Financing Your Panel Built Home

Posted by Andrew Barden on Mar 18, 2019 11:48:39 AM
Andrew Barden

 

We’ve worked with a great many customers to design and build their dream home -- one that meets all their needs.

But in our countless discussions with future homeowners, the most common question we get is: “This sounds great, but how do I pay for it all?” 

A natural question, indeed. Paying for your custom home is the other half of making it a reality.

The quick answer to that question: New home construction loans. 

Financing Your Panel Build Home: A 2 Part Process

New home construction loans are a great way to help finance your custom home.

Barden Building products has a great relationship with Rick Daniels of Prime Lending. This partnership helps us to reach our goal of being a dedicated, single point of contact for our customers during their building process.

The team at Prime Lending can help provide detailed information for your unique scenario.

In general, new construction home financing is done in 2 parts:

1. Construction Loan

A construction loan is a short term, higher interest loan given to pay for construction. Funds are released in chunks, called draws, upon completing construction milestones. There can be anywhere from 2 to 10 draws in a construction loan.

A loan structured with fewer draws may leave you responsible to pay contractors up front until the required milestone is met to release the next draw. Working with the right lender is key!

These loans are issued with a time limit, usually around 6 months, to complete the project. Just like selecting a lender, choosing an experienced builder or general contractor is necessary to make sure the project is completed on time.

Barden’s homes can be built very quickly compared to traditional construction. They usually take between 4 and 6 months to construct depending on things like weather conditions and contractor availability in your area. 

The speed in which we build your home can lead to less time accruing interest on the construction loan.

2. Traditional Mortgage

Upon completion of construction, the construction loan becomes a regular mortgage and you pay it just like normal. 

Where Can I get a construction loan?

Most major banks don’t like taking the risks associated with new construction lending.

Banks usually only include 2 - 4 draws into their packages, putting a financial strain on the customer. They also have that traditional, intimidating, and rigid prequalification process we all dread.

Prime Lending can help avoid this by providing a friendly team, easy prequalification, and a flexible draw schedule to help take some of the stress out of new home financing.

Creating a Home to Meet Your Budget

As a company with decades of experience in the home building business, we love helping future homeowners create their next home. 

There are a lot of variables that determine what the cost to build a custom home ends up as. Working with our team, you can be in the driver’s seat with many of the factors comprising the final price tag. 

Our team of in house designers and our Barden Independent Dealers are happy to work with you to come up with a home that meets your budgetary considerations. We’re even willing to look over plans created by someone else that are outside your budget and explore options to align it with what you’re willing to spend. 

Download the Financing Guide

We worked with Prime Lending to produce a helpful guide for anyone looking to finance a new panelized construction home.

The guide covers everything prospective new homeowners need to know, including:

  • How the new construction loan process works
  • How your home builder/Barden dealer gets paid
  • A construction timeline to walk you through the process
  • And more!

Financing Simplified: Consumer Guide to Construction Financing. Click to Download.

Topics: Panelized Construction, Budget, Technical Specs, Process, Price

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