Construction Loan

In order to begin work on your new house, you must obtain a construction loan. A construction loan, simply put, is a sum of money that your builder draws from in order to pay for building costs as construction is going on. Construction loans, in contrast to mortgage loans, are meant to be short-term loans, and many people “roll” the construction loan into their mortgage through a loan known as a construction-to-permanent (or construction-perm) loan. Construction loans have different terms than regular mortgage loans, and banks usually have somewhat stringent requirements for borrowers to qualify and for builders to draw money from the account. As with any kind of loan, it’s very important to understand what you’re paying for and how you’re paying for it. Be sure to contact a qualified construction loan specialist to discuss your options.

Lot Financing

A construction loan pays for the building of your house, but what about the land? You can either purchase a lot on your own or you can work with us to choose an ideal lot for the home you want to build. This is highly recommended. Buying a lot is much like purchasing an existing house in that you will most likely obtain a mortgage for the property. This loan can also be rolled in to your construction-perm loan. Be sure to check with us for our current lot inventory — we may have a lot that’s ideal for building your house. The lot selection checklist provides information regarding what you need to know about an ideal home site and what factors could lead to additional costs.

Contact Us

If you have any questions at all about financing or lot selection, please don’t hesitate to contact us. We can answer your questions and connect you to some of Tallahassee’s finest loan officers and real estate agents who can help you obtain financing and find a perfect location for your new home.