Foundation Homes of CNY Financing
1
Pre-Approval
Clients must provide a letter of pre-approval or pre-qualification for an amount at least 10% higher than the contract price from their chosen lender.
2
Initial Deposit
A 10% deposit of the total construction amount is required upon contract signing to initiate the project.
3
Final Mortgage Process
Approximately 60-90 days before construction completion, clients will be notified to begin securing their permanent mortgage.
4
Property Deed
The property will be deeded to Foundation Homes of CNY LLC. Once the project is completed, the client will purchase the house and land using a conventional long-term loan (commonly referred to as a mortgage). This streamlined process simplifies financing for buyers.
5
Financing Fee
At or before closing, the purchaser will provide the builder with a check covering expenses related to the financing provided by Foundation Homes of CNY LLC. This fee is separate from the contract price.
To simplify the home-building process for our clients, Foundation Homes of CNY LLC offers in-house short-term construction financing. We serve as an intermediary between you and your preferred permanent lender, providing a more straightforward and cost effective alternative to traditional construction loans.
Our Process
Foundation Homes of CNY Financing
Our Process
Simplified & Cost-Effective
Our Solution
To simplify the home-building process for our clients, Foundation Homes of CNY LLC offers in-house short-term construction financing. We serve as an intermediary between you and your preferred permanent lender, providing a more straightforward and cost effective alternative to traditional construction loans.
No closing costs
No interest payments during construction
Simple, distinct fee structure
Understanding How It Works
Traditional Construction Loans
A home construction loan is a short term, higher-interest loan designed to provide the necessary funds to build a residential property. Typically lasting up to one year, these loans must cover the complete construction process until a certificate of occupancy is issued. Local lenders commonly offer this type of financing.
1. Application Process
The borrower submits financial documents, project plans, and timelines to apply for a construction loan.
2. Funding Draws
Once approved, the borrower can draw funds in phases as the construction progresses, usually repaying only the interest during the building period.
3. Inspections
A bank inspector will assess the property throughout construction to authorize the release of additional funds.
