Construction Loans

Home Construction loans are coming back in popularity as lenders ease the restrictions and equity requirements needed to build the new home.   The process for a construction loan is much like a regular home loan, but the lender has to approve the borrower for their credit , and then they have to approve the construction project as a whole.

What do I need?

Sit down and meet with your lender and understand the steps for the construction loan and the down payment required for different types of homes and projects. .

You will need to talk to the county and or City where the land is located and if they do not have a sewer setup, you will need to do a “perc test” for the septic system and see how big of a home can be put on the property and how many bedrooms and bathrooms can be done.  Also you will need to find out about the “setbacks” for the property and where the home needs to be placed.  Many Counties will be require a certain buffer between homes to give enough space.

You will want to then work with an architect firm to have the home designed and a layout completed, the builder will want to see this to know exactly what they are going to be building for you.

Builder: This is where all the numbers come into play and add  the features you want on your new dream home. The builder (general Contractor) will price out what each room will cost, type of materials used even price out the different sinks for the project.

Rehab loans

If you want to buy a home that needs a major remodel or work to get it into living condition before you move in, you may need to borrower some money for those repairs.

FHA has a program called the 203K rehab and Fannie Mae also offers the HomeStyle Revovation loans.

Contact Bruce McLaughlin today to see what would be the best fit for the home you want to buy and your particular situation and he will get your pre-approved today.

253-651-5755

Eagle Home Mortgage

NMLS 70081

email BruceMcLaughlin@eaglehm.com

All page content by Bruce McLaughlin Eagle Home Mortgage 1029 East Main Puyallup WA 98372 NMLS 70081 253-651-5755 Contact me directly for any questions