STEP by STEP

A guide for the One-Time Close Construction Loan Site Built Modular & Manufactured Homes

 

Step 1:  Preliminary Research

  • Decide type of home you want to build ( Site Built, Modular or Manufactured ) and where you want to build.
  • If pruchasing land, search around for available land costs.
  • Visit a builder, or a modular/manufactures home dealership to get some ideas on size, floor plans, options and costs.           

Step 2:  Get Pre-qualified

  • Go to https://swhitt@gemcorp.com to fill out a loan application.
  • APEX Lenders will then pull your credit report.
  • Your loan consultant will provide you a list of documents required for the pre-qualification.
  • Additional information may be required and additional credit conditions will apply.

Step 3:  Pre-qualification & Project Budget

Once your loan consultant has the required information, and has determined credit worthiness, you will receive a pre-qualification letter. You will need this letter for your land purchase offer, if applicable. Your Loan Consultant will also review total project budget.

THE FOLLOWING FEES/COSTS ARE INCLUDED IN YOUR CONSTRUCTION LOAN:

  • Closing costs.
  • Prepaid property taxes and homeowners insurance.
  • Construction soft costs ( Draw inspection fees/costs ).
  • Construction interest ( Interest during construction ). Used for interest payments during construction process. Therefore, no payments required by borrower until completion of project.

Your Loan Consultant will deduct these fees/costs from your total loan amount and send your builder or modular/manufactured home dealer a budget for their maximum contract amount, plus the price of land, if applicable.

Step 4: Owned Land or Gifted

  • Copy of deed, copy of closing statement if purchased within one year. If land is currently financed, we will need contact information for note holder.
  • If land is gifted to you, we will also need a gift letter and copy of survey.

Step 5:  If you are buying the land

The land does not have a separate closing. The land contract is closed and funded aling with the construction contract. However, your loan consultant will need to talk with your real estate agent before an offer is made.

LAND CONTRACT CONTINGENCIES:

  • Minimum of 90-day closing of escrow 
  • Minimum 60-days for appraisal contingency.
  • Minimum of 45 days for inspection contingency.
  • Title & escrow company is buyer's choice.

>>NOTE: Land seller must be flexible for extension if needed.

Send executed land contract and any Addedums to your Loan Consultant once your offer is accepted.

Step 6: Working with your Builder/Home Dealer

Work with your builder/home dealer to finalize the complete designs and cost of your home construction, plus all land improvements including building permits, grading, foundation,,, utilities, etc.

>>NOTE: This process could take several weeks or months depending on the complexity of your project.

Builders/Home Dealers typically require a deposit for the home and advance payment for preparing the site construction estimate. In some situations, part or all the permit fees will need to be paid prior to closing.

>>NOTE: Any money you pay out-of-pocket towards the project can possibly be credited towards your downpayment.

Once the numbers are 100% final, the builder/home dealer will send Golden Coast Mortage the cost of the home and the cost of all site construction. Your Loan Consultant will calculate all your loan fees/loan costs as mentioned in step 3. All the loan fees will be added to the builder/home dealer's contract.

Step 8:  Project Completion & Loan Payment

  • Once all construction is complete, your loan interest rate may be modified to a lower rate depending on the market rates at that time; however, it cannot increase from when it was locked at closing.
  • An Occupancy Permit will begin making monthly mortage payments 30 days after.