Helping People Build New Homes
With the help of technology and consolidation of processes, several lenders are concentrating efforts on lending to home buyers who are building their homes.
American Home Bank, Lancaster, PA, announced that it is expanding its mortgage business by offering a new "construction to permanent loan" product. The loan permits a buyer to lock in a permanent mortgage rate before construction begins. Home buyers also benefit from a single loan closing.
Through the use of the company's construction loan servicing technology, it also allows builders to correspond work processes with the flow of funds. The technology allows loan- and inspection-related documents and images to be posted and accessible online, speeding up the inspection process and cutting down on paperwork. The loan is being marketed to builders that construct 20 to 250 units per year.
Webster Bank, N.A., Waterbury, CT announced that it has formed the National Construction Lending Center to expand its marketing of construction loans. The center will offer a number of residential construction loan products for new homes and major rehabilitation of older homes. As with American Bank's product, buyers have a single closing process, and they don't have to worry about rate changes while their home is being built.
Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 2, 4/05
First published on 04/01/2005