Welcome to New Homes, a biweekly column highlighting the new construction real estate market, written by Conor Sullivan and Dave Moya of Three Stones Residential at Keller Williams Realty. We are here to share our experience and expertise in lot acquisition, financing and construction of custom homes.
First, we need to understand who the top builders and influencers are that are reshaping our communities…
Deciding to build your own custom home does not need to be scary, nor does it have to be stressful. However, it does mean you will have to make a ton of decisions from insulation type to lighting fixtures, door trim, and dozens of other areas. That is why finding the 3 “R” are critical to success and happiness when building a new home.
Right Builder, Right Time, Right Lot.
Meet the Lender: Andrew Siddon of George Mason Mortgage
What are some of the key differences between a construction to permanent loan versus a traditional conventional loan?
Construction loans typically require a higher credit score and down payment than a conventional loan. George Mason Mortgage does offer a one-time close construction loan with a 10.1% down payment. Conventional loans are available with no down payment.
What are some closing cost differences in Construction to Perm vs. Conventional?
Construction loans typically carry higher closing costs compared to conventional financing. The increased closing costs are associated with the lender, title company and county.
How long does the construction loan typically last? If it expires and the construction is not completed what happens?
Typically, construction loans provide a 12 month construction period. Should the construction period exceed the 12 month construction period, extension fees may apply.
How does the construction loan fund to the builder?
Once a predetermined level of progress is made, the builder will request a draw from the lender. The lender will send out an inspector/appraiser to verify the work has been completed. Once verified, the lender will wire the funds to the builder.
How do interest rates vary from the construction to the permanent loan and is there any principal paid during the construction period?
Most one-time close construction loans provide the same rate during construction as they provide once the construction is completed. During the construction period, the payments are interest only and the client would only pay interest on the funds disbursed at any given time.
Here are some new homes now on the market in Arlington:
- 705 N. Barton Street, Arlington — $1,795,000 — 3,650 sq. ft.
- 2320 N. Vernon Street, Arlington — $1,850,000 — 4,282 sq. ft.
- 3871 30th Street N., Arlington — $2,250,000
- 3116 N. Nelson Street, Arlington — $2,599,333 — 7,136 sq. ft.
- 3516 N. Valley Street, Arlington — $2,799,900 — 7,066 sq. ft.
Three Stones Residential specializes in matching home owners with the right builder and lot location. If you have any questions about new homes or builders that you’d like us to highlight please email us at [email protected].
