Construction Loan? What company did you use?

farmhousegirlApril 9, 2012

For those doing a construction loan with draws, who did you use? Thanks very much!

Thank you for reporting this comment. Undo
mydreamhome

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

    Bookmark   April 9, 2012 at 4:52PM
Thank you for reporting this comment. Undo
dekeoboe

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.

    Bookmark   April 9, 2012 at 6:52PM
Thank you for reporting this comment. Undo
joyce_6333

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.

    Bookmark   April 9, 2012 at 7:16PM
Thank you for reporting this comment. Undo
farmhousegirl

Thanks all!

    Bookmark   April 10, 2012 at 8:47PM
Thank you for reporting this comment. Undo
motherof3sons

Another happy Farm Credit customer here. Low construction loan rate and will rollover to fixed loan.

    Bookmark   April 10, 2012 at 9:31PM
Thank you for reporting this comment. Undo
A.Davis

We also used Farm Credit. We would highly recommend them, it was fast and they have great rates.

    Bookmark   April 11, 2012 at 10:50AM
Thank you for reporting this comment. Undo
pbx2_gw

Is Farm Credit financing only available to Farm or 'rural' builds?

    Bookmark   April 11, 2012 at 12:09PM
Thank you for reporting this comment. Undo
auroraborelis

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!

    Bookmark   April 11, 2012 at 12:20PM
Thank you for reporting this comment. Undo
kirkhall

@Laura
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.

    Bookmark   April 11, 2012 at 4:41PM
Thank you for reporting this comment. Undo
auroraborelis

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.

    Bookmark   April 11, 2012 at 5:43PM
Sign Up to comment
More Discussions
Can I get a closet in/next to an 8'x8' ensuite bath?
I have 8'x8' inside the walls for a bath, and I'd like...
edwardshome
Please help critique this floor plan.
Hi all. We are hoping to break ground within the next...
daboyd4
Front Entry door
I am totally out of my comfort zone on the one! We...
3ilovepie
Good Portland-area security company?
I am trying to find a reputable company that can advise...
garrai81
Please review my plans - help needed with bedroom arrangement
Hi folks! This is the second time I have posted our...
Momto3kiddos
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™