When it comes to building your dream home, you may have checked the box on selecting your architect and interior designer, pinned your favorite styles, and watched too many HGTV shows to count. But one thing that may not be at the top of your inspo boards is a bank.
Whether you’re selecting the perfect-for-you lot, building a new custom home, or both, you have to set the right foundation first — and SouthStar Bank firmly believes this, too. They can provide the financing you need to get started on your dream project.
As a people-first, community-minded Texas bank, they’re dedicated to offering personalized service every step of the way in the home-building journey. Their knowledgeable lending team is experienced in the construction process and will work with you to get pre-qualified, understand the realities of your budget, create a financial plan, and guide you through the phases of funding your custom home.
The first step in building a new home is identifying the property. Through a raw land or lot loan, SouthStar Bank can help you secure the site until you’re ready to build. Land loan terms are typically 12 months or three years, depending on how much time is needed before converting to a construction loan.
Once your plans and budget are finalized with your builder, you’re ready to shift to a construction loan, which is a short-term loan of generally 12 or 18 months, depending on the size and budget of the home you’re building.
SouthStar Bank typically uses the down payment on the land toward the construction loan and, in some cases, lot appreciation may contribute to the required down payment.
Construction almost always requires non-traditional financing because funds are advanced toward a home that does not already exist. Because construction loans are more complex, it’s so important to work with a partner like SouthStar Bank that has experts who are specialized in construction lending. They can also advise on construction loan options that roll into long-term mortgage financing when your dream home is complete.
With more than 100 years of lending expertise, SouthStar Bank understands every step of the home-building journey and was recognized as a Top Austin Mortgage Company by the Austin Business Journal.
“We are about to wrap up our second loan with SouthStar Bank; our first was a land loan and the current is a construction loan,” says client James A. “I cannot say enough about what a fantastic job they did. They worked both loans and were extremely professional and went above and beyond to deliver. I would highly recommend them to anyone. Their communication and responsiveness were spot on.”
Locate your nearest branch in the Austin area to speak directly with a lot loan and construction loan professional, or visit the SouthStar Bank website to explore your loan options and begin the application process.
All loans subject to approval. Other fees and restrictions may apply. SouthStar Bank NMLS #410624. Member FDIC. Equal Housing Lender.