Googled around a bit but I must be asking Google the wrong questions. It seems like this Jefferson Financial credit union my wife has an account with has far better home loan rates than the bank we've been talking with. However it doesn't seem like they do construction loans from the website.

Do people most often have the construction loan with one institution and get the permanent financing with another? We'd been talking with American Gateway bank concerning their construction loan product but it seems like their permanent product is quite a bit higher than this credit unions?

What's the best way to go about this? Between lot equity and cash on hand we have better than 20% of money need to get the house built.

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Posted by rmc

Truth or Consequences

Member since Sep 2004

26481 posts

Posted on 4/17/14 at 12:42 pm to BeerMoney

What I see a good bit of is local banks getting the construction loans and then the permanent loans being one of the bigger lenders. Usually the local banks originate those perm loans also. Some local banks will do the perms, but the majority will not. If they do, its likely in the form of a 5 year balloon type note.

With 20% and decent credit you ought to be able to go conventional and get a 30 year rate in the 4s.

If you need any referrals for loan originators for the construction or perm email me.

This post was edited on 4/18/14 at 9:28 am

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Posted by jeepfreak

Back in the BR

Member since Oct 2003

19433 posts

Posted on 4/17/14 at 3:23 pm to BeerMoney

Our banking division does Construction to Perm loans. Shoot me an email and I'll put you in touch with our personal banker. She can walk you through the process and get you a quote to compare with the others you're looking at.

mtbjeepfreak@yahoo

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