Custom Home Builder: Construction Loans made easy

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new home loan

Building a new custom home on your lot or land can be more difficult because of the loan process. CMS Homes LLC offers the “Easy Build” program to help take the stress out of the process. First let’s bring you “up to speed” on loans required for your new custom home.

2 types of loans are required when building a new home. The first loan is called the “Construction Loan” and the second loan is called the “Permanent Loan”.

The Construction Loan
Construction loans are typically obtained through a conventional lender (A bank). Construction loans typically require between 20%-25% cash or equity from the borrower. The equity (Difference between the lot value and the lot loan.) in your lot is allowed to count toward the required equity. Construction loans are typically 1 year in length and typically cost 1%-3% more than the “Permanent Loan”. Borrowers typically pay interest only during the construction process. Construction Loan lenders usually require the borrower to have a written commitment from the Permanent Loan lender so that at completion they are assured you can get the funds to pay off the construction loan.

The Permanent Loan
This loan is the same type of loan that you would get on any home. These loans are typically 15-30 year loans amortized so that the loan is paid off at the end of the term. Down payment requirements vary from 100% USDA loan to 20% down conventional loan. In between there are products like the 3-5% down FHA loan and many other products.

So how does CMS Homes make this process easier for you?

We offer a 1 loan process to our custom home customers. If the customer and the property meet certain criteria we will obtain the construction loan for you so that you only have to go through one loan process and close that loan when you receive the keys to your new home. To participate in our “Easy Build” program requires the following:

  • 10% down or have 10% of the total purchase price in lot or land equity.
  • Deeding lot title to CMS Homes.
  • Satisfactory pre-construction appraisal of lot and house.
  • Satisfactory permanent financing loan commitment prior to start.

Of course if you don’t want the “Easy Build” program we will do a standard build where you obtain the construction loan.

For more information on the “Easy Build” program contact us

See all Custom Home Building 101 Articles

Easy build program is contingent upon builder’s obtaining approval from builder’s lender for construction loan and may have additional requirements based upon lender’s requirements.

Fair Housing Policy – “This company conducts business in accordance with all federal, state, and local fair housing laws. It is our policy to provide housing opportunities to all persons regardless of race, color, religion, sex, familial status, handicap, national origin or sexual orientation. The company’s fair housing procedures are not recommendations. They must be followed by everyone associated with the company.”
CMS Homes LLC is a new home builder specializing in New Homes for sale in Troy MO and New Homes for sale in Lincoln County MO. You are sure to find your special new home in on of our 8 new home subdivisions in Troy MO. and Lincoln County MO. We also can help you buy a new home with no money down or help you with a custom home built on your lot.
If you visit a display home many items displayed are optional upgrades. Please ask the salesperson what items are standard features and which items are optional upgrades which are an additional charge over and above the model base price.
*New home prices and interest rates are subject to change without notice. Advertised square footage may slightly vary as built. New homes pictured may not be available at the lowest advertised price. Advertised monthly payments are based on principal and interest assuming a fixed 30 year term with no money down. Other fees such as taxes, homeowner’s insurance and HOA fees are not included and will result in a greater actual monthly payment amount. 100% financing available through USDA, eligibility requirements do apply. 3D floor plans, interior rendering images and exterior rendering images are intended for illustration purpose only to give you a basic idea of the home layout. Many items shown are not expressed or implied to be included in the base price of any home. This includes but is not limited to cabinetry layout configuration, cabinet trim and accessories,counter tops, flooring, fixtures, equipment, appliances, lighting, colors, interior furnishings, exterior trees, shrubs, driveways, sidewalks, size of lawn and landscaping. Please contact CMS Homes for a specific list of items included and standard features.
Some grass pictured is digitally applied to photo and is not included with home as pictured.