Construction loan

[epp838]

I'm in the process of trying to build a house. My current lender is dragging their feet and it's been over two months with no closing date in sight. They claim a few more weeks but I've heard 3 times already. They dropped the ball on ordering the appraisal a month ago. Originally when I started this process they told me 4-6 weeks.

Anyone recently got a new home construction loan? If so, who did you use and how long did it take to close? How much was required down? I'm in the DFW area.

[captainsling]

Welcome to the construction loan process. We dealt with a credit union which shall remain nameless. It was a nightmare dealing with them. Our builder was great. We were in 9 months from start of paperwork. It was so worth it in the end. Good luck.

We had to put 20% down. Negotiate your closing fees. They are negotiable. Some of them. You will have to close twice.

[Forester]

We are in the process of building now, using RBFCU to finance. The whole paperwork process took about 7 weeks. I have been satisfied with their service so far. They prefer 20% down but you don't have to put that much down. I'd definately recommend them.

[quarterback]

epp838 try Prosperity Bank. The one at Belt Line and Tripp Rd. I've talked to several people who ended up there and they seemed very satisfied with the whole process. I've banked there for years and it's a good little bank.

[LFD2037]

You will have to close twice.

Unless you get a '1 Time Close' loan!

Try Gateway Mortgage. 10% down.

[txreezen]

I wasn't required to put any money down on my construction loan and only had to provide a down payment when we closed on the finished home. We had two closings, too.

[FireNguns]

I used First United bank. We closed in 3 weeks and will convert to permanent once the house is almost done. Super easy to work with and they never sell your loan. The branch we used was in Denton but their main office is in Oklahoma with several locations throughout.
They only required 5% and will include land as equity.

[CWaller30]

We just had closing costs for our construction loan. Then each month we paid 4% interest on whatever we withdrew for construction. When complete there were no closing costs or downpayment.

[Tbar]

epp838 try Prosperity Bank. The one at Belt Line and Tripp Rd. I've talked to several people who ended up there and they seemed very satisfied with the whole process. I've banked there for years and it's a good little bank.

I just started using that little bank this year for some other things.

[LFD2037]

We just had closing costs for our construction loan. Then each month we paid 4% interest on whatever we withdrew for construction. When complete there were no closing costs or downpayment.

Interesting. Never heard of it done that way. Who did you use? Did you own the land?

I'm trying to buy a lot & build a home on it. Problem is is the lender wants too 10% down + closing. We only have 5% down & closing. I need to find a company that:
will do a 1 Time Close loan w/5% down & won't sell the loan in the future.

[CWaller30]

Our situation is a little different. We are redoing a home and adding onto it. The original land(288 acres) was purchased by my in laws about a year ago. We in turn bought a few acres surrounding the home from them. So ours isn't really a build from scratch but from what we have found so far it may as well have been.

[JayB]

Just a ?...what difference does it make if a lender sells the loan? The terms don't change. I understand you have to deal with a different loan servicing company....but besides that?

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[Drop Tine]

First United is a great bank to deal with. Also Texas Bank and Trust, but I'm not certain they service the D/FW area.

[LFD2037]

It's just a pain. I've had 1 mortgage sold 3 times in less than 3 years.

[captainsling]

Unless you get a '1 Time Close' loan!

Try Gateway Mortgage. 10% down.

So you don't have to close again on the construction loan to get your permanent financing? Never seen it done this way.