Owner builder construction financing is a very common type of construction mortgage that we provide to our customers.

In most cases, the customer already has the property secured as it can be difficult to try and arrange both property acquisition and construction financing into one financing facility due to the amount of time it takes to get everything completed.

That being said, bank or institutional construction loans for owner builders typically require the property to be free and clear of encumbrances so that a first mortgage position can be secured against the real estate, so a single mortgage to acquire the property and then construction the new building is not going to likely work anyway if you are considering working with a bank or institutional lender.

The real key to owner builder construction financing is making sure that you are focusing in on the lender source so that the needs of your project can be properly met.

In many cases, owner builder loans are provided by private mortgage lenders even though the cost of financing is going to be higher than a bank.

This is primarily due to the speed in getting a construction loan in place through a private lender and the predictability of the draw advance schedule which is going to be critical to making your cash flow work through out the project.

Yes, private money will cost more, but this is also a short term cost that will only last during the time of construction and typically will not have a material impact on your overall budget.

Lower cost owner builder construction mortgages will take longer to get into place, and you’re well advised to access to a cash or credit reserve if the draw advances are delayed or reduced for any reason during construction.

There can certainly be cost advantages to bank or institutional loans for owner build or self build construction, provided that you approach this type of financing in the proper manner and clearly understand how to manage it for best results during the entire time the funding is required.

The best way to determine which type and specific source of owner builder construction financing is best for the project you’re planning, or perhaps one that you are in the middle of, is to work directly with an experienced construction mortgage broker who not only has broad access to different types of construction financing sources, but also has the track record of placing and administering construction loans and mortgages for other owner builders.

Click Here To Speak Directly To Construction Mortgage Broker Joe Walsh For A Free Assessment Of Your Owner Builder Construction Financing Options

The post Owner Builder Construction Financing first appeared on Ontario Construction Loans And Mortgage Financing.

A first time home builder loan is both an exciting and potentially frightening undertaking, especially if its the individuals first home overall and first experience with mortgage financing.

Even for someone who has done through the process years earlier, its going to be hard to retain the information learned and used only once in the past.

And not only is the property owner going to require a home builder loan, but they are also going to need to arrange a take out mortgage as well.

Even though both a construction loan and a long term take out mortgage can be arranged through the same lender, its not always the best option to do so for a number of different reasons which can vary from situation to situation.

This is why its a good idea to hook up with an experienced construction mortgage broker who can perform an initial assessment of your situation and your project’s objectives and then discuss different financing options and approaches that are going to best serve your needs.

One of the key benefits of working with a construction mortgage broker to secure a first time home builder loan is that he or she is going to be with you all the way through the loan procurement process, the draw administration and draw advance process, and the construction refinancing into a long term permanent loan.

If and when any issues come up along the way which is not uncommon for construction related financing, you have experience readily available to you to help get issues resolved quickly and keep the project back on track.

And if for whatever reason the project goes over budget, an up to date construction mortgage broker will be in a better position to either get your construction financing increased or arrange for a bridge loan than if you had to try and figure that out in the middle of your project.

First time home builder loans can be secured through banks, other institutional lenders, and private mortgage lenders as well. Each program and lender type have their benefits which should be properly considered before making any type of financing decision.

If you are looking for a first time home builder loan, I suggest that you give me a call so I can quickly assess your situation and provide home builder loan financing options that meet your requirements.

Click Here To Speak With Construction Mortgage Broker Joe Walsh For A Free Assessment Of Your First Time Home Builder Loan Options

The post First Time Home Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

If you’re looking to secure construction financing for a self build construction project for a new single family residence you plan on occupying post construction, then its important to be taking a more holistic view of the construction financing process.

Depending on your individual situation, there can be two or three different construction related loans that may need to be arranged to complete the project.

In some cases, a loan is required to acquire the land and perhaps fund some site development costs. Then the actual building construction loan is used to complete the primary construction. And when the project is complete, a take out or long term mortgage is required to retire the previously registered mortgages on the property.

If the land is already owned outright, then a construction mortgage and a long term take out mortgage will still likely be required.

Thinking with the end in mind entails calculating out the effective rate of financing in the short term and the longer term for the entire project.

The combination of construction related loans that yields the lowest cost of financing is likely going to be your best option, all other things being considered.

For instance, a construction loan through a bank or institutional lender may yield the lowest potential construction mortgage available to you, but typically an institutional lender will automatically require you to secure a long term take out mortgage with them as well.

The combination of the two mortgages may or may not yield the lowest overall cost of funding over time as you are limited to the selection in long term mortgage rates and terms being offered by the lender and you will have virtually no bargaining power to negotiate down the rate based on competitive offers.

An alternative approach would be to select a private mortgage construction loan that does not require that you have a take out mortgage in place prior to the commencement of construction.

This will provide you with more time to shop the market for the best long term financing deal and typically once a construction project is nearer to completion, the offers can become more competitive.

Of course there is no guarantee that the combination of a construction loan from a private lender and a take out mortgage from an institutional lender will be cheaper, but it can be.

This is why its worth going through the exercise of comparing your options from the outset, including both the near term and long term financing in the process.

The best way to determine which way to go is to work with a construction mortgage broker who is well versed in both approaches to construction financing and can help you work through the different scenarios that are going to be directly applicable to your particular situation and requirements.

Click Here To Speak Directly To Construction Mortgage Broker Joe Walsh

The post Self Build Construction Financing first appeared on Ontario Construction Loans And Mortgage Financing.

“Markham Builder Loan Financing For Commercial And Residential Construction”

Markham builder loan financing can be provided to both professional builders that are building out inventory or pre sold homes or buildings for resale, or property owners that are looking to either self occupy or resell then property upon completion of the work.

For professional builder loans, there may be additional financing requirements such as home warranty insurance that may have to be in place in order to secure financing. As a self build applicant, there are few restrictions for construction financing due to at least the initial perception that you are not in the business of building for the purpose of resale.

Builder loans for either professional builders or self build scenarios can both be acquired through bank or private lending sources. Bank construction financing programs do require a fair amount of qualifying information and can take a considerable amount of time to get into place. Because banks in general are only focused on “A” credit business, the requirements need validate that the application is indeed low risk in nature and deserving of the lower level interest rates.

Self build loans will typically require the property owner to also qualify for the long term take out mortgage at the same time as the builder loan. Most banks are not interested in any type of residential or commercial self build financing unless they can also secure the more lucrative and lower risk long term take out mortgage as well.

Because of their speed in making financing decisions and the lower levels of administration associated with securing and managing the loan during construction, private mortgages are the first choice for builder loans for many individuals. While the rates and fees are going to be higher with private financing, the benefit is speed and administrative simplicity that many builders are prepared to pay for in order to more effectively manage their projects.

All construction projects will have an optimum borrower/lender fit depending on the nature of the project, the requirements of the borrower, and the timelines you have to work with. In order to better determine how to locate and select the most appropriate source of Markham builder loans, builders would be well advised to work directly with an experienced construction mortgage broker who has access to both bank and private lending sources.

If you’re planning a project or are in the middle of one and require a Markham builder loan, I suggest that you give me a call so I can quickly assess your situation and provide relevant construction financing options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Markham Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Find Out About Your Richmond Hill Home Builder Loan Options”

Richmond Hill home builder loans for self build construction projects or single family home construction performed by a builder or developer can be acquired from a number of different sources depending on what your borrowing criteria area and your credit profile.

For self build home construction loans, most banks and institutional lenders have programs designed specifically for this purpose, but also have very specific qualifications and requirements to follow. This can be both a good and bad thing. Good thing in that its clear what the programs entail, what you need to qualify, and how the administration is structured. Bad thing in that complying with all the requirements can be difficult at times before, during, and after the initial application period and approval process is over.

Banks and institutional lenders will also provide home builder loans for professional builders, contractors, and developers who will be the actual borrower until the home is sold. Depending on the program, financing can be secured for a pre-sold single family home or a home that the builder will put into inventory for resale. Each situation will have different requirements from the lenders point of view.

The biggest difference between bank and institutional home builder loans in Richmond Hill and in other areas is that the self build version requires the owner to also qualify for the long term take out mortgage at the same time they apply for the construction financing. This assures that the mortgage lender will be able to secure the long term mortgage into their portfolio for many years to come versus making a smaller amount of money on a construction loan that lasts a few months. With a builder loan, there typically will not be the requirement for the take out mortgage as the builder or developer is the actual borrower and will not be holding the take out mortgage at the end of construction.

The most popular form of construction financing is private mortgage construction financing for both self build scenarios and professional builder loans. Private mortgages cost more, but also less administratively intensive to deal with an easier to get draws funded for the most part.

The key to figuring out which Richmond Hill home builder loan option is best for you is to work with an experienced construction mortgage broker that has a successful track record placing these types of mortgages.

If you need a Richmond Hill home builder loan either for a self build scenario or professional builder situation, I suggest that you give me a call so I can quickly assess your options and provide home builder loan options to consider.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Richmond Hill Home Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Toronto Building Mortgages For Home and Commercial Projects”

A building mortgage in Toronto can be arranged for anything from a single family dwelling construction project to a commercial or industrial facility build. Construction financing is provided through our institutional and private mortgage lending sources that service the Toronto and surrounding area.

For residential building mortgage financing, the bank related options are lower cost, but also require a pre approved take out mortgage to be in place with the same lender prior to construction as this is the only way a bank or institutional lender will provide a builder loan for a single family unit. This is one of the reasons private mortgage construction loans are more common even if they are priced at a higher cost of borrowing. Private lenders are only interested in the building mortgage or construction loan and most of the time they will not even require that the long term take out mortgage be in place prior to the commencement of construction.

Toronto building mortgages for resale unit building will be dependent to a large extent on the pre sold units for the project. The higher the number of pre sales in place with solid contracts signed and deposits in hand, the stronger the construction financing deal the builder, developer, or property owner will be able to arrange. Certain private lenders will focus on these types of projects due to their knowledge of the market and their ability to step in and take over the project if it stalls or falls apart before completion, reducing their potential risk of loss in the process.

For commercial building mortgages, the dollar amounts are typically larger than the average residential home, so there will be a greater emphasis on the construction planning and budgeting process by the mortgage lender. Larger projects will likely have more draws and more draw administration to deal with as well. In general terms, draw management is much more cumbersome with an institutional lender than with a private lender as well.

Most building mortgages are in first or second position on the property where the building is taking place. Loan to value ratios can range from 60% to 80% on the high side depending on the strength of the individual project.

If you need a Toronto building mortgage, I recommend that you give me a call so I can assess your project needs and provide relevant construction financing options for your consideration.

Click Here To Speak With Toronto Construction Mortgage Broker Joe Walsh

The post Building Mortgage Toronto first appeared on Ontario Construction Loans And Mortgage Financing.

“Mississauga Builder Loan Financing For Builders, Developers, and Property Owners”

A Mississauga builder loan can be defined in a number of different ways, depending on who the builder is. For self build situations, the most common forms of builder loan is either through a bank or institutional lender where the building or construction loan and the long term mortgage that pays out the construction loan are both approved prior to construction, or a private mortgage construction loan.

Of the two, the private mortgage builder loan option is most popular on single family construction projects, regardless of the builder due to the greater flexibility provided with a private mortgage including the ability to secure the long term take out mortgage after the construction project has gotten underway.

For builders and developers, a builder loan is based on a combination of the fair value of the real estate before and after the completion of work that would increase the value of the property, and the presence of presales for units that will be sold off to third party buyers. The pre-sold inventory provides greater lending value when there are substantial deposits paid into trust and binding purchase agreements signed by all parties. In the absence of unit sales or pre-sales, the loan to value amount will decrease from as high as 85% down to 50% of the fair value of the property.

The other main challenge with builder loans is getting funds advanced against the costs incurred in your project. Draw administration tends to be more complex with institutional lenders and can result in draw reductions and significant delays. Problems related to draw administration are hardly unique to bank or institutional lenders, but they tend to occur less often with private lenders and when issues do occur, are more often resolved than not.

The key to being able to get a Mississauga builder loan for a specific project is to work with a construction mortgage broker that has both the experience and lending sources to provide the funding you need. A well seasoned construction broker will not only help with locating funding and getting it approved, but they can be be invaluable in assisting with the draw process, especially when problems arise.

If you require a Mississauga builder loan, please give me a call so I can review your requirements with you and provide builder loan options for your consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Mississauga Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Toronto Builder Mortgage Financing To Local Area Builders”

A Toronto builder mortgage can be arranged from both private mortgage and institutional lending sources depending on the specific construction project, the financial profile of the borrower, and the borrower’s financing requirements.

Builder mortgages for construction projections are very dependent on the exit strategy for the property or units to be sold upon completion of the work. The best exit strategy is to have pre sales in hand that are executed under solid agreements and have paid deposits paid into trust to support the commitment of the buyer.

Construction projects built on speculation of resale can also be funded, but there may be more financial backing required from the borrower to secure the desired funds.

A Toronto builder mortgage from a private lending source is going to be priced higher than an institutional lender, but will also get approved in a shorter period of time with a lot less application support documentation. To secure an institutional builder loan, the applicant is going to have to either have the time to go through the application process from scratch, or have a pre standing relationship with an institutional lender or bank where performance has been shown on past projects.

With construction financing from bank or private mortgage sources on projects with multiple resale units being created, there will be a pre defined builder loan pay down schedule on the sale of each unit in order for the lender to be comfortable providing the necessary security discharge that that buyer will require in order to acquire a clear title.

The amount of funds required to pay down the mortgage for each sale will vary from lender to lender and project to project to some degree, but for the most part, institutional lenders will require higher pay downs for security discharge than private mortgage lenders.

One of the ways to get the best builder mortgage deal is to work with a construction mortgage broker who has access to both institutional and private mortgage construction funds.

If you’re a builder or developer working in the Greater Toronto Area and require a Toronto builder mortgage, I suggest that you give me a call so we can go over your requirements together and then review different builder mortgage options that are available to you in the market place.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Toronto Builder Mortgage first appeared on Ontario Construction Loans And Mortgage Financing.

“Here’s Your Source For Waterloo Builder Loans and Construction Mortgage Financing”

Waterloo builder loans for professional builders or individuals doing self build projects are available through our bank and private mortgage construction financing sources.

For residential self build projects, we can arrange bank construction financing or private mortgage construction loans. Bank construction loans provide the best rates for residential construction projects, but they are also more difficult to qualify for and have a more extensive administration process to follow. Many builders will weigh the trade offs between cost and ease of use and opt for privately funded construction financing loans.

That being said, if you qualify for an institutional construction financing program, we are more than happy to help you through the twists and turns of bank construction loans. Here are just a few things to keep in mind. First, because of the equity requirements of a bank, its almost impossible to get a construction loan in place if there is any type of existing first mortgage against the property even if the amount is small. Second, you have to qualify for both the construction loan and the take out mortgage in self build situations before construction begins. If you can’t qualify for both, then the bank will not provide a Waterloo builder loan as their only reason for providing construction mortgages is to be able to secure the long term take out mortgage. Third, the bank or institutional draw process can be hard to manage at times with a certain level of unpredictability inherent in the process with respect to the timing and amount of draw advances. If you plan to go with institutional construction financing, make sure you have ready access to some contingency funds if draws are delayed or cut back.

That’s one of the benefits of working with our team is that we have a lot of experience in getting our clients through construction loans through our hands on approach to helping solve problems in the loan administration process if and when then arise.

If you’re in need of a Waterloo builder loan for a project you’re planning or one that you’re in the middle of, I recommend that you give me a call so I can assess your requirements and then discuss relevant builder loan options with you.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Waterloo Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Toronto Building Loans Available For A Wide Variety of Residential and Commercial Construction Projects”

A Toronto Building loan is almost always provided in the form of a real estate property mortgage registered against the property where the construction is taking place.

Building loans are provided by both bank or institutional lenders, and private mortgage lenders. In fact, the majority of building loans are from private mortgage lenders due to the speed in which they can be put into place and the more straight forward construction mortgage administration process they provide.

That being said, a Toronto building loan from a bank or institutional lender will always be the lowest cost of construction financing available. So if you have a strong enough financing profile to qualify for bank building loans and have the time to go through their administration process, this is an excellent source of low cost construction mortgages to access.

For single family residential building loans where the intent of the borrower is to occupy the property after construction is complete, banks will require that you qualify for the building loan and the take out mortgage at the outset of the construction. The key reason why is that banks and other institutional lenders will not otherwise finance building loans for this purpose unless they can secure the long term residential mortgage in the process.

Commercial building loans are a different story as conventional lenders will look at financing larger one off commercial projects where there is no back end mortgage financing opportunity due to size of the mortgage funds required.

When you’re in the market for a Toronto building loan, its important to know what you can qualify for and what type of construction loan program and lender is going to be the best fit for you. Focusing on the wrong sources can be a big waste of time and can also end up with you working with a building loan provider that is a very poor match for your project which will likely lead to problems before construction is complete.

If you’re a builder, developer, or property owner seeking a Toronto building loan, I suggest that you give me a call so I can quickly assess your requirements and construction project and then provide relevant building loan options for your consideration.

Click Here To Speak With Toronto Construction Mortgage Broker Joe Walsh

The post Toronto Building Loan first appeared on Ontario Construction Loans And Mortgage Financing.