Construction Loans

We are offering some of the most competitive construction loans in the San Antonio market.

To be approved for a construction loan, not only will you have to go through the typical process of proving your creditworthiness and ability to repay the loan, you’ll also have to show the lender detailed plans for the project, including cost estimates. The lender may also need to approve of the company that’s building your home.

You won’t be approved for a construction loan until you have all these details sorted out. 

Once you’ve got your plan and your loan approval, and you’re preparing to break ground, your builder will receive the first disbursement of the funds.

With construction loans, the money isn’t given to you all at once. Instead, the builder receives a series of disbursements called “draws.” Whenever your builder requests a new draw for the next stage of work, an inspector will come to the site and check out the progress on behalf of the lender.

Before you break ground, be sure both you and your builder understand the lender’s draw schedule, including when and how disbursements are made

• Just as it says…you close one time. One set of closing costs and your rate is locked at the time of closing.
• Offers a modification option to qualified borrowers upon completion.
• Affords borrowers confidence in knowing that their permanent loan is secured.
• Loan payment is interest only based upon drawn funds during construction and then modifies to permanent and fully amortizing loan once home is complete.
• Recast options are available.

• Borrower gets a separate construction loan and then has to re-qualify for a separate permanent loan.
• Perfect for borrowers who want to use a specialty program for the permanent loan (such as VA or certain jumbo loans).
• Perfect for a borrower who has a home to sell, but doesn’t want to move twice. Can qualify with higher debt-to-income ratios.
• Subject to rates rising during construction period for a permanent loan. Rates could always decrease too!

*This is not an offer for extension of credit or commitment to lend.  All loans are subject to program guidelines and final underwriting approval.  Not all applicants qualify.  Information and pricing are subject to change at any time and without notice.  The content in this advertisement is for informational purposes only. Please contact Jennifer for additional guidelines.

 Two-Time Close Construction Loan for Veterans

With SALending’s headquarters in Military City, USA, we know the importance of being able to offer our services to our military community. We strive to provide products tailored toward our active and retired service men and women. We are pleased to announce that Guardian Mortgage and Sunflower Bank have rolled out a VA 2x Construction Loan. Product benefits include

Up to 95% Financing

• Low down payment options help keep cash in our military community’s pocket.
• Because equity in land can be used, some Veterans may not have a down payment!

No Max Build Price

• Jumbo are allowed!!
• Loans will be approved using VA guidelines. This means more Veterans will have access to building the homes of their dreams.
• We underwrite based on individual exemptions. This help ensures the borrowers get approved for the most amount of house possible.

Property Flexibility

• We are not limited by acreage* and can lend anywhere in Texas
• Metal Home Allowed **
• Up to 18 months of build time

 *land/home value limitations may apply**must have acceptable marketability and appraisalThis is not an offer for extension of credit or commitment to lend.  All loans are subject to program guidelines and final underwriting approval.  Not all applicants qualify.  Information and pricing are subject to change at any time and without notice.  The content in this advertisement is for informational purposes only. Please contact Jennifer for additional guidelines. 

• All banks/credit unions/Mortgage Companies are created equal.Absolutely not! We urge you to shop around. EXPERIENCE is also a key aspect.
• I don’t need insurance on the house when it is being built.Builders Risk Insurance is required (either paid by builder or borrower) and Liability Insurance is also highly recommended.
• Construction Loans and One-Time Close Construction Loans are so difficult to get, I might as well not even try.They really aren’t difficult if you are working with someone who is experienced in construction lending. They are just like any other loan, except there is just a little more paperwork involved. The process is exciting and much easier than you would think!

Anywhere between 1-3! Choice A: Buy lot, do Construction Loan, refinance with permanent loan = 3 closings. Choice B: Buy lot, do One-Time Close Loan = 2 closings. Choice C: Close on lot and One-Time Construction Loan at same time = 1 closing.

It’s kind of tricky, but it can be done! Easiest: Buy lot from the builder or developer that is building your home. Harder: Have your builder picked out ahead of time. Design your home and complete the plans, specs and most of the budget (except for the site costs). Seller of lot must agree to a slightly longer than normal closing time (45-60 days) so that you can get final bids for site costs finalized before everything goes to the lender. Hardest: Find seller of lot that is willing to have a very extended closing time-frame (up to 120 days) so that you have time to find builder, do home design, plans, specs etc. and for lender to go through their process. 

Typically, a 12 month construction period is allotted. You just have to let the lender know up-front what is expected. If you run into a snag, we will give you up to an additional 6 month increase in time.

Typically, a 12 month construction period is allotted. You just have to let the lender know up-front what is expected. If you run into a snag, we will give you up to an additional 6 month increase in time.

Yes. The payments are interest only based on what is drawn.