License Number 10280Agents License Number M11000098

Commercial Mortgages

Construction Mortgages

There are many other things to consider as well when planning building your own home. Such as what type of construction financing are you going to need? If you do not own the lot already, a construction mortgage can also be used to help finance the cost to purchase your land, will this be part of the equation? How much will you need of your own equity to get started? Who is going to build your home? These questions plus many more will need to be considered.

The 3 types of New Construction Financing

1) Builder/Contractor built home with your money
Customer has entered into an agreement with a registered builder to build their home. The builder requires Financing Draws.
Mortgage Options: Completion Mortgage or Progress Draw

2) Self-Built Home
Customer wants to act as his or her own contractor. They wish to hire sub trades to complete the work.
Mortgage Options: Completion Mortgage or Progress Draw

3) Builder built home with their money
Customer requires funds when the home is 100% complete. Mortgages on newly constructed homes, town homes, condominiums.
Mortgage Options: Completion Mortgage

Progress Draw example

  • Lockup /Roof Stage / Roof Tight – Approximately 35% to 40% complete. A survey is required by first draw. Framing, doors and windows complete. Sometimes, lenders will allow a draw before this stage at around 15% completion once foundation has been completed. A survey will be required at this stage as well.
  • Intermediate / Lock Up – Approximately 65% complete. Drywall is installed and taped with lighting and electrical rough-ins complete. The furnace and water heater are installed and functioning.
  • 85% Complete – Drywall and all plumbing and electrical are complete, flooring and painting, most millwork complete.
  • Final Advance: Home is 100% complete Home has been inspected and the occupancy certificate has been issued.

For each draw, funds are directed to the Borrower’s lawyer who ensures that the appropriate construction lien holdbacks are maintained (usually 10%), prior to releasing funds to the borrower or builder.

Mortgage Problems

It can happen to the best of us, if you happened to click on this link than you need some help fast.  I have helped many people relieve the stress that comes from lenders and debt collectors.  These types of deals take time to get it done right so that I can put you in the right place and get you back on track.

If you are going power of sale than you need to contact me sooner than later as there are more options available.  Lenders do not want to have to go power of sale because it gets expensive and is time consuming them.  However they will if you give them no choice.  I do not judge and promise to get involved quickly to help you sleep at night.  Another thing to remember is that there is a lot of sharks out there that want to take advantage of your situation.  I am here to help.

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