Jerry Thomas's (constructionloan) Blog

https://www.annualcreditreport.com. It's the site Experian, Equifax and TransUnion had to set up so we can all run one totally free credit report per year.If you're working with a buyer that is at all concerned that they might have a credit issue, have them run their own report there. Don't let t...

Update-As I write this, current interest rates are up significantly. This makes this blog even more important than what it was back in 2018. With mortgage interest rates on the rise it's becoming very important for every Realtor to understand the potential benefits of assuming the seller's curren...

So how do you appraise a home that isn't built yet? This is a question I get quite often when I speak to potential clients about construction loans. The answer is, plans and specs.The appraiser will be given a copy of the legal description for your land, so they will know where you're building. B...

So you have your floor plan, you have your builder, you know what city/township you want to live in, all that's left is to find that perfect lot to build on.First, you need to be realistic about what you can afford and what's going to fit your program and down payment. If you are paying cash for ...

It is so important that you borrow enough money to complete your home. Pretty simple concept, huh? Yet from time to time clients that have already closed on their construction loan call me up and say, "I need more money". Maybe they upgraded an element of their home. Maybe a contractor underestim...

To apply for a construction loan you will need all the documentation that you need for any other type of mortgage application;*Income- Most recent 30 days of pay stubs and last 2 years of W-2's. If you are self employed, write off any income, and/or own any other real estate, add your 2 most rece...

Pole barn homes, container homes, geodesic domes, quonset hut homes, I've had calls about all kinds of odd building types. Unfortunately you can't use the FHA/VA Construction to Perm loan for any of these. The program exists to help build homes that are mainstream, not unique or special. Sorry, n...

As work is completed on your new home inspections will be done by the lender. These inspections are normally performed by the appraiser and are done to confirm that work was completed so funds can be disbursed to the builder (aka "draw").   Several times during the building process your home will...

With the Great Depression not far behind us, I'm taking calls from a number of people that have experienced a bankruptcy. These potential borrowers are going to have to wait 2 years from the date of their discharge to qualify for a FHA or VA loan, 4 years for a conventional. So the first thing yo...

There use to be a time, many years ago, that if you wanted to borrow money to build a home you had to get a construction only loan. Once the home was completed you had to refinance that construction loan into your end or permanent financing. You paid 2 sets of fees, fill out 2 applications, quali...