What are my financing options?
In today’s housing market it is a great time to consider buying or building a new home. While we have seen rates increase slightly in the past year, rates are still at historic lows which makes building or buying a new home more affordable.
Traditionally, building a home would mean 2 separate loans for the consumer; one loan for the construction phase of a homebuilding project and another loan for when the project is finished,
or what we call “permanent financing”.
Today we are seeing growing popularity with construction loans called “construction-to-permanent financing,” also known as the “all-in-one” or “one-time-close” loans. These types of loans have become popular due to the convenience for the consumer having only one application, one set of closing costs, and a single closing. A huge factor when considering construction-to-permanent financing is that it can protect you from rising interest rates.
The construction phase often takes 6 months or longer to complete. Without construction-to-permanent financing, this is a period of time when the consumer is at risk for interest rate fluctuation. Luana Savings Bank helps customers lock in a great long term interest rate right up front during the construction phase. We work with our customers to estimate the time period for construction and when it is completed monthly payments will start. This allows consumers to eliminate the risk of rising interest rates during the construction phase. Not all lenders offer these types of construction loans. However, Luana Savings Bank specializes in this type of lending as we see the great benefit for our customers.
Luana Savings Bank also specializes in home mortgages for those who are in the market to buy a home, rather than building which can be overwhelming. Our “No Cost Mortgage Special” has become a very popular loan product that Luana Savings Bank offers for both purchases and refinances. Again, not all lenders are able to offer this type of lending. This special product is a limited time offer that allows our customers to lock a competitive rate at no cost. Eliminating closing cost fees protects the consumer from being overcharged.
Luana Savings Bank also stresses the importance of quick loan approval and local loan decisions. We are unique because we approve and service loans locally. We strive to build close relationships with our customers beyond numbers which leads to a much more fulfilling experience for the customer as we work to meet their needs.
We welcome you to stop and talk to our real estate experts at Luana Savings Bank with any questions and see if our Construction-to-Permanent Financing or No Cost Mortgage Special products fit your needs.
Luana Savings Bank