About The Construction Lending Process
We would like to take the time to educate our clients here about the lending process.
Before what many are calling the “greater recession” several local and national lenders were willing to lend construction loan money on the pre-construction appraised value. As an example; Mr. and Mrs. Jones find a parcel of land, pick out a True Built Home, get estimates for owner items and present everything to the lender. The lender, after receiving the builder packet, (that’s the contract, blueprints and description of materials from True Built Home) does a pre-construction appraisal to determine the home’s value. In the vast majority of cases, the home always appraised far above the actual cost. Many lenders would then give between 80% to 100% of the appraised value. In another words, if the projects projected cost was $180k, and the appraised value was $245k, they would give the percentage mentioned earlier based upon the appraised value. Often, if the client was credit worthy, they could take the cash out if they so desired. We know what that led to!
Page 1 of 3
What has changed? Many of the lenders listed above will do this scenario only if the client has owned or made payments (called “seasoned”) on the land for over a year. The banks can then use the equity in the property as a down payment on the construction loan. A few of the banks below require 5-20% of the estimated cost of construction still be put towards the purchase of the new home.
The catastrophe in the banking industry adversely affects pretty much every single type of loan. However, why are people still building homes from True Built?
• Building with True Built Home is still the best way to jump start equity in your home.
• With the quality of products and our “Different by Design” philosophy approach to building our homes, our clients will enjoy maintenance free living for years and will have a modern plan that will remain functional for your lifetime.
• You can enjoy the flexibility of your taste your way.
• With built-in equity, you’ll likely never be “upside down” like some of our friends, family, and neighbors.
• When you have an active part in your home you will not believe the excitement of seeing your home go up. It truly is an experience of a lifetime.
We hope here at True Built Home as a staff, sub-contractors and vendors that you will be added to a long list of success stories, proud owners and financially better off folks as a result of having discovered that owning new is simply a wiser choice to be had by the few.
List of True Built Lenders
Looking for the right lender for your situation can be a confusing and daunting process. At True Built Home, we want to make this process as convenient and effortless as we can. Please find a list of our preferred lenders below who can help you with the loan process.
Tacoma and Western Washington
Below are lenders available to help our clients on the west side of the mountains.
Terry S. Pemberton
Home Lending Officer NMLS ID 185396
Direct: 360-280-4208 / Fax: 888-977-9408
Terry can serve all of True Built Home’s locations and branches.
Why choose Umpqua Bank and Terry Pemberton?
Terry S. Pemberton has been doing these loans so long he can do them in his sleep. He can also do them state wide and via email. Umpqua Bank now has 2 Construction Loan Options:
- 10/1 Arm Construction Loan. Rate is fixed for 10 years.
(Can be refinanced after construction to a 30 fixed at Low or no cost to you)
- 10% minimum down payment with a 700 credit score. Lower score down to 680 ok with larger down payment. (If you already own the land you may not be required to make a cash down payment depending on your appraised value and equity.)
- 12 month construction time.
- Only Septic design approval required before closing.
- 30 Fixed Rate Construction Loan
- 10% minimum down payment with a 680 credit score assuming you do not already own the land. (If you already own the land you may not be required to make a cash down payment depending on your appraised value and equity.)
- Building Permit approval required before closing.
- 9 Month build time.
Knowing the Process: Here are the steps.
- Obtain credit approval. (Click HERE to get Approved) Once you complete the application it will upload to me and I can quickly pre-qualify you for free and update you on the result. Next I will send you a list of financial information needed for processing the file.
- Secure the land if not already owned.
- Sign the building contract with the builder and obtain all extra owner item cost quotes.
- The Bank then orders an appraisal and once it’s completed the loan is submitted for final approval to close.
- The interest rate depends on your credit score and loan to value ratio but generally the rate is about ½% above 30 year fixed rates.
- ONE TIME CLOSE: Our loans are both the construction and permanent loans all wrapped into one closing including the cost of the land, house, permits and all other construction related items.
- During the construction phase you will pay interest only on the funds drawn until the home is complete and you have an occupancy permit.
VP & Branch Manager
15610 Meridian Ave East
Puyallup, WA 98375
Office: 253-840-3493 / Email: firstname.lastname@example.org
Why choose WaFed? Washington Federal has been in business since 1917, has a strong community presence and also does loans across the state and many state boarders.
William (Bill) P. Andrews
Vice President, Branch Manager NMLS ID 539564
Office: 253-875-4250 / Toll Free: 1-800-562-8761
Fax: 253-875-8702 / Email: email@example.com
Bill and the owner of True Built Home go all the way back to the 1990’s. He’ll take great care of you.
Why choose Timberland? The All-in-One Construction Loan provides up to 12 months of interest only payments through the construction phase, then converts to permanent financing up to 80% loan-to-value. The permanent rate is locked before construction begins. In addition, the two-step construction loan provides financing for loans that exceed 80% loan-to-value. You pay interest only during the construction phase as funds are used. The construction term is 12 months. Your loan officer will assist you with converting to permanent financing.
Evergreen Home Loans:
310 29th Street NE Suite 201 Puyallup, WA 98372
tel (253) 222-5626 / fax (844) 513-0088 / direct (253) 268-4050
Home Lending Officer, Construction Specialist: NMLS #85255
307 29th Street NE, Suite 102 • Puyallup, WA 98372
tel (253) 904-1203 / cell (206) 550-7984 / fax (800) 313-7701
Email: firstname.lastname@example.org / Website: www.tgmorris.com
Vancouver – Salem, Oregon
Below are lenders available to help our clients south of Tacoma – Salem, Oregon.
2515 NE 134th Street, Ste 210
Vancouver, WA 98686
– and –
1208 Washington Way, Ste 150
Longview, WA 98632
Mobile : 360-957-7029
Tri-Cities, Spokane, and Eastern Washington
Bank of Eastern Oregon:
Jennifer G Cecil
Evergreen Home Loans:
Branch Manager & Senior Loan Officer
1030 North Center Pkwy., Suite 304
Kennewick, WA 99336
Phone: 509-579-3601 / Fax: (844) 417-4410
8656 W Gage Blvd, Suite 201
Kennewick, WA 99336
Office: 509-579-3600 / Cell: (509) 430-0926
Global Credit Union:
Inland Northwest Bank (INB):
Mountain West Bank:
12321 E. Mission
Spokane Valley, WA, 99216
Phone: 509-944-4025 / Mobile: 509-998-3636 / Fax: 509-944-4090
Numerica Credit Union:
8121 W Grandridge Blvd
Kennewick, WA 99336
We have offices all over Washington State to serve you and we can build in Washington, Northern Oregon and Western Idaho!
Tacoma / 253.272.5300 • Tri-Cities / 509.783.1411
Spokane / 509.255.3939 • Vancouver / 360.464.2884 • Salem / 971.599.2050