This client is applying for a new home construction loan and lives in Toledo Ohio. He appears to be well organized and has the experience necessary to allow him to manage the construction of his home himself. He plans to save a great deal of  money by managing the construction and also eliminating the profit that a builder would normally add in. Most people would have to hire a general manager at the minimum to manage all of the trades, secure permits and arrange inspections required by the city.

He has stated that all city permits are in place, that all plans are completed and he is ready to start construction. He only needs the new home construction loan financing to be in place to allow construction of his home to begin. New home construction loans come with a variety of features that are geared to consumers who are building their own homes. These features include one set of closing costs payable when construction is completed, interest only charges and payments while the home is being constructed and funds are withdrawn against the approved amount as the home is being constructed.  The amounts will be staged based on progress that is being made on the home.

The mortgage calculations at the bottom of this post show approximately $1000 difference between a mortgage based on 30 years vs. a 15 year term. At $2833 a month for a 15 year term, this client is approaching the limit of what might be approved based on his income level, including his wife’s income. On the other hand a 30 year mortgage is well within his limits to pay each month and would be a more reasonable amount to carry based on his current income.

It is likely that this client will be approved for this new home construction loan due to his excellent credit rating, his income level and his knowledge and experience building homes. Other potential clients without this experience may not receive approval for this type of loan.  Additionally the client should be aware that there are no provisions for over runs on his new home construction loan. Should he need additional funds to handle unforeseen construction costs, some other personal loan or provision will have to be discussed. We suggest that the client consider carefully whether he has built in sufficient funds to handle changes and additions to his cost estimate. They always occur and he should be prepared for them both from a time line perspective as well as from a cost perspective.

Home/Mortgage Loan Amount ::  Total of $400,000, with payments scheduled as home completes

Home Loan Application and Processing Speed (when do you need the funds):: Within the next 3 months

Do you currently have a mortgage? ::

Bank Name and Branch :: Fifth Third Bank, Monroe St

What City/Town, State and County do you live in? :: Toledo , Ohio

Zip :: 43615

What is your employment field? :: Construction

Employment Position :: Project Manager for large local Construction firm

When are you paid? (monthly/weekly/biweekly):: Biweekly

Your credit rating to be – excellent, fair, or bad? :: Excellent

How did you find us? :: Looking on the web for new construction loans

How are you paid? (direct deposit/paper check):: Direct deposit

Gross Amount Per Paycheck :: $80,000 plus my wife makes $50,000

Do you agree to have this information published online, without your PRIVATE information of course? :: I guess

Extra information here please (some detail):: We are about to start the construction of our new home and need a new home construction loan. We have purchased the lot, we have the plans approved by an architect and also the city. All of the agreements are in place and we have the permits from the city to begin construction.

We are now ready to start construction of the home and need approval for a new home construction loan to cover the cost of construction. We anticipate that the actual construction will take approximately six months to complete from the time the basement is started. We are really excited about our new home and are looking forward to getting started.

We understand that new home construction loans come with a number of features, such as one set of closing costs, draw downs on the mortgage as progress is made on the construction of the home  and interest only payments during the homes construction. Final closing should be when the home is completed and ready for occupancy.

Note to Lender ::  I am a construction manager and work in the home construction business so I am quite familiar with all of the permits and construction activities that are required for new home construction. We are planning to build our own home and act as the general construction foreman on this project to save a lot of money on the cost of the home. With my experience I will be able to handle this activity with out any issues.

My current company that I work with has allowed me to take time off as needed to supervise our homes construction. My wife will continue to work full time and I expect to be working half time, while spending the other half of my time managing the construction.  I also work in the same general area were this home will be built and easily make a trip over to the site if needed to solve some issue. All of the trades know me and will consult with me on any issue, as well as I will be available by phone 24 hours a day.

Category: Home Mortgage Loan	APR 3.884%	APR 4.356%	APR 4.662%
Loan Principal	$400,000	$400,000	$400,000
Payment Schedule	Monthly	Monthly	Monthly
Length of Term	15	20	30
Amount to be paid	$517,159.14	$574,956.71	$680,486.36
Total interest paid	$117,159.14	$174,956.71	$280,486.36
Paid per installment	$2,833.75	$2,362.84	$1,864.35

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2. Sweat Equity Home Construction Loan – in New Mexico This was submitted by a man who currently lives with his family in New Mexico and wants to get some more information on the sweat equity program, and wants to find the proper place to fill out an application and get on with the qualification...
3. USDA Sweat Equity Home Construction Loan So with the USDA (United States Department of Agriculture) home construction program, it’s been coined as the Self-Help Sweat Equity Program as well. A little bit confusing perhaps, but this is how it all works in brief. These USDA 502 sweat equity home loan borrowers....

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