Jerry Thomas's (constructionloan) Blog

I frequently have potential borrowers state that they want to participate in the construction of their new home to save money. Unfortunately this is another layer of risk for construction lenders in an already risky loan. No lender I know of will allow the borrower to do this on a low down paymen...

With the FHA Construction loan your contractor will only be paid as work is completed. This process is called is called a "draw".    It starts with your contractor contacting the lender to let them know that work has been completed. The lender will then send out an inspector to confirm that the ...

A wise person once told me "The most important thing in your life is your health, but your credit score isn't too far behind.". I wholeheartedly agree.  Your credit score doesn't just affect if you get a loan or not (and the rate you pay) it affects your insurance rates, and even job opportunitie...

A mortgage application, of any kind, is suppose to be a "snapshot" of the applicant's employment, income, debt, assets and credit worthiness. Don't move while the lender is trying to take this picture!   How do you "stand still" and not jeopardize your approval? Follow these rules; 1. Don't quit ...

 The less you put down the more important it is to build a home that is "common" for the area that you are building in. Why? Sooner or later an appraiser will have to set a value for your home. This value is NOT based on the dollars you have in your build but rather the sale price of similar home...

No one likes surprises. I'd like you to be fully informed about the application, closing and draw process before you begin. Here's a brief description of what you can expect as we move forward; Pre-Qualification- We start with a phone call. We will discuss your employment, income, cash on hand, c...

Yes, you can build a new home with FHA, VA and USDA loans. 3.5% down payment for FHA. 0% for VA and Rural Development. These are Single Close programs. One closing, one set of fees, no re-qualifying. Conventional loan programs require 10% to 20% down payment and minimum credit scores of 680 to 72...