Construction Loans - Construction Lender
At Alpine Mortgage, we offer construction financing in New Jersey. Whether you're planning to build your dream home or just thinking about it, we can help. We can answer your questions, and guide you through the loan process. We'll be with you every step of the way from framing your front door to turning the key.
We're residential construction lending experts. We can answer your questions and your builder's questions so your project keeps moving smoothly from groundbreaking to housewarming. Our Construction-to-Permanent loan is based on ordering an appraisal based on the future value of the home. That's right I said future appraised value of you home. The construction loan is based on the actual cost which can include the purchase of the land.
Our Construction-to-Permanent Loan is a one-time close loan. This means ONLY one application, and you’ll get all the financing you need in one easy process. Our construction loans are available for properties in New Jersey only.
What is a Construction-to-Permanent (CTP) Loan?
Often, getting approved for a construction loan at most banks can be tricky. In many cases, two loans are required--one for construction and one for permanent financing. Usually you will have to pay closing costs on both loans, not to mention the extra paperwork, time and hassle involved. But at Alpine Mortgage, we offer a single-close Construction-to-Permanent Loan that combines both construction and permanent financing into one loan. A Construction-to-Permanent Loan allows for a construction period of 6 to 12 months sometimes more. Other options are also available. When your project is complete, the loan simply converts to a permanent mortgage – no extra costs!
You only need to qualify one time which means only having to chase down documentation once compared to the typical process where the customer is qualified, the builder builds the home, then the lender requests documentation all over again to make sure the customer still qualifies. With the CTP loan, having qualified at the beginning of construction, the customer can shop for new furniture, buy a new car, change jobs, whatever they choose because they are already approved and do not need to be approved all over again 6 months to a year later! To help you manage your budget a little easier, you'll pay only interest on the money you've drawn. That means your payments will be less than they will be if you were paying principal, as well.
When will disbursements be made to the contractor?
The builder will be paid as quickly as he can build the house. There are generally 4-6 disbursements made during the course of construction, although more disbursements can be set up on larger projects, fewer on smaller ones. As each level of construction is completed, an inspector will come out and verify the work. Within 3-5 days of his verification, the funds are over-nighted or wired to the builder’s account.
When will I have to make loan payments?
With our lender Construction-to-Permanent Loan program includes an interest reserve, which means that you will not have any payments out of pocket during the construction period. An interest reserve account will be incorporated within the loan amount. Depending on how quickly you use your construction funds; there should be sufficient funds within the construction loan to carry you through the entire construction period.
PRODUCT UPDATE: Alpine Mortgage has suspended our construction loan program. We will update this page when we are accepting new applications for this program.
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