Are you thinking of building a new home in Illinois? Searching for Illinois home construction loans? We have a variety of Illinois home construction loans available for most credit and income situations. Our goal is to make the new home construction and financing process simple and easy for you.
Two Options for Illinois Home Construction Loans
The first option for Illinois home construction loans is traditional home financing. A traditional real estate mortgage will work if your builder accepts the traditional lender’s requirements. This means the builder won’t receive payment until your home is completed. Traditional Illinois home construction loans and mortgages are available with larger builders who can build homes without receiving payments throughout the construction process.
Another option for Illinois home construction loans is true construction home loans. A home construction loan is often used with smaller home builders and custom home builders. If you build your own home as your own general contractor you will probably need a home construction loan. A home construction loan gives the builder payments as the construction is completed.
Qualifying for Illinois home construction loans may require some additional procedures compared to traditional home loans. Illinois home construction loans often require a larger down payment and good or excellent credit score. A lower credit score or other bad credit problems can be overcome with a larger down payment and/or very good income. Most if not all lenders will require you to have an experienced general contractor. Your general contractor will need insurance; otherwise you may be required to purchase insurance for the construction of your new home. Some lenders will require your general contractor to demonstrate strong financial stability.
There are additional complications involved when obtaining home construction loans and acting as your own general contractor. Lenders will often require additional inspections and information on all contractors being used for the entire construction process. A larger down payment may also be required when acting as your own general contractor in the construction of your new home. We have Illinois home construction loans available for your new home. If you are ready to apply please complete the pre-approval form below and our home loan officers will contact you directly.