Every Virginia homeowner will need a permanent mortgage unless they are prepared to pay cash for their home. We do not offer in-house financing, but we have relationships with several Richmond lenders who can help you with this part of the process.
There is also the issue of construction financing. Many customers choose to use a co-perm loan (construction to permanent). This is a loan that is designed to start as a construction loan (financing both land purchase and construction draws) and then transform into a regular mortgage once the construction process is complete. This type of loan is popular due to low closing costs that result from one closing that covers everything from lot purchase through the final mortgage product. However sometimes, due to down payment requirements or other issues such as an existing home to sell, this type of loan is not a good fit for our customers.
Another option is for Blue Ridge Custom Homes LLC to finance the construction of the project and transfer ownership of the house to the customer at the end of the process when a permanent mortgage is used to pay for the home. This is basically like buying any existing home. We can buy a lot for you, finance construction internally, and then “sell” the home to you at the end of the process. This option is sometimes valuable to customers who want to use a traditional mortgage or have reasons to prefer a typical home purchase situation.
Generally, turnkey prices start at a cost per square foot (including our overhead and profit) of around $75 per square foot. In the low hundreds per foot we are achieving a more custom house design and level of finish. At $150+ per square foot we are looking at a very custom finish with items like stone floors, high end cabinets, theater rooms, hard surface flooring everywhere, and lots of options–basically all the bells and whistles. In a cost-plus pricing scenario (see explanation below), the cost per square foot of construction will start at around $60 and go up from there (with each level of finish being lower than described above). Of course, the lot itself is separate from the costs described herein. These numbers are meant to be guides, but lot conditions, size of house, unfinished areas, utility costs, etc. will cause each house to vary in terms of cost.
There are many different ways to finance building a new home. We can tailor our approach to the needs of each individual customer, as every situation is different. There is no “one size fits all” for construction financing. We can help make sure that your home is financed in the most cost effective, comfortable way for your situation. Our goal is to identify specifically the best fit for you and help construct a way to finance the project that is most beneficial for your needs.
Contact us for any questions regarding custom home financing.
While Blue Ridge Custom Homes does not offer long term financing internally, we are happy to refer you to local mortgage companies and banks with whom we have worked in the past. This applies to both permanent mortgage solutions as well as coperm lenders. Our customers can benefit from our experience and our other customers’ experiences to allow them to make informed decisions on the mortgage company they choose as opposed to selecting one at random. This decision is important and should not be made lightly. Please let us know if we can point you in the right direction.
Click on the following link to receive a quote from one of our lenders. Just select “Apply Now” and then “Short Loan Application” to submit your information.