans are the most commonly offered construction loan program. Conventional loans require a larger down payment than the Government-backed home loan options. Typically 20% down is required to close on a Conventional construction loan. Although the loan terms of a Conventional loan can be great, it is not a popular choice among first time home buyers.
The down payment on a Conventional loan is calculated like the FHA or VA home loan options. Gifted land and owned land can be used towards a down payment, however, if the value of the land does not exceed 20% of the total cost to build, you will be required to bring money to closing.
To contact us and discuss your construction loan options, give us a call at (518) 324-5544
What are the requirements for a construction loan?
The credit score required for a new construction loan is different than a standard home purchase. Most banks have “Overlays” that require a higher credit score beyond the loan programs minimum score requirements.
The Plattsburgh Mortgage team can finance a new construction loan with a credit score as low as 640. We offer construction loans in all 50 states. Our most common areas for new construction are South Carolina, North Carolina, Florida, Virginia, Maryland, Delaware, New Hampshire, Massachusetts, New York, Vermont, Maine, Pennsylvania, and Rhode Island.
Our lending team has intimate knowledge of constructing lending in your area.
The Construction Appraisal
How Long does it take to get approved for a Construction loan?
Receive home loan news and learn tips to purchase your first home
MLB Residential Lending, LLC has tried to provide accurate and timely information; however, the content of this site may not be accurate, complete or current and may include technical inaccuracies or typographical errors. From time to time changes may be made to the content of this site without notice. MLB Residential Lending may change the products, services, and any other information described on this site at any time. The information published on this site is provided as a convenience to visitors and is for informational purposes only. You should verify all information before relying on it and decisions based on information contained in our site are your sole responsibility. If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at (518) 324-5544. This contact information is for accommodation requests only.
Equal Housing Lender. NMLS # 1101220