Timber Frame Home Financing
Financing a timber frame home is unlike financing a "stick
built" home. Not all construction lenders are set up to
handle the different requirements involved in timber frame home financing. Most will
try to make your project "fit" their loan program, rather than fitting
the timber frame home financing program to the unique requirements of your project.
Timber frame home financing packages offer many advantages and payment options.
- Fixed or adjustable interest rates
- No typically higher rates for interim financing
- Eliminate a second set of closing costs with a single close
timber frame home financing loan
- Use the equity in your land as down payment
- Finance up to 95% of the value (includes your land and the value
of the home)
- Construction periods are available up to one year
- During construction, payments are interest only and only on the funds
disbursed
- Draw schedules are tailored to the unique needs of the timber frame home
builder. Your timber frame home dealer wants to be paid when the package is delivered. Our
lenders understand the process and will work with the dealer to ensure there
are no delays.
- Appraisal comps do not have to be timber frame construction if none are available
in your immediate area
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Several Timber Frame Home Financing options include:
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One Time Close Timber Frame Home Financing
Single Rate. "One Step" program which protects you
against increasing rates and extended lock fees. Interest only fixed rate
during construction and modifies into a permanent loan after construction.
Great flexibility and low rates on ARMs.
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One Time Close Timber Frame Home Financing Prime Rate
Based. "Two Step"
program allows
you to borrow up to 95% of your total cost for a Principal Residence and up
to 90% on a Vacation Home. Based on the Prime Rate during the
construction period with interest only collected on funds disbursed. Allows a 12 month construction phase.
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Lot Loans.
Designed for those who found the perfect lot but are not ready to build. Low
down payment loans are available.
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I have written a
newsletter
covering timber frame home financing construction/perm loans, and a
timber frame home financing construction FAQ
is available.
I have a list of timber
frame home financing documentation needed
to process your loan.
There is a new page detailing timber
frame home financing
loan fees.
I have detailed information on extended
interest rate locks with a float down option.
I have a page on calculating mortgage qualification ratios.
If you are not ready to build but have found the perfect lot.
The new Purchase Plus Lot
Loan can save you a great deal of money.
One of my favorite lenders has
finally reopened their construction department. They offer you the ability to
modify into the incredibly flexible Cash Flow Loan
when your construction is complete.
Read more about timber frame home
financing
Closing Costs One of the questions I frequently get from my clients
is about finding a qualified and reliable contractor. After a great deal of
research, I do recommend Reliable Remodeler. I have personally used their free
service and was very pleased with the outcome. Please complete their
contractor referral form for up to 4
local pre screened contractors. As a
Certified Mortgage Planning
Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
Prequalify for your
Timber
Frame Home Financing
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