FINANCING OPTIONS (FOR HOMEBUYERS)

Homebuyer figures out their budget by obtaining a Pre-Approval from their bank or mortgage company.

Buyers typically needs a One-Time Construction Loan (FHA, VA, USDA, or Conventional) 

Homebuyer is prepared for the following (3) THREE FACTORS for total estimated project cost. 

1) Land Amount

2) Site Improvement Costs

3) House w/ Delivery Price

In Colorado, if the homebuyer is purchasing land with their construction loan, the homebuyer needs to typically ask for a minimum of 60 days to close on the land for due diligence to be completed prior to closing due to risks of overruns. 

After the Homebuyer obtains a contract on the land they want to purchase, they need to have a General Contractor provide a contract for all of the required Site Improvements on the land for a new house.  

Ex. Permits, Excavation, Foundation,  Water/Well, Sewer/Septic, etc....

Just like a regular mortgage an appraisal is required to be completed prior to closing on this type of mortgage. These are the following (3) three items required to be ordered for the appraisal. 

1. House Contract w/ Plans

2. Site Improvement Contract

3. Purchase Agreement on Land

At the time of closing, the title insurance company will pay the Land Seller in full. 

The lender will also pay the required deposit to Trailhead Homes to order the house, while at the same time also release an initial draw to the General Contractor to begin the Site Improvements.