Can I Afford to Build a Custom Home? Part Three: Financing

Are you considering building a custom home in Vancouver Washington and wondering if you can afford to have exactly what you want? Our custom home builder has the answers in this week’s three-part series.

Financing

Picking out a floor plan and faucets for the kitchen is a lot more fun than the steps to financing your new home, but it is a necessary evil.

Tuscany Homes Custom Built HomeFinancing a home build takes more than just a standard mortgage, so unless you can foot the cost of building your house, you will need to make out a construction loan. You’ll need to provide the bank with a building timeline, floorplans, and building materials. An experienced builder should be able to provide this information for you.

Be prepared to pay a sizable down payment for your construction loan. 25% is a typical down payment. Also, don’t be surprised if the construction loan has an interest rate higher than a a typical mortgage.

Once your home is finished, you can refinance your construction loan into your permanent mortgage, or you can get a new loan to pay off the construction loan.

For more information on the details of building a custom home in Vancouver Washington, contact Tuscany Home here. Building the home of your dreams is worth it!

More in the series: