It is not always easy to find your dream home; sometimes you have to build it. After analyzing your financial options, have you decided building a home is the route you want to take? Great, we are here to help! The foundation isn’t only the beginning of a new home, but also the start to your homeownership journey. This blog will help build your knowledge of our construction program from the ground up!
With a Union Home Mortgage Construction Perm loan, you are able to finance both the building and the purchase of a new home. This loan is processed similarly to other traditional loans; however, the appraisal is based on your building plans. At closing, closing costs and down payments are paid, but the remainder of the money is held in an account and dispersed to the builder during the construction of your home. Any funds to complete the land or lot purchase are also paid at this time.
In addition, with the Construction Perm your first payment is set for a fixed time down the road, so you will not need to make full payments until the house is finished being built. Instead, you will receive a monthly bill for interest based on how much of the loan funds have been dispersed.
But wait,that’s just the framework – check out some more benefits of a Construction Perm loan below!
- You only have to pay one set of closing costs covering the build and the purchase instead of two separate closing costs.
- This loan is relatively inexpensive during the construction period because you do not begin making payments until the home is finished being built.
- You do not run the risk of interest rate increasing.
- No unexpected fees.
- Term options available.
If you are looking to build your new home, the Construction Perm could be the perfect fit for you. Interested in learning more? Reach out to a member of our Housing Buzz team today for more information or to take a look at your financing options!