BUILD YOUR CUSTOM DREAM HOME
CONSTRUCTION FINANCING
Build a home that perfectly caters to your family’s needs with CMG Home Loans. Whether building a new custom home or renovating your current one, we have the mortgage options, including discounted closing costs on your permanent mortgage, to help make your dream come true.
Construction Loan Highlights
- Dedicated, In-House Construction Team.
- Available in All 50 States & Washington, D.C.
- Include land in the financing or build on a lot you already own..
- Credit scores as low as 680
- Up to 95% financing available
- Easy draw process, access your portal anytime.
- Make interest-only payments during the construction phase.
- Conventional and Jumbo mortgage options.
Construction Loan Eligibility
Anyone can apply for Construction Loans — whether you’re building a new home, renovating a current home or tearing down and building new. However, all applicants must meet certain loan requirements, including:
- Proof of employment history and verifiable income
- A minimum credit score of 680
- A debt-to-income ratio (DTI) of 45% or less (see below)
LOAN DOWN PAYMENT OPTIONS
Many people believe that you need a 20% down payment for a Construction Loan, and while a 20% down payment means you won’t have to pay mortgage insurance, there are also low-down payment options. Qualified buyers can put as little as 5%* down on their Construction Loan payments and, for second homes as little at 10%**.
Loan Debt-to-Income Ratio (DTI) Requirement
Like your credit score, your debt-to-income ratio (DTI) also shows the lender how you manage your finances. Your DTI is your total recurring monthly debts (student loans, credit card payments, etc.), divided by your monthly pre-tax income, expressed as a percentage. For example, if your rent is $1,000 per month, your car payment is $500 per month, and your monthly credit card payment is $800, your total monthly debt is $2,300. If your gross income is $6,000 per month, then your DTI is roughly 38% (2,300 ÷ 6,000 = 38.3).
When applying for a Construction loan, you should strive for a DTI lower than 45% – anything higher might not qualify for a loan approval. When applying for any loan, the lower your DTI, the better.
Properties Eligible
Construction Loans used to finance any type of property – primary residences 1-2 units and second-homes 1 unit, which must be zoned residential.
VA LOAN
100% financing for eligible Veterans, Reservists and Active Duty Personnel
VA LOAN
100% financing for eligible Veterans, Reservists and Active Duty Personnel