Building A Home Guide
Customization
The primary advantage of building your home is that it can be built to your specifications.
New Materials
A new home will have new wiring, new plumbing and will be up-to-spec with building codes. They are also more energy-efficient than older homes.
Costs
Although purchasing a home may be less expensive upfront, once you include renovations, maintenance, and upgrades, it could be more expensive than building.
What Is A Construction Loan?
When you purchase an existing home, the financing process is complete when the loan closes. With a construction loan, the closing is only the beginning. A construction loan is a short-term loan to fund the construction of your new home. During construction, you will make interest-only payments to FORUM on the outstanding balance of the construction loan until the home is complete.
When building is complete, your construction loan will be converted to a long-term mortgage. Your FORUM Mortgage Advisor will work closely with you to determine an appropriate loan amount. It is a good idea to get pre-approved ahead of time so that you will know how much home you can afford.
FORUM Construction Programs:
- Conventional Loans - Up to 95% Loan to Value
- Jumbo Loans - Up to 90% Loan to Value
- Lot Loans - Up to 85% Loan to Value
FORUM Lending Solutions:
- Lot Loans - As little as 15% down
- Construction Loans - As little as 5% down
- Up-front rate lock for permanent financing
- Build your dream home while you sell your existing home
- Expedited draw and builder communication through our FORUM Builder Services Department
Select Your Builder
Research different builders based on their industry experience and reputation, while also considering important factors such as your budget, needs and style of home.
Find The Perfect View
Find the perfect piece of land to build on by having your REALTOR® or builder assist you in the research. Already own the land where you plan to build? The value of that land can count toward your down payment on the loan.
Design Your Home
Work with your builder to draw up home plans and specifications. These will be used to help determine the appraisal value of the home that you are getting ready to build.
Start The Loan Process
FORUM will order the title report, plans and specs appraisal to help streamline your loan process to ensure an expedited closing date on the construction loan.
Begin Building
Once the construction loan is closed, FORUM will facilitate an agreed-upon draw schedule of payments to your builder as the home processes through the different phases of home construction. Don’t worry – FORUM will be with you every step of the way if you have questions throughout the process.
More Questions?
To apply for a mortgage or get answers to questions, call our Mortgage Specialists at 317-558-6420 or 866-367-8600. Or email us at forummortgage@forumcu.com.
About Your Permanent Loan
Your loan automatically converts from interest-only to a predetermined permanent loan program upon the completion of your new home. If you change your mind on the permanent loan, you can always choose to refinance the loan into a different loan product with FORUM. See your Mortgage Advisor for details.
Welcome To Your New Home!
After the Certificate of Occupancy (C of O) is received, the final inspection has happened and the title is updated, we’ll disburse the remainder of your loan proceeds (final draw) to the builder. Now it’s time to pack your things and call the movers!
For even more information on the mortgage process and owning a home, visit our Resource Center.