Building a custom home is a significant undertaking, and navigating the financial aspects requires a strategic approach. At Adair Homes, we're committed to providing you with a comprehensive action plan to your financing needs, from pre-approval to closing. In this week’s Adair Live! Ryan Holtcamp and Gabriella Gately discussed lending—a vital topic for anyone building a home.
Listen to the discussion here, or read on for a short summary of the conversation.
Deciphering Financing: Mortgages vs. Construction Loans
A construction loan is a loan that covers the costs of building a home, from the bare dirt to the final occupancy permit. A mortgage is a loan placed on a finaled home that spreads the cost of the home over 15 to 30 years. As an on-your-lot builder, Adair is able to do both—our customers have the unique advantage of leveraging the equity in their owned land as a down payment towards the construction loan.
When the home is completed and final occupancy permits are granted, Adair Financing’s construction loan can be seamlessly transitioned into a 30-year fixed-rate Fannie Mae-backed loan. Not only that, but Adair is currently offering customers with credit scores of 760 and up, a promotional rate of 4.875%. Have a credit score slightly under that magic number? Don’t fret. We have rates of 5.875% to share with folks who qualify with lower credit scores.
The Adair Advantage:
With a 20-year history of facilitating construction loans, Adair Homes stands out as a reliable partner in your home-building journey. Every year our customers take out an average of 100 construction loans—meaning that we have provided over $100 million in construction lending—underscoring our ability to make your dream home a reality.
Transparency and Upfront Budgeting
At Adair Homes, we believe in empowering our customers with upfront knowledge. Before a shovel ever hits the dirt, we will sit down with you and create a realistic budget for the entire project. Land costs, permits, home construction—every bit of your custom home build is accounted for—plus, we’ll create a contingency fund for unforeseen circumstances.
Building Dreams, One Detail at a Time
Building a home is never a one-size-fits-all project, and neither is financing. Adair Financial has the tools, resources, and history to help just about everyone qualify for lending—whether through Fannie Mae, FHA, or VA loan programs. Step one—let’s talk! Sit down with a lender from Adair Financial and discuss your goals. Step two—get prequalified, and let us help you break down your total project cost. Step three—choose a floorplan, customize it to fit your lifestyle, and get ready to build the custom home of your dreams.
Want to know more about the world of custom home building? Adair Homes' website offers a plethora of resources - from the online floorplan library, to recorded Adair Live interviews and home plan walk-throughs, to live chats with a home ownership counselor. We are here to help you understand the construction planning, design, and financing of a custom home-your custom home.
Whether your land is located in a rural or urban area, our Home Ownership Counselors are proud to assist you on the path to building your dream home. We offer a wide variety of plans, a commitment to value, and guidance in the design process.
If you’re still in the early stages of the homebuilding process, we can help you find land and provide financial services through Adair Financial.