There are a few situations that might lead you to choose a builder loan (commonly known as a construction loan). You don’t need to build an entirely new structure on undeveloped land. Home builder loans are also available to qualified borrowers who want to use the equity in their home to build a garage or who have just purchased a second home for additional income and want to renovate the interior. The right lender can even help you use any pre-existing equity in the property to fund a complete teardown and rebuild.
Look for a lender specialized in Builder Loans
Because owner-builder construction loans represent an additional risk and require additional manpower (especially during the construction period), some lenders choose to not offer owner-builder construction loans. No matter what your plans are for your family’s home, and no matter where you are in the process, consider speaking with a construction loan specialist if you’re seeking builder financing for your next home.
A loan officer at The Federal Savings Bank can help you estimate the builder loan options that best suit your financial situation (prior to checking your credit score). Our team of construction specialists is invested in helping American families achieve their homeownership dreams, whether you’re seeking to build a cozy log home or want to take out a high-balance builder loan.
Ask About a First-Time Home Builder Loan
If you have never owned a home before, many lenders offer mortgages guaranteed by the U.S. Fair Housing Administration (FHA). These programs are designed to help make first-time builder loans accessible to American families and are similar to those available to qualified borrowers through the Department of Veterans Affairs.
Overwhelmed by options? Unsure where to go from here? Your loan officer can help guide you step-by-step through your home loan journey. No need for guesswork – we’ve got your back. Contact us at 877.788.3520 to get started.
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
