In today’s competitive real estate market, many prospective homeowners are finding it increasingly difficult to locate existing homes that meet their needs. With rising home prices and limited inventory, more and more borrowers are turning to construction loans as a viable alternative. Instead of settling for a property that doesn’t check all the boxes, they’re choosing to build their dream home from the ground up.
Ben Lucero and the team at Indigo Mortgage have been specializing in construction loans for over 20 years. With extensive experience in this sector, they understand the unique challenges and opportunities that come with building a new home. From first-time builders to seasoned homeowners, Ben Lucero and Indigo Mortgage provide comprehensive guidance and tailored loan products to ensure a smooth construction process.
The Rise in Construction Loans
Why are construction loans gaining popularity now? The answer lies in the current housing market dynamics. The lack of available homes that meet specific criteria, coupled with increasing property prices, has led many potential buyers to consider building instead of buying. By opting for a construction loan, borrowers can create a home that meets their exact specifications, ensuring that they get exactly what they want.
Additionally, construction loans provide flexibility. Whether the borrower wants a single-family home, a multifamily property, or a luxury residence, there are loan products available to accommodate various needs. Ben Lucero and Indigo Mortgage offer a wide range of construction loan options designed to meet diverse borrower profiles.
Construction Loan Options at Indigo Mortgage
Indigo Mortgage provides several construction loan programs that can be customized to fit the borrower’s specific needs. Ben Lucero and his team take the time to assess each borrower’s financial situation and recommend the best loan product for their project. Here are some of the primary construction loan options offered:
1. One-Time Close Loans
One-Time Close Loans are an ideal choice for borrowers who want to simplify the financing process. These loans combine both construction financing and the permanent mortgage into one single loan, eliminating the need for two separate closings.
Indigo Mortgage offers One-Time Close Loans for conventional, FHA, and VA loans. This option is particularly attractive to borrowers who want to lock in their interest rate early and avoid fluctuations during the construction phase. By securing the loan at the start of the project, borrowers can budget more effectively and avoid potential financial surprises down the line.
2. Owner-Builder Loans
For those who want to take a more hands-on approach to their construction project, Indigo Mortgage provides loans for owner-builders. This program is designed for borrowers who plan to oversee the construction process themselves.
While this option can potentially save money, it also requires more responsibility and management on the part of the borrower. Ben Lucero and the team at Indigo Mortgage work closely with owner-builders to ensure they understand the intricacies of managing a construction project, from securing permits to scheduling inspections.
3. Jumbo Construction Loans
For larger construction projects, Indigo Mortgage offers Jumbo Construction Loans. These loans provide higher loan limits, making them suitable for borrowers who want to build expansive or luxury homes.
Jumbo loans typically come with stricter qualification requirements, but Ben Lucero and his team assist borrowers in navigating the application process and securing the necessary financing. Whether the borrower is constructing a luxury estate or a multifamily property, Indigo Mortgage can provide the financial support needed to complete the project successfully.
Building on Owned Land or Purchasing New Land
A key consideration in construction financing is whether the borrower already owns the land or plans to purchase it as part of the project. Indigo Mortgage can accommodate both scenarios.
- If the Borrower Already Owns the Land:
- Borrowers who already own the land can use it as collateral to secure their construction loan. In many cases, the equity in the land can be leveraged to reduce the overall loan amount.
- If the Borrower Needs to Purchase Land:
- For borrowers who need to buy land as part of the construction project, Indigo Mortgage offers loan options that include both the land purchase and the construction financing in one package. This streamlined approach simplifies the borrowing process and ensures that all costs are covered.
The Benefits of Working with Ben Lucero and Indigo Mortgage
Choosing the right lender is crucial when pursuing a construction loan. Ben Lucero and the team at Indigo Mortgage bring decades of experience to the table, providing personalized guidance to ensure borrowers feel confident throughout the entire process. Here are some of the key benefits of working with Indigo Mortgage:
- Expertise in Construction Loans: With over 20 years of experience, Ben Lucero and his team have developed a deep understanding of the construction loan process. They are well-versed in handling the unique challenges that come with building a new home, from managing construction timelines to coordinating with builders and contractors.
- Comprehensive Loan Options: Whether a borrower is seeking a One-Time Close loan, an Owner-Builder loan, or a Jumbo Construction loan, Indigo Mortgage has a variety of products to meet diverse needs. This flexibility ensures that borrowers can find a loan that aligns with their financial situation and construction goals.
- Educational Approach: Indigo Mortgage takes the time to educate borrowers on every aspect of the construction loan process. Ben Lucero is committed to ensuring that borrowers fully understand the terms and conditions of their loan, as well as the steps involved in completing a construction project.
- Builder Referrals: For borrowers who are new to the construction process, Indigo Mortgage can provide referrals to reputable builders and contractors. This added service helps borrowers connect with professionals who can bring their vision to life.
Preparing for the Construction Loan Process
Before applying for a construction loan, it’s essential for borrowers to gather all necessary documentation and ensure they meet the lender’s qualifications. Ben Lucero and the team at Indigo Mortgage provide a checklist to help borrowers prepare, including:
- Financial statements and proof of income
- Detailed construction plans and blueprints
- A list of construction costs and budget estimates
- Builder contracts and licensing information
- Land ownership documents or purchase agreements
Having these documents ready can streamline the loan application process and increase the likelihood of approval.
Contact Ben Lucero at Indigo Mortgage Today
If you’re considering a home construction project, now is the perfect time to explore your financing options. Ben Lucero and Indigo Mortgage have been assisting borrowers with construction loans for over two decades, offering personalized service and a comprehensive range of loan products.
Whether you’re a first-time builder, an experienced developer, or someone looking to construct a custom home, Ben Lucero and his team are ready to help. They provide expert guidance from start to finish, ensuring that borrowers feel confident throughout the construction process.
Call Ben Lucero at Indigo Mortgage today to learn more about the construction loan programs available and get started on building the home you’ve always envisioned.