What Are My Financing Options?
What are my Options? How are you paying for the new home you're about to build.
Loans to build a Beracah Home – are just as traditional stick-built homes. Modular homes also qualify for traditional loan options.., such as an FHA loan, VA loan, USDA loan, or Construction Loan. There are several key factors to keep in mind when obtaining financing for your new Beracah Home, and we would be happy to help you more. Beracah does NOT provide financing – we DO work with several lenders in the area who can assist you in financing your project.
FHA Loans are insured by the FHA and are the best choice for borrowers who don’t have a large down payment or less than perfect credit. Some of the perks of FHA loans include a low-down payment, 30-year loan terms, and low interest rates.
VA loans are modular home loans designed for veterans. Many lenders offer these loans to qualifying veterans with a certain credit score. Some VA loans can cover 100% of the loan cost, which means $0 down payment.
The US Department of Agriculture (USDA) offers a type of home loan similar to the FHA loan called the USDA loan. This loan is meant for rural development and is guaranteed by USDA, which allows lenders to offer more favorable terms. Also, USDA loans do not have a down payment requirement and will loan up to 102% of the home’s value.
CONSTRUCTION TO PERM(anent) LOANS
Construction loans are combined with either an FHA or conventional (permanent) loan. The construction loan terms are in place during the construction period, which is usually 4-6 months. Then, these are changed to the terms of the FHA or conventional loan once the construction is done. As a result, lenders will either do a one time or two time close. A one-time close requires only one closing, and when construction completes, the terms are modified to the permanent loan. A two-time close requires closings on both the construction loan and the permanent loan. The construction loan is paid out in draws to the contractor as the project progresses.
Cash is always King... but please don't bring Cash!