A word about construction financing:

Our customers generally finance their new homes in one of two ways; by cash or by construction loan.

Cash financing is as it implies; paying by cash. Payments are made to the builder as cetain stages of construction are completed. These stages are determined beforehand in the form of a draw schedule.

Construction loans are issued generally by lending institutions. Construction loans are usually closed prior to the start of construction and, like the cash method, payments (draws) are made to the builder upon the completion of certain stages based on a draw schedule. Most times, these loans are interest-only while the home is under construction. If the loan is a construction/permanent loan, it would convert to a standard mortgage upon the completion of the home.

Please click on Finance Terms for more information.