austin construction mortgageConstruction mortgages are one of my favorite aspects of my job. Building a new custom home or remodeling your current home is a fun experience. You are building your dream. If you are looking for a smooth construction mortgage experience,  you’ve come to the right place. I have almost 20 years of custom construction loan experience to help you with your project.

Before calculating the loan amount, we need a basic budget. The main components of construction loans that are included in the budget are:

  • Soft costs (architectural plans, engineering, and permit fees).
  • Hard costs (all the actual physical costs of construction).
  • Closing costs (origination and lender and title and closing fees).
  • Inspection fees.
  • Reserves (interest reserve and contingency reserve).
  • The existing lot pay-off.

Regular purchase money or refinance mortgages are based on the Loan to Value Ratio (LTV), whereas construction mortgages are based on the Loan to Value (LTV) and Loan to Cost (LTC) Ratio. Also, we will handle closing costs differently: construction loans usually include closing costs. In a typical home purchase, closing costs are added after calculating the Loan to Value. Additionally, I will need specifications, plans, and a builder contract.

Each investor/lender calculates the numbers differently, as different banks have different guidelines. This fact further complicates construction mortgages. I navigate the waters to guide you through any issues and constantly contact construction lenders to ensure all is well.

I am very comfortable and knowledgeable about the guidelines of construction mortgages offered by most institutions. As a result, I can guide you to a program that best suits you and your project. With approved investors, customers experience loan costs that are generally better than if they had applied directly.

Remember, home construction mortgages are a specialized field. As such, you work personally with Joel from the moment you apply. We will work with you from the beginning until the day you move in, making the process smooth and seamless.

© Joel Richardson. All Rights Reserved. | This website is operated by Joel Richardson, who is currently an employee of VeraBank, N.A. (“VeraBank”) The views expressed on this website are not necessarily those of VeraBank. This website also has its own privacy policy, which may differ from VeraBank’s privacy policy. VeraBank makes no express or implied warranty regarding the information or data on this website, and hereby expressly disclaims all legal liability and responsibility to persons or entities who use or access this site and its content, based on their reliance on any information or data that is available through this website. Joel Richardson has sole responsibility for the information and data on this website. Deposit and loan products described on this website are offered through VeraBank, Member FDIC. To visit VeraBank’s website, here.