TAPA Homes Financing Information
Construction lending is now available through WestStar Mortgage and their local lending partners. Rates are low and building with TAPA Homes will reduce construction loan costs. Our typical new home build time is 90 days and we rarely ever take the final draw before the permanent loan is closed.
WestStar Mortgage is a mortgage banker and works with TAPA Homes to help our customers find the perfect financing for their specific project.
- Construction-to permanent loan: Currently this is a two closing process with the first closing at the purchase of the lot or start of construction and the second closing when the construction loan is switched to the permanent loan. Presently there are no investor construction loans. Loans for primary residences or second homes.
- Requirements: Lenders want to see a minimum of 20% equity into the loan. That can be cash or property. If you have owned a lot for years and are now ready to tear down the old house or build for the first time on it, the lot could be your equity. If you found a lot in an area where you want to build then 20% of the lot and new house will be required as a down payment. The permanent loan can be a conventional loan, FHA, VA, or Rural Housing loan. Depending on what the buyer/borrower qualifies for.
- Underwriting: For any loan this is now a slower process with many more checks and balances in place. It will be important to have all the necessary documentation available as needed.
- Construction Loan: Even if you able to pay cash for the construction of your new home it might be wise to take out a construction loan. A construction loan can provide you with a level of security you may want.
- The lender will require certain items to be completed before they will release each draw. They will also require a notarized Release Of Liens affidavit from the builder stating that all subcontractors have been paid.
- The lender will also hold the final draw until you have the Certificate Of Occupancy.
- It is also a benefit to the builder because he is assured there is funds available to complete the home.
- The builder will not be able to allow the home owner to move into the new home until the Certificate Of Occupancy have been obtained.
- Energy Efficient Mortgage (EEM): FHA, Fannie Mae, and Freddie Mac all have Energy Efficient Mortgage programs. And because the NEB Home exceeds the minimum standards for Energy Star certification all NEB Homes qualify for an EEM program. NOT CURRENTLY AVAILABLE.
Contact Hayden Evans at,
, or call him at 302-725-0723 and he will be able to begin the loan process.