What’s Up Wednesday: Building a Custom Home Off-Site
From their Rockport Community in the Kitchen of the Tuscany home.
We did just announce the winner of our Harry J’s gift card.
If you missed it, Trudy, you’ve won the $100 dollar Harry J’s gift card
It’s completely different if you’ve never even looked into a custom home build. It’s not as easy as everybody thinks, as far as the financing side to it.
USDA loans do not work for off-site construction, you need to obtain a construction loan for that and that is typically done through a bank or a credit union.
It requires more money down and higher credit scores are needed.
Banks are looking for at least 20% down. Some folks have that from the sale proceeds of selling their home. However, we can’t get started until you have that 20% down.
The way construction loan works are different from the loan products that we do in our communities.
It’s a disbursement loan and It’s held in a title company, that way it’s with a neutral party.
Once we are ready to break ground, we can request the first disbursement.
It allows us to get in there, excavate, connect laterals, throw in the foundation, and then once we show proof that that’s been completed, we ask for the second disbursement. Then you as the buyer are paying interest only on that note until the end of the construction bill.
You’re not paying a regular homeowner payment but you are paying interest while that’s going on.
It doesn’t work that way ’cause we need your okay to send out the next disbursement.
At the end of the day, just easier to build in our community over a custom home build off-site.
Then you don’t have to have that 20% percent down, you give us the earnest good faith money at the beginning of the contract, and we don’t see another dime until it’s the closing day.
You have that five months fill the time that you can either save for your down payment.
Closing costs, things like that, It’s so much easier.
Watch the video to learn more.
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