Find the perfect home by building it! We have a construction loan program that will finance your home construction so that building your dream house does not have to be a dream.
You can trust the expertise of our experienced lenders and processors to make construction lending fast and easy for you in this very specialized business.
Since the U.S. economy has roared back since the dark days of the financial crisis, builders in the area of housing have taken advantage by increasing the volume of new home construction.
This situation has also increased the demand for financing house building via construction loans.
Simply put, a construction loan, also known as a “self-build construction loan” is a short-term loan where the proceeds are used to finance the construction of a home or another real estate project.
Its definition feature that is different from normal loan guidelines is that it requires special monitoring and guidelines to ensure that the construction project is completed so that the repayment of the loan can commence.
We offer a variety of home construction loan programs that can help you determine what is best to meet your home construction needs for your unique situation.
Building is your chance to have everything you want in your own home. We will make that possible!
Every home builder has unique needs. We have different types of construction loans that cater to the unique needs of a borrower.
If you need to borrow money to pay for the cost of building your home, we can give you financing for that and then convert it to a permanent mortgage once you move into your house when the construction is complete.
We offer this type of construction loan for borrowers who have a definite construction plan and timeline as we pay the builder while the work is being completed.
This loan will provide for steady payments because we lock the interest rates at closing when it is converted into a mortgage.
With a one-time closing, you don’t pay for duplicate fees since closing costs and overall fees are paid once.
You can then opt for a fixed-rate or adjustable-rate mortgage with payments that cover both interest and principal once the loan becomes a permanent mortgage.
We provide financing for completing a construction project with this type of loan. You will be responsible to pay the loan in full once the building is finished.
We disburse funds for this type of loan based upon the percentage of the project completed and you will be responsible to pay interest on the amount given per disbursement.
Since financing will only be for completion of the project, this type of construction loan tends to be costlier because you will need to apply for a permanent mortgage afterward with separate fees and complete requirements for a mortgage loan approval.
For home builders that do not want to hire a general contractor to build the house for them, we offer an attractive owner-builder construction loan for landowners who act as their own general contractor in building a house.
If you can offer a well-researched construction plan with convincing layouts of your home-building knowledge and abilities, you are qualified for this type of construction loan.
We are committed to making life easier for you during and after construction. We structured this loan to be owner-builder friendly the way you would want them to be so you can build your house your way.
There is no easier and more flexible construction loan available for a self-built home but this.
If you need financing for renovations or upgrades for your existing home, we can work with you to provide the loan size that you need.
This is generally a smaller and simpler loan that we offer which does not require a budget to be presented, nor schedules, plans, and project specifications.
Construction loans require a larger down payment compared to standard mortgages.
The standard amount down to qualify is 20 percent. For example, if you will be building a home with a market value of $800,000, you can get a $640,000 construction loan.
You can also use your land equity as a down payment on the loan.
We will verify your income before approving your construction loan application. You will need to supply us with the following information:
You should have a credit score of at least 680 or higher. The better your credit score is, the better rate and terms we will give.
Take steps to improve your score if you do not meet the minimum requirement like paying your bills on time and reducing your debt.
To qualify, you should not exceed a 45% debt-to-income ratio. This means that the percentage of your income that goes toward debt payment every month should not go beyond 45% of your total income.
If you have a hefty cash reserve like six months of principal, taxes, interest, and insurance payments in reserve funds, you will have a higher approval rate.
You will be asked to submit crucial information such as:
If you fall a little short in qualifying for a construction loan with the above-mentioned requirements, please do not hesitate to share with us all your details and our loan experts will see if there is anything we can do to make it easier for you to qualify.
Once we approve your construction loan, we pay it out in installments called “draws”.
As you complete the phases of the building process that you submitted in your plan, we will release funds in draws as payment to the builder for the costs needed to complete each phase.
You will then have enough cash to pay the costs upfront.
We have professionals who will do a thorough inspection to see how well the builder or contractor is completing the project as stated in their timeline and to verify the estimated cost of each current phase in the building process.
Since multiple parties are involved in closing a construction loan because the underwriting is subjectively based on future value, we have an outstanding team that will manage your and your builders’ expectations.
We can lead you through the process of your construction loan and through the seemingly complex transactions for you to get the best possible deal.
A construction loan from Sprint Funding is the best alternative that gives you more control at a lower cost in building your dream home.
You will get the best possible deal on loan rates, terms, and down payment requirements.
We can be flexible in our underwriting as long as we work to meet your needs for your home construction project.
Our experience in construction loans will provide you the best experience as you see your dream house unfold into reality.