Financing Your New Home with one of our recommended construction loan lenders.
Construction loans are the foundation of the owner-builder plan. That's why we're providing this special section that spells out the "nuts and bolts" of the construction loan plans available. Please read it carefully.
A Review of How Owner-Builder Programs Make Home Ownership Possible for You Right Now
- Without a large down payment our recommended construction loan lenders can finance the construction of your new home and your land purchase.
- You keep construction costs low by acting as project manager and doing some of the work yourself.
- Our owner-builder program provides you with construction support throughout the process. Because of this, your finished home can be worth more on the market than it cost you to build it. The difference between what you spent and what the home is worth is "equity".
- Equity can take the place of a large down payment, and then you can obtain permanent financing -- a mortgage -- from a bank or other lending institution.
- You use the money the bank loans you to pay back the money you borrowed on your construction loan.
Financing Your land
- Getting a loan to buy land isn't easy. In fact, many lending institutions won't loan money for land at all.
- Those that do, often require a down payment equal to half the land's value. That's money you could use to build your home!
- Our recommended construction loan lenders offer a land/home package and if you own your own land then your land can act as your down payment for your construction loan. In this case you can get 100% financing to purchase building materials and pay for laborto complete your home.
BuildMax recommended construction loan lenders offers construction loans with 30% down.
*Permanent financing available upon completion of your home, by various lenders.
Financing the Construction of Your Home
Our recommended lenders offer construction financing programs which offers you these advantages:
- Plenty of time to build your home
- The funds you need to finance your land, materials and labor
The Power to Change Your Life. Unique financing plans make your new home possible.
The financing is available through a variety of nationwide lenders. You receive the financial support you need to build your home and save on construction costs.
You and your New Home Consultant work together not only to recommend you a reputable construction lender, but also to position you for competitive, permanent financing once your home is complete. The plan works this way:
- Land -- You may already own the land you want to build on. If you don't, BuildMax will help you locate financing.
- Materials -- We recommend lenders that will finance the cost of the materials needed to complete your new home.
- Labor -- Our recommended lenders will finance the labor costs for subcontractors you select.
- Equity -- The most important feature of owner-involved-building programs. Since you're the project manager, you can save thousands of dollars by eliminating the expense of the general contractor. So, by following the owner-involved-building plan, your completed house should be worth more than it cost to build. That difference between what your house is worth and what you owe on it is called "equity." We call it "sweat equity," because you earned it yourself. And it's your "sweat equity" that's your key to permanent mortgage financing.