HOW DOES IT WORK?

• At the closing the Seller is paid in full at the same time we fund the Buyer’sentire construction upfront.

DOES THE BUYER SELECT BUILDER?

• Yes, the Homebuyer selects the Builder of their choice

WHAT ARE DOWN PAYMENT REQUIREMENTS? 

• 0%-USDA

• 3.5%-FHA

• 0%-VA

• 5%-Conventional

CAN YOU PROVIDE ME AN EXAMPLE?

• If the Vacant Land cost $50k, and the Construction is $150k that comes to a total of $200k. For an FHA loan the homebuyer would only be required to have $7,000 total vested into the transaction.

WHAT ITEMS WOULD BE CONSIDERED TOWARDS THEIR DOWN PAYMENT REQUIREMENT?

1. Earnest Money on Land 

2. Deposit Paid to Builder or General Contractor

3. Payment to Home Designer or Architect

4. Soils Report and Profile/Perc Test

CAN EQUITY OF THE LAND BE APPLIED TOWARDS THE DOWN PAYMENT REQUIREMENT?

• Yes, if you own the property prior to the closing current equity can be considered as down payment.

IS THE LOAN APPLICATION THE SAME AS APPLYING FOR A REGULAR MORTGAGE?

• Yes

WHAT ADDITIONAL ITEMS ARE NEEDED FOR THIS LAND & CONSTRUCTION LOAN?

– Signed Purchase Agreement with Seller (Landowner)
– Plans/Prints with Specs, Elevations, Floorplan, and Description of Materials
– Build Contract including all needed Site Improvements

SO THE BUYER CAN ROLL ALL THE SITE IMPROVEMENTS INTO THIS LOAN TOO?

• Yes, they can include Permits, Engineering, Taps, Utilities, Excavation, Foundation, Septic, Well, etc…

ARE THERE UPFRONT COSTS THE BUYER SHOULD BE PREPARED FOR?

• Yes, Two Possible.

• Soils Report -This can be required by the Builder prior to closing, and needed for foundation bid.

• Profile Test – aka “Perc” is required prior to closing only if a new Septic System is being installed.

TYPE OF HOUSE BUYER CAN BUILD? 

• Stick, Modular, Manufactured, Log, or Post & Beam

HOW DOES A HOMEBUYER APPLY? 

(844-307-1462) or https://goldencircleproperties.com/contact/