FINANCING A CUSTOM BUILT HOME
CUSTOM HOME FINANCING
When you choose to work with Frank Good Builders you’ll have access to our preferred lender specializing in construction loans. At Bank of The James they understand the custom homebuilding process and help make building your dream home a smooth process from start to finish.
HOW ARE CONSTRUCTION LOANS DIFFERENT?
Construction loans are different than loans to buy existing homes. With construction loans, you only pay interest on the money that is dispersed during the construction of your home. The disbursement of funds is based on the draw schedule that is provided by the lenders. Lenders use the draw schedule as a timeline to pay the builder during the construction process. We generally request 5-7 draws during construction depending on the size of the home and stages of the process. Lenders will do their own inspections and require homeowners to sign off on draw requests. After your home is complete, the construction loan will be converted into a permanent mortgage.
