Construction loan recommendations

[MountainMuley]

I know, not a good time to be building a house! But we have bought the property and have developed it and are living in a trailer while we build. So now it’s time to get a loan closed. Ideally I would like to work with a small bank/credit union and stay away from the big banks, but a one time close loan is appealing with the interest rates on the rise!

I am in NW Montana, Flathead valley to be specific. Any recommendations from you guys?

Thanks all!

 

[kfili]

I work for Movement mortgage, we have a one time close through a broker partner. Send me a PM and I can get you connected with someone licensed out there if your interested (I'm licensed in VA). Look up

 

[missjordan]

For the last several years I’ve switched all my banking to Glacier Bank. Been very happy with them. They have several locations around the Flathead.


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[MountainMuley]

Thanks guys, kfili, I will shoot you a message!

 

[String&stick]

I don't like them in the ag world But Farm Credit has a partner company that has a pretty good one close, construction loan product. I know a few people that have used them here in Nebraska and had a very good experience.

 

[dreamingbig]

Stockman Bank does a decent construction loan.


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[ShortMountain91]

I used farm credit for mine that I finished up in November and they were absolutely excellent. Can't say enough good things about them. I also did a one time close then worked out a new rate on the 30 year after the house was done. Again nothing but positive experience with them. They were also great on a tractor loan.

 

[svivian]

I would look for anyone who offers a 1xclose construction loan where you can lock in the rate upfront. With the way rates are changing you don’t want to be stuck with a higher bill at the end. I know Zions Bank offers such a program

 

[grfox92]

Are these construction loans 20% down? Has anyone found one with a lesser down payment?

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[Yellowknife]

The only ones available in my market are 20% down or more. Usually that is done in land equity (IME). Ideally you own the land outright and they just count the full value + any improvements towards the 20%. If not, you need to bring cash to closing.

I can't help with a bank in Flathead, but I can tell you I struggled last year with finding a local bank here even willing to do a construction loan at all. Everyone's staff was so eaten up with refi's, that they just didn't have time to deal with with the relatively low return for that product, and just paused doing them. Hopefully that has eased somewhat. I ended up using a national lender (Prime Lending) and then going back to a local credit union for the long term. I wasn't thrilled with using the national lender... they had a local originator, but then I had to deal with someone down south for the loan draws, and communication could be a challenge at times.

I've done a couple different types of loans. The first was geared towards the "owner-builder" and allowed as many draws as needed and reimbursed to us directly from receipts/invoices. It was good when acting as the general contractor, but involved a lot of paperwork. The second was geared toward using a licensed General Contractor and allowed a set number of draws (5 in my case) and paid out to the GC directly. Make sure you know what kind you want, and how they work.

The construction loan process is a huge amount of work. I've sunk hundreds and hundreds of hours into those things!

Yk

 

[ResearchinStuff]

if you're a veteran or active duty there is a 0 down, va construction loan you can use. Not a lot of lenders do it so rate shopping is a bit tough, but I used security america mortgage and they were very easy to work with.

 

[PNWGATOR]

Appreciate this thread!

 

[dreamingbig]

Most are actually 70 or 75% max LTV. It is less frequent to go to 80.


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[Johnny Tyndall]

Whitefish and Clearwater credit unions both serve that area and are pretty good sized. I'd look into USDA Rural Development loans as well, the lenders you talk to should know about those.