Sometimes after careful decision making you realize that instead of buying an older home in need of renovations you decide to build a custom home for yourself.
You must get preapproved. As your mortgage broker makes this process easy and convenient.
You will need 5% downpayment which can be from a persons own resources such as savings and RSP's. In some cases a gifted downpayment is acceptable as well. Ultimately the more money you have to put towards a downpayment will help me help you in getting a better rate.
Signed and accepted copy of building contract, builders construction specifications (blueprints) of the house to be built, plan showing legal description, dimensions of property, proposed location
The proposed house is built in stages. Your mortgage is advanced in stages much like a purchase plus improvements mortgage which I discussed in an earlier blog.
The first-when the basement is ready to backfill
The second-when the interior is ready for drywall
The third-when the drywall is installed and taped
The forth is when the house is competed
An inspection is completed prior to funds being advanced
The mortgage insurers will pay for 4 of the inspections but anymore than that the borrower is responsible
Eligibe Builders/Contractors
1. The individuals own the land & contract a builder to rebuild the home
2. Self Built Homes where the borrower builds the home & subcontracts out some of the work but ultimately will occupy the home. The client must be a registered trades person.
3. Builder owns the land and once the purchase contract is signed and money is advanced to begin building a new home.
Lenders prefer a builder that provides New Home Warranty but in some situations exceptions are made.
For further information any potential home buyer should visit http://anhwp.com/
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