The first step on the path to your dream home requires consideration of financing. How will you finance the construction process or a long-term mortgage? In today's economic environment, those seeking residential construction loans may face more stringent requirements than before. But with experience and guidance, you can still succeed.
Camerata carefully selects its financing partners based on their integrity, trustworthiness, expertise and quality of service. We want our clients to receive thorough and fair information. We also want you to be able to choose the financing that will best meet your unique needs.
Camerata Homes is prepared to help you through the challenges of developing a budget and obtaining financing for new construction. To obtain the best financing options, you may chose to let us assist with your mortgage professional. Purchasing or refinancing your home is perhaps the largest financial decision you will ever make. With such an important decision at stake, it's imperative that you have trust in the individual and institution conducting your transaction.
Purchasing or refinancing your home is perhaps the largest financial decision you will ever make. With such an important decision at stake, it's imperative that you have trust in the individual and institution conducting your transaction.
About Construction Loans
Constructions Loans differ from regular mortgages or refinance home mortgages in the way the loan amount is calculated and the way it is structured.
To calculate the loan amount, we begin by identifying the basic budget. The main components of construction loans included in the budget are:
- Soft costs (architectural plans, engineering and permit fees)
- Hard costs (physical costs of construction)
- Closing costs (origination, lender, title and closing fees)
- Inspection fees
- Reserves (interest and contingency reserve)
- Existing lot pay off
Regular purchase money or refinance mortgages are based on Loan to Value Ratio (LTV) whereas construction loans are based on LTV and also Loan to Cost Ratio. Furthermore, in a standard mortgage, closing costs are added after calculating LTV, whereas a construction loan usually includes the closing costs.
Construction Loans may be complicated because each investor/lender calculates the numbers differently. We do our homework from the very beginning to ensure you avoid any "last minute" unpleasant surprises.
The Camerata Team's familiarity with the guidelines of construction loans offered by most major institutions makes it possible for us to help you choose the program that best suits you and your project. In fact, since we work with approved brokers, the cost of the loan to you is generally better than if you apply directly.
Residential construction loans are a specialized field. We work with you from the very beginning until the final closing, making the process smooth and seamless.