We can do new construction loans through our partner lender, United Wholesale Mortgage. We don’t finance the actual construction in our portfolio at Police Mortgage.
I will tell you, it is trickier than a police home loan for an existing property because the builder has to get approved by our lender, United Wholesale Mortgage. This means that they have to fill out paperwork with their tax ID number and other information such as the credit rating for the actual builder. While it is trickier it’s far from impossible. We can do it.
Alternatively, the buyer could find another lender to fund the construction of the home. Later we could refinance that into a law enforcement house loan such as a traditional 30-year fixed mortgage.
There are two aspects to a construction loan. There’s the construction loan and then the end loan.
The construction loan is generally for a short period of time. It is usually based on adjustable-rate financing. The loan also involves disbursements of funds based on the process. Some construction lenders will do three disbursements: the initial disbursement, then after the house is roughed in for permits, and then a final disbursement.
We see very few new construction loans in the Midwest where we are based. However, the work we do with first responders in Arizona has allowed us to become knowledgeable on new construction.
New construction is tough because the builder almost always has their own representation for lenders. So, the builder is going to be very aggressive when it comes to recommending their own finance connection because they obviously want to have control of that process.
The new construction loan is a very unique product. Like any professional patrolman credit union, we’re here to help. As we said before, we love having conversations with first responders about their goals and their future home needs. If it is a new construction loan that they need, we are here to help them.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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