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• About Us  • View Testimonials  • Construction Programs  • Construction rates  • Comparing Options  - Loan offers from different    banks  -Construction cost estimates  -Building new or remodeling    VS buying an existing home  -Being my own contractor   VS using a general contractor  - Get Answers  • Educational Resources  - ABC's of Construction    Financing  - Stick-Frame Home    Information  - Log/Timber-Frame Home    Information  - Modular Home    Information  - Lending Dictionary  - Construction Dictionary  • Bank  - Refer a customer for a    construction loan  - Learn more about    construction loans  - Receive consultation on setting    up our own construction    loan program(s)  - Get added to the Construction     Advisors network of lenders  - Get Answers  • Contact US   How Much Money Do I Have to Invest? The amount of money that a borrower must invest is completely situational. Every lender advertises loan rates and down-payment requirements and then you make contact and find out that you don't qualify, etc. You can expect that most lenders offer construction loans with at least 5-10% down-payment requirements. This down payments is typically based on the total cost of acquisition. The acquisition cost is comprised of your land costs plus construction costs. Here is an example: Land cost = $50,000 Construction cost = $175,000 Total cost (acquisition) = $225,000 Typical minimum Lender down-payment requirement of 5% = $11,250 Typical closing costs = $4,500 Total out of pocket costs = $15,750 The Construction Advisors way: Construction Advisors offers construction loans with no money down and actually makes the loans that way! Click here to qualify for your no money down loan today! Land cost = $50,000 Construction cost = $175,000 Total cost (acquisition) = $225,000 Construction Advisors down-payment requirement of 0% = $0 Typical closing costs = $4,500 Closing costs paid with loan proceeds = $4,500 Total out of pocket costs = $0 Does My Land Count as Down-Payment? Land that is owned by a borrower at the time of application can be used as down-payment toward the construction loan. There are a few things that have to be considered when figuring out how much credit will actually be given. Every lender is different but here is an example of the most common stance on down-payment by land equity. Land Owned Less than 12 Months, with an Outstanding Mortgage In this scenario let us say that land was purchased for $50,000 6 months ago and a mortgage of $40,000 exists after the necessary down-payment and is valued at $75,000 today. The lender would only give credit for $10,000 toward the construction loan because they don't consider it "seasoned." Construction Advisors would give you credit for $35,000 toward down-payment since we don't have "seasoning" requirements for most loans. Experience the Construction Advisors difference today —Contact Us to get started!

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