#home construction loans #

Now Offering Home Construction Loans in Michigan

If you are considering build a home in Michigan they you may need a construction loan. This type of mortgage will allow you to buy land and also finance the construction of your home.

Most construction loans are variable rates tied to the prime interest rate. This is typically not an issue as most building projects are complete within 3-6 months. You can then get and construction end loan that will allow you to refinance into a fixed rate mortgage with conventional financing.

Construction Loan uses include:

• Construction loans
• Buying Home Site Lots
• Building on Vacant land
• Loan for Building a Home
• Adding wells and septic tanks
• Pouring new foundations
• Carpentry
• Installing Electric
• HVAC and Insulation
• Landscaping
• Painting and Drywall

Starting the Home Construction Process

The first place to start when building a home in the construction process is to get preapproved by a mortgage company that specializes in this type of financing. Get a loan for building a home with this process.

As you may have found from your reasearch, many banks and mortgage companies do not offer construction financing. It is a riskier type of financing for banks and lenders therefore they choose not to participate in building programs. Riverbank Finance LLC is proud to offer home construction loans to their clients in Michigan!

Minimum Loan requirements for Construction Financing

As we mentioned earlier, the home building loan is a risky investment for lenders therefore they are much harder to qualify for. They also require lower Loan-to-Value ratios that traditional conventional financing. This means that you must have larger down payments and have sufficient assets to complete the process.

Minimum loan requirements:

700+ Credit Score

Strong Credit References

25% equity in the home site land

20% equity based on the final completion value.

6 months PITI (principal, interest, taxes and insurances) reserves

No bankruptcies or foreclosures in the past

No Judgment or significant Collections

No significant derogatory credit

Low DTI (debt-to-income) ratios

If you believe you may be eligible for a construction loan then call us today at or submit a request for information below.

Request More Information

Let us know how we can help you and we will get your mortgage program information within 24 hours!