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The Guide to Custom Home Financing

Navigating construction loans, draw milestones, bank inspections, and transition mortgages.

Construction Loan Mechanics

Banks issue construction funds in stages called 'draws' as milestones are completed and verified by independent bank inspectors.

Prequalification Requirements

Financing custom builds requires signed builder contracts, detail logs, site plot plans, and builder warranty documents.

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Planning Checklist

  • Obtain bank pre-approval bounds
  • Establish draw milestones outline
  • Allocate 10% contingency cash pool
  • Obtain builder liability certificate