Let’s build your dream home together.


Have you ever wanted to search for your perfect dream home, but with no success? Have you ever wanted to live in a certain area and thought you could not afford it? Building your home with a licensed General Contractor and using a DRMC Construction loan program might just be your answer. You can choose your permanent loan program with a down payment option that fits your needs. You can choose your own licensed General Contractor, find your lot and save money building your own home.

Want to learn more? Let’s take a closer look.

Pre-qualify Contact a loan officer
Construction Loans

What are Construction loans?

A construction mortgage loan, also known as a construction loan, is a type of loan that is used to finance the construction of a new home or major home renovation project. Unlike a traditional mortgage, which provides the entire loan amount upfront, a construction loan is typically paid out in stages as the construction progresses.

  • Interest-only fixed-rate construction loans- 9 months
  • Fixed Rate Permanent Loan
  • Low Down Payment Option Programs
  • Construction loans for Modular homes-6 months
  • Changes can be made during construction
  • In-house fast and efficient draw system
  • Quick and Easy Builder Approval
  • Primary and Second Homes
  • Extended Long-Term Rate Lock-in available

 

Pre-qualify

Pros of a Construction Loan:

  1. Payment is based on construction stages:
    With a construction loan, you only pay interest on the amount of money you have drawn down to date, which can save you money in interest payments compared to a traditional mortgage.
     
  2. Customizable loan amount:
    You can often borrow more money with a construction loan than you could with a traditional mortgage, since the amount of the loan is based on the cost of construction.
     
  3. Interest-only payments:
    During the construction period, you may only have to make interest-only payments, which can be lower than the payments required on a traditional mortgage.

 

Cons of a Construction Loan:

  1. More paperwork and documentation:
    Applying for a construction loan can be more complex and require more documentation than applying for a traditional mortgage.
     
  2. Higher interest rates:
    Because construction loans are considered riskier for lenders than traditional mortgages, they often come with higher interest rates.
     
  3. Shorter repayment terms:
    Construction loans often have shorter repayment terms than traditional mortgages, meaning you will have to pay off the loan faster.

 

Good candidates for construction mortgage loans include:

  1. Individuals who want to build a new home or complete a major renovation project on an existing home.
     
  2. People with good credit scores and a low debt-to-income ratio.
     
  3. Those who have a stable income and can afford to make the monthly payments.
     
  4. Borrowers who have a reliable contractor in place, with a detailed construction plan and cost breakdown.

Contact one of our knowledgeable loan specialists who can help guide you through our extensive suite of loan products for a mortgage solution tailored to meet your specific needs.