Construction 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.