Congratulations on building new homes in the State of Pennsylvania. We would like to offer assistance to both you and/or your agent by offering the Sail Mortgage Pre-Approved New Construction Mortgage to qualified buyers of new construction. We also work with you and homebuyers to offer special mortgage financing programs, rates and fees, to make buying and financing new construction easy and affordable.
Please call (724) 934-2800 to discuss the Sail Mortgage Pre-Approval and New Construction Program in further detail.
Provides protection from rising interest rates while your home is being built.
- Available with 3, 5, 7, and 10-Year adjustable-rate mortgages (ARMs).
- You can lock in your interest-rate range for 3-6 months at no additional cost.
- Extended locks may be available for up to 12 months.
- Program switch or one-time float down option to a new, lower rate available within 60 days of closing.
- Obtain financing for loan amounts up to $2 million.
- If interest rates go up, you are protected for up to 12 months with our interest rate lock-in option.
- If interest rates fall, you may choose to exercise your one-time float down option.
- Ability to switch to another eligible product, including fixed-rate and government products.
There are some common features to a construction loan. Construction loans typically require interest-only payments during construction and become due upon completion. Completion for homeowners means that the house has its certificate of occupancy. Construction loans may be variable-rate loans priced at a spread to the prime rate or some other short-term interest rate. You, the contractor and the lender establish a draw schedule based on stages of construction, and interest is charged on the amount of money disbursed to date.
Another variable in construction loans is how much of the project cost the lender is willing to lend. If you already own the land, then that can be considered as equity on the construction loan. Many homeowners use construction-to-permanent financing programs where the construction loan is converted to a mortgage loan after the certificate of occupancy is issued. The advantage is that you only have to have one application and one closing.
Depending on your view on interest rate trends, you could also purchase a rate lock agreement valid through the expected completion of the construction. Just make sure you allow for the inevitable construction delays.
A construction loan, unlike a mortgage, isn’t meant to be around for a long time. If you’re taking out a $200,000 construction loan for six months and you pay an extra 0.5 percent on the loan, it costs you an additional $250. (Assumes an average $100,000 loan balance over a six-month construction period.) You may be willing to pay a higher rate on the construction loan if you’re doing construction-to-permanent financing and can get better mortgage terms or a longer, better rate lock from that lender.
Because of our experience and construction loan volume, our lenders give us certain privileges that we pass along to you. These benefits include: quick processing for construction loans, wholesale pricing for construction loans, and in some cases – guideline exceptions. These benefits save you time, money, and aggravation.
So when you are using a contractor for your custom home we will use our experience and expertise to secure the best and most economical home loan for your building needs.