What's a Construction Loan and Why Do You Need It?
One of the things we hear from prospective clients over and over again is questions about how to finance their new home. Unlike traditional loans, when you build a new house, you need to have a construction loan to finance the build. The good news is, it doesn’t have to be complicated! We make affordable home financing easy.
What Is a Construction Loan?
A construction loan is interest-only payments made to the lender during construction. The bank withdraws periodic payments to be sent to the builder once they hit certain milestones during your build. Once construction is completed, the loan converts to a regular mortgage. It’s important to work with a reputable builder that has a strong relationship with the bank, which is why it’s important that Wayne Homes has a close partnership with Home Savings.
How Does It Work?
So, you’ve found the perfect lot–great! Now, what? You can actually combine the price of your land with the construction costs, so you only have one loan and one set of closing costs. Homesite allowance items can also be added to a construction loan that will cover the costs of land improvements, such as a driveway, well and septic costs or water and sewer costs, landscaping, etc. So, your construction loan can be one set of numbers for your entire project!
Work With a Preferred Lender
We carefully selected a preferred lender who not only understands on-your-lot custom homebuilding in general but who is also completely familiar with the Wayne Homes approach to customer service. Our preferred lender is Home Savings, and working with them greatly simplifies the whole financing process and provides you with a smooth, seamless home buying experience, which is what we all want.
Homebuilding Made Affordable
Home Savings offers a great construction loan that automatically converts to your permanent mortgage once your Wayne home is completed. You can get started with just 5% down*. For more information, contact the loan officer that serves your area.
Still have questions? Contact us and we will be happy to field any questions you may have about construction loans or connect you with a loan officer in your area.
About Wayne Homes
Wayne Homes is a custom homebuilder in Ohio, Pennsylvania, Michigan, and West Virginia (see all Model Home Centers). We offer over 50 fully customizable floor plans and a team dedicated to providing the best experience in the home building industry. For more information, Ask Julie by Live Chat or call us at (866) 253-6807.
