New Home Construction Mortgage Programs
Upgrade to a better home with Integrity First Lending
Your new home construction project is within sight. You’ve chosen a plot of land, settled on a builder, and have decided your new home’s design. But you don’t know how to pay for it — and you can’t take out a traditional mortgage since there’s no collateral to secure a home loan yet.
Integrity First Lending can help. Our new construction loans in Utah cover the cost of building a new home, including land, labor and materials, plans and permits, closing costs, contingency reserves, interest reserves, and more.
They’re different from conventional mortgage programs because we pay off the loan to the contractor, instead of the borrower, as the project achieves building milestones.
Qualifying for a New Construction Loan
Building a home is a long process, which involves a lot of moving parts. Know the process of your new home loan before you get started. After all, construction loans only cover the cost of building your new home. Once your home is built, transfer your amount over into a secured FHA loan with lower interest rates so you don’t have to carry private mortgage insurance.
Moreover, construction loans are a rotating loan that you can draw from as you build your new home. Following a construction plan, your contractor can draw from these funds for each stage of the process.
Our professional mortgage lenders keep the process running smoothly by managing you and your builder’s expectations. We value transparency and provide a top-notch customer experience, every step of the way.
We help you qualify for a new construction loan in Utah by reviewing the following:
- Credit score – A credit score of 680 or higher boosts your chances of qualifying for our loans
- Down payment – Often, new construction loans require a minimum down payment of 20%
- Debt-to-income ratio – Lower debt means a greater chance of qualifying for our loans. For good measure, your debt should not exceed 45% of your income
- Repayment plan – For construction-only loans, lenders may want to find out if you’ll pay your balance in cash or refinance once construction is complete.
We Facilitate Your Home Upgrade in Utah
Build your own home with a construction loan that works for you.
A new home upgrade means you have already owned your first home and now want something better. You are planning on moving to a desirable neighborhood, buying a larger home, or buying a home with nicer and better features. It could also mean you are going to build a new home. Integrity First Lending finds the best loans at the best rates for all of these scenarios.
Construction loans are a whole new ball game. If you are determined to build your own home plan on a game of numbers. Building your own home comes at a higher risk to the lender, so you will need to understand that a construction loan is short term, has a creative down payment, and more stringent credit scores to qualify. Being the first family to live in your new home may be worth it.
We offer two types of construction loans in Utah. These include:
- Construction-to-permanent loans – Under this loan, the money you borrow covers the construction costs of building your home. After the house is complete and you move in, we convert the loan balance into a permanent mortgage. This format is a two-in-one loan.
- Stand-alone construction – This approach involves taking out two separate loans: one pays for construction, while the other is a separate mortgage that pays off your construction debt. By choosing this option, you’ll end up with two separate loans.
Upgrade to a better home with Integrity First Lending. Whether you already own the land, or you need to include this in the price of your mortgage, we can help you get started and by making sure you qualify. Once your home is built, we will set up your new mortgage.
Contact one of our specialists in new home loans to find out the best course of action for you.
Pre-Qualify for Your Perfect Loan
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