Financing is one of the top questions when we are speaking with our clients on building one of our main level living, Pioneer Point Villas. Each of our clients has a unique financial position and will affect how they proceed with the build process. An extra benefit of building with Michael Lee Inc is that they have the expertise to guide you on the process and have a team to help with your decisions. Our team includes Adam Will with Tradition Mortgage, as our preferred lender. Based on your needs, he can provide you all of the details needed to finance your build or recommend self-financing if your finances allow it. Here are the most common options for your build financing.
One-Time Close New Construction
Single-loan closing is the most cost saving and borrower beneficial loan process over a traditional construction loan. This type of construction loan, includes the borrower obtaining the financing through Tradition Mortgage and having only one closing up front within 30 days of an executed purchase agreement. This loan allows the borrower to get the best interest rates vs the builder obtaining the loan at a higher interest rate and the best part, only one set of closing costs and loan documents to complete. During the one-time close new construction loan, the loan is modified at the end of the construction process into a fixed-rate permanent mortgage. Benefits include low interest rates during construction and low down payment requirements.
A “bridge loan” could be an option as a short term loan taken out by a borrower against their current property to finance the purchase of a new property. It is typically good for a six month period, and can extend if needed.
Many of our clients, have the assets at their disposal to considering financing the build on their own. By self-financing, the advantages include no qualification for loan issues, avoiding loan interest and having the peace of mind of no debt or future mortgage payments. If self-financing, Michael Lee Inc. requires all invoices to be paid through the title company as they will collect lien waivers to protect your best interest. Our preferred title company is Custom Home Builders Title, which strives to be the best in customer service for our clients.
Our current clients have been happy with the process and we are positive that you will have the same experience working with the Michael Lee team. Pioneer Point is a great community, so don’t let the concern of financing stand in the way of your dream villa. Reach out to Kristy Esty to learn more about our financing and/or the Pioneer Point community in Woodbury.