SINGLE FAMILY NEW CONSTRUCTION FINANCING OPTIONS TYPICALLY FALL INTO 3 CATEGORIES.
1. Self-Build Home
Self-Build Home is when you act as your own contractor; hiring subcontractors to complete the work. Your mortgage options are: Progress Draw Mortgage, Completion Mortgage
2. Self-Build: Builder/Contractor (turn key):
Self-Build: Builder/Contractor is sometimes referred to as Turn Key. This is when you enter into an agreement with a contractor to build your home. Typically, the builder will request Financing Draws. Your mortgage options are: Progress Draw Mortgage, Completion Mortgage. It’s important to choose a contractor that is reputable with a solid track record (resume) of previous projects.
3. Buying from a Builder (take out)”:
Mortgages on newly constructed homes, town homes, condominiums. Client requires funds when the home is 100% complete (will require the final occupancy permit in place). We have a wide variety of mortgage products on our “shelf” that you can choose best suited to your own unique situation.
Building your dream home could be one of the most rewarding experiences you ever undertake. So how can you finance building your own home?
A self-build mortgage is exactly what it says, a loan you secure to finance building your own house. With a self-build mortgage the money is released in instalments, typically with an initial loan to buy the land. Payments are then made at different stages of the build.
The key to a successful build is to understand the steps involved, and to follow through with the many details involved in building a home. From the first idea to the finished project, planning ensures you have your bases covered.
We have a deep understanding when it comes to development loans as that has been an area of focus for the PNW Mortgage team.
Whether it be a parcel of raw land, or a site that is “shovel ready,” we have funding sources that can help in each of those cases. We specialize in funding townhome/condo land acquisition loans
We understand how the application process works with the various municipalities of the lower mainland, with most of our funded deals falling in:
We work with lenders who can approve these types of deals with the following terms:
Up to 75% on land acquisition (when shovel ready, 60% to 70% for raw pre-development)
75% to 80% of hard and soft costs funded
Flexible draw system
Interest only payments
12 to 36 month terms
Rates ranging from 3.50% to 6.50% (P+0.30% to P+3.30%) depending on deal quality
Please give us a call for a no obligation quote for any land holding, or development deals.