A new house is likely one of the biggest investments that you will make in your lifetime. Making a purchase of that size can often be intimidating. As you are researching a new home build, you’ll find that builders & banks offer a variety of different financing options.
Fine Line Homes has worked hard with lending partners to develop a special program that will offer financing options with significant savings and benefits over traditional construction loans. This program, combined with our price protection guarantee after you start construction, lets you know how much your new home will cost so that there are no surprises.
Our Special Financing Program lending options are based on four key features: No Interest During Construction, a One-Time Upfront Appraisal, Interest Rate Lock, and Closing on Your Loan Upfront.
No Interest During Construction:
Fine Line Homes takes on the construction cost of your new home, so that you don’t need to make payments on the interest, providing substantial savings and easing cashflow concerns. You will never see a bill for these interest payments – even after construction is complete!
Why is this important?
Traditional Construction Loans require you to pay interest on the draw amounts.
For example: If you used a Traditional Construction Loan to finance a new home that is valued at $500,000 for a 10-month period with a 6.5% interest rate, you could be responsible for paying approximately an additional $10,000 in interest.
When you finance your new home through Fine Line’s Special Financing Program, we eliminate draws until the home is complete, thus eliminating interest payments during the build.
One-Time Upfront Appraisal:
Your home will be appraised prior to the start of construction, ensuring that the value of your new home supports the loan value. Without a second appraisal, there are no surprises that would require additional financial arrangements after your build.
Why is this important?
Some loans will require you to have an appraisal completed on your home both prior to the start of construction and after construction is complete. Having two separate appraisals can lead to a discrepancy in the appraisal amount & additional cash coming out of your pocket.
Interest Rate Locked:
The loans within our program lock your maximum interest rate at the time of approval with the option, on certain loan products, for the interest rate to float down if the interest rate environment improves prior to loan modification.
Why is this important?
Interest rates are always fluctuating – and if you are not “locked” and the rate goes up, it could lead to you paying more interest than anticipated.
For example: Traditional Loans lock in the interest rate at the end of the build. If your interest rate was 4% at the beginning of your build, but 7% at the end of the build, you’re stuck with the higher rate.
When you finance through Fine Line’s Special Financing Program, your interest rate is locked at the beginning of construction – ensuring you will not pay a higher rate, even if the general interest rate goes up during the build. However, if the interest rate decreases, certain loan products within our program allow the interest rate to “float” down to a lower rate (if applicable).
Close On Loan Upfront:
The loans offered under our special financing program close prior to the start of construction giving you the benefits of no additional appraisal concerns at the end of construction, known interest rates, and no responsibility for interest payments during construction.
Why is this important?
Closing on your loan upfront allows you to remove the uncertainty of interest rates, additional appraisals, and interest payments that may come with closing on a loan after construction.
Many traditional loans, close after construction is complete. This means that the interest rate and final appraisal can have large impacts on the details of your loan.
How does this compare to traditional financing?
Most builders will require you to get a traditional end loan or a traditional construction loan to finance your build. Fine Line’s Special Financing options combine the desired elements of both loans. Use the table below to see how our Financing program compares to traditional loans.
| FEATURE | FLH PROGRAM | TRADITIONAL CONSTRUCTION LOAN | TRADITIONAL END LOAN |
|---|---|---|---|
| Interest Rate Lock | Upfront at Loan Initiation | Timing Varies | End of Construction |
| Appraisal Timing | Pre-Construction | Pre-Construction | Post-Construction |
| Close on Loan | Beginning of Construction | Beginning of Construction | After Appraisal (Post-Construction) |
| Interest Paid During Construction | Zero | Interest paid on draw amounts | Zero |
For any Financing Program questions – please contact Teresa at 866.806.4420
For a list of lending partners offering products within our program – visit our Special Financing page.
