For those doing a construction loan with draws, who did you use? Thanks very much!
We used our local Farm Credit office. It was easy & painless as compared with our previous experience with the regular banks.
Hope this helps!
Here is a link that might be useful: Farm Credit Main Website
BB&T - construction to perm, so we only had one appraisal before starting construction and after completion the appraiser came back to see that we build according to the submitted plans. Also, having a local bank meant that we could call for an inspection for a draw and the inspector would come out that day or the next. And draws would occur the day the inspector came or the following day. The bank was really a pleasure to work with.
We used our small local bank. Great service, great staff. We've bought several new homes in our 47 yrs of marriage, and built several custom homes. Best service ever was at our local bank. Rates very competitive.
Another happy Farm Credit customer here. Low construction loan rate and will rollover to fixed loan.
We also used Farm Credit. We would highly recommend them, it was fast and they have great rates.
Is Farm Credit financing only available to Farm or 'rural' builds?
Currently I'm planning on using USBank, they have great rates for during construction (3.25-3.75) however it is an ARM so it is necessary to refinance into a 30 year with reasonable fees.
I can not find any local banks in my area (Northern California) offering a 30 year close at the end of a construction loan. One of the construction loan/broker sites offered an option with a national bank (no idea which one) but the interest during construction was high at 4.75% and after construction the rate would be set on whatever the market is at the time, or 5.25%, whichever is lower.
The problem with that option (in addition to the higher interest during construction) is that since I can only find it through a broker the fees are high, so high in fact I could get the US Bank loan, and then refinance into a permanent loan and possibily spend less!
you are assuming at the end of the process, you will have enough equity in your new build to be able to refinance. That may not be the case.
Regarind equity to refinance, forgive me for being dense, but the only way that would happen is if we were to appraise lower than our cost to build, correct?
I don't expect in our area that will be a problem. Actually, our fear is that it will appraise too high affecting our property taxes! Most of the houses in our area are selling for more than our cost to build.
For the 30 year option I outlined above, the fees upfront are nearly double (close to $20,000 since I can only find a "consultant" offering the rate and not the actual bank). Between that and the higher interest rates during construction it hardly seems worth it. Though, if I found a better deal I would jump on it! There isn't a farm credit option near me, and I'm having trouble finding any other options.