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Financing

New Construction Lending

 

Yes, banks are still lending money for new construction. The interest rates are now at historic lows which makes building a new home even more affordable. We created this page to help answer some of our most frequent questions.

Does OWC have a preferred lender?

 

Yes and No. We will use any lender you choose however our clients have found that these banks are offering them the best rates and specialize in New Construction loans.

Terri Bordner
Sr. Mortgage Representative

 

NMLS # 639482
Dollar Bank
121 S. Cleveland Ave.
7th Floor
Canton, OH 44702

330.580.5790 Tel
330.265.6909 Cell
330.456.2468 Fax

tbordner116@dollarbank.com

James Nelson
Certified Mortgage Planner

 

NMLS # 440033
First Commonwealth Bank
Pointe View Professional Park
4831 Darrow Rd. Suite 106
Stow, OH 44224

330.734.6736 Tel
330.258.0825 Cell

jnelson@fcbanking.com

Scott R. Beck
Vice President, Mortgage Loan Officer

 

Premier Bank & Trust
6141 Whipple Ave. NW
North Canton, OH 44720

330.244.2993 Tel

scott.beck@mypbandtbank.com

FAQs


The downpayment size is going to depend on several factors including the location of the home, price of the home, your credit history, and appraisal. For a conventional 30 year loan up to $417,000 the downpayment can range from 5% to 20%. The majority of our clients put between 5% and 10%.We have also been accepted into the FHA program which can have downpayments as low as 3.5%. To get a better idea it is best to contact a loan officer and they should quickly be able to tell you what to expect.
A construction loan typically is an interest only loan during the construction period that will convert into a fixed mortgage at the completion of construction. The bank will disburse progress payments to the builder during construction and you will make interest only payments on the amount of money that is disbursed.
Yes. Your construction loan can fund the purchase of your lot and the construction of the home. This is generally less expensive than obtaining a lot loan and then a construction loan, because you will be paying closing costs twice.
Sometimes Yes. Generally you must own your lot for more than a year to use its equity as part of your downpayment.
Most banks resell your loan to a government entity such as Fannie Mae. The government has set guidelines for what standards a loan must meet in order for them to buy it and one of those standards is that the loan amount cannot exceed $417,000. You can get a loan for over $417,000 however it must be resold on the private market, therefore the interest rate and downpayment are going to be higher.
In order for the bank to fund your loan they will do an appraisal from the blueprints and specification sheets we provide them. The appraisers main consideration will be the location of where you are building and sales within the last 6 months in that area. The biggest key to consider is that you are building a home of less or equal value to the homes within a one mile radius.
I hope these answered some of your basic questions, but I’m sure you still have more. I would highly suggest taking a few minutes to contact one of our preferred lenders to give you a more complete picture on new construction lending.