FINANCING YOUR HOME
Ready to start construction for your new home but not sure where to begin? We're here to help!
Building a new home one is of the most significant investments you'll ever make. While you can always pay cash for your new home, many buyers choose to finance. If you already own land, the good news is, you may be able to use land-equity in lieu of a cash down payment! If you plan to finance your Build On Your Land purchase, we highly recommend you obtain a Construction to Permanent Loan, which offers the ease and convenience of a one-time loan closing.
For more information regarding the Construction to Permanent Loan process*, see below!
ABOUT CONSTRUCTION TO PERMANENT LOANS
Most of our buyers use a Construction to Permanent loan to finance the purchase of their new-construction Build On Your Land home. This loan provides financing for both the land and the home and you will have the option to amortize this loan for up to 30 years. Whether you own the land or are financing the land, you can finance your home purchase with this convenient loan.
The Construction to Permanent loan approval process is similar to that of the standard mortgage loan process. The lender will review credit history and credit score and you'll be asked to provide documentation listing your income, assets and liabilities. The typical credit score required to gain approval for a Construction to Permanent loan is a minimum of 680, however, this may vary per lender.
Because your lender may need to review plans, specs and the Construction Agreement you have with Keystone prior to loan approval, the Construction to Permanent loan approval and closing process can take anywhere from 30-45 days. However, the sooner you provide your lender with the necessary documents, the sooner you'll be approved and construction can begin!
CLOSING THE LOAN
Both you and your builder are responsible for signing documents in order to keep the process moving. Once all documents have been signed, funds will be issued in "draws" throughout the process. After construction loan closing, construction begins! During the construction process, you will be responsible for making interest-only-payments on the monthly loan balance.
TRANSFERRING TO A PERMANENT LOAN
Once construction of your home is complete, your lender will disburse the final "draw", the final inspection is completed and the Certificate of Occupancy is issued. Once all of your construction payments have been recieved, you are ready to move-in and, shortly after, your loan will begin transferring to a permanent loan. Upon completion of the transfer process, you will begin making your monthly principal and interest payments.
*The process presented here by Build On Your Land by Keystone Homes is a general sample of the Construction to Permanent Loan process. The process may differ depending on the lender used.
TOP MORTGAGE LENDERS
QUESTIONS REGARDING FINANCING?
If you are a Keystone homeowner, trade partner or vender and have a friend or family member who you think would be interested in building on their own land, be sure to refer them to us and earn $ for your referral!