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Unlocking Construction Loans: Expert Tips for Building with Minimal Down Payment

sue12851

Updated: 4 days ago



About the Guest(s):

Stacy Schlicher is a seasoned lender with 23 years of experience, currently working for Union Home Mortgage. Specializing in construction loans, Stacy guides clients through the home-buying process with a focus on personalized service and transparent communication. Her extensive expertise helps dispel common myths about construction loans, making home ownership accessible to a wide range of individuals.


Episode Summary:

In this informative episode, Stacy Schlicher from Union Home Mortgage dives deep into the intricacies of construction loans, providing essential insights for potential homeowners. Stacy discusses the flexibility of down payment options, debunking the myth that 20% down is required, and highlights special programs like the VA construction loan with as little as 0% down for veterans. She delineates the important differences between buying an existing home and building a new one, emphasizing the personalized advantages and minimal additional costs of construction loans.


This episode reveals the various steps involved in obtaining a construction loan, from choosing a qualified builder to managing finances responsibly during the build phase. Stacy explains crucial aspects such as how the loan transitions from interest-only payments to principal and interest once the construction is completed. Highlighting her organization's support system, including their concierge service, she ensures that the loan process is transparent and efficient for the buyer. Overall, the episode equips listeners with the knowledge to make informed decisions regarding building their dream homes.


Key Takeaways:

  • Down Payment Flexibility: Construction loans can require as little as 5% down, with special programs available for veterans requiring 0% down.

  • Cost Comparisons: Building a home may incur slightly more costs like inspection fees and permits but offers the benefit of designing a home exactly to one's preferences.

  • Loan Process: The construction loan process includes a single closing, interest-only payments during the build, and then conversion to principal and interest upon completion.

  • Builder Selection: Buyers choose their builders, who must be full-time professionals with substantial experience.

  • Financial Responsibility: It's vital to maintain financial stability from loan approval through the construction phase to ensure smooth completion and transition to permanent financing.


This episode is a must-listen for anyone considering building their dream home. Stacy Schlicher’s in-depth knowledge and clear explanations make navigating the world of construction loans much more straightforward. Tune in for this and more enlightening episodes that bring you closer to achieving your home ownership goals!


If you would like to connect with Stacy or I, don’t hesitate to reach out!

 

Contact me today for a free consultation and let's discuss your unique needs.

 

517-243-1721

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©Sue Dickinson, Associate Broker with Five Star Real Estate

2417 Showtime Drive, Lansing, MI 48912

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