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Financing your Custom Home Provided by Coastal States Mortgage The process of building a dream home is a very exciting time for homeowners, but it can also be a little daunting with all the choices and decisions that need to be made. One of the most important decisions in the process will be how to finance the construction. In residential financing there are two primary financing options: a standard construction loan, and one-time close, construction-topermanent loan. Standard construction loans are short term loans, normally 9 to 15 months in duration. These loans are a line of credit for the homeowner which is funded gradually as the property is being built. When the line is fully funded and the property is complete, the homeowner will need to pay off the
Brad Ellis
line, which could mean refinancing it into a longterm permanent mortgage or paying it off with other funds. The primary advantage with these loans is that the borrower is not committed to a long-term mortgage and has some flexibility when deciding how to finance the completed property. The second option is a one-time close, construction-to-permanent (C to P) loan. In this scenario the client still gets a credit line which is drawn to finance the construction, but the line will automatically convert to a permanent mortgage when the construction is complete. In this case the borrower will choose their
Kim Smith
Senior Vice President, Mortgage Loan Officer M / (843) 384-6339 E / bellis@coastalstatesbank.com NMLS# 780331
coastalstatesbank.com/brad-ellis
Mortgage Loan Officer M / (843) 422-4321 E / ksmith@coastalstatesbank.com NMLS# 780344 coastalstatesbank.com/kim-smith
Matt Minasi
Stephen Dick
Vice President, Mortgage Manager M / (843) 290-3245 E / mminasi@coastalstatesbank.com NMLS# 659245 coastalstatesbank.com/matt-minasi
Mortgage Loan Officer M / (970) 566-2121 E / sdick@coastalstatesbank.com NMLS# 1865927 coastalstatesbank.com/stephen-dick
Joan Sherwood
Paul Furr
Joey Ryan
Lisa Cornell Henry
Mortgage Loan Officer M / (843) 384-1385 E / jsherwood@coastalstatesbank.com NMLS# 659256 coastalstatesbank.com/joan-sherwood
Mortgage Loan Officer M / (843) 422-1111 E / jryan@coastalstatesbank.com NMLS# 2149572 coastalstatesbank.com/joey-ryan Coastal States Mortgage NMLS# 154698
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Mortgage Loan Officer M / (770) 500-6634 E / pfurr@coastalstatesbank.com NMLS# 1531314 coastalstatesbank.com/paul-furr
permanent financing loan upfront before the construction is started. The big advantage of C to P loans is that the client can lock in their final rate before construction begins and there may be fewer closing costs overall. One of the best decisions homeowners can make is to consult with a local construction lending specialist to discuss their options and really understand the construction financing process before they start.
LOCAL. AND PROUD OF IT.® For more information, visit our website coastalstatesbank.com
AVP, Construction Lending Specialist – Mortgage Loan Officer M / (843) 422-7105 E / lhenry@coastalstatesbank.com NMLS #918797 coastalstatesbank.com/lisa-henry
5/3/22 10:11 PM
