WHAT IS A CONSTRUCTION LOAN? See our *Republic Bank Link for full details.
It is a temporary loan that is normally issued for a six-month term. Its payments are usually interest only on the amount that has been drawn from the loan. A typical construction loan may have from 5-10 draws taken from it. Billman normally utilize 3-5 draws per home. Your land purchase may be funded in your first draw. Once construction of your home is complete, there will be another closing to fund your loan from secondary market where the remainder of your payments will be paid over 15 or 30 years.
WHEN DO WE GET THE BUILDER INVOLVED?
RIGHT NOW! ASAP! Your builder needs to be involved with the whole process, from selecting the land, to making sure the land is buildable, to meeting with the septic engineer/designer, to make sure the home is selected for the lot. One big misstate people make is trying to make a lot fit a house. The reverse is true. By trying to force a home design on a lot, you may be opening a design mess that, for example, may lead to a leaky basement because of drainage traveling the wrong way.
HOW MUCH MONEY DOES IT COST TO DESIGN AND ESTIMATE A HOME?
With Billman, NOTHING. We consider this is the most important part of our services to you. We are prepared to draft, redraft, estimate, a re-estimate your home for you and the only time you need to show us the money is when you sign a contract for us to build your new home.
WHAT KIND OF NEW HOME WARRANTY COMES WITH A NEW HOME?
Minnesota Statute Chapter 327A mandates that every contractor in the state of Minnesota warrant their work. The Statute states there is a one year everything warranty, two year electrical/mechanical warranty, and a ten-year structural warranty. These Warranties do travel with the home not the home owner.
5110 MILLER TRUNK HIGHWAY
DULUTH MN 55811
OFFICE: 218 729-7570
GREGG'S FRONT POCKET:
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