Our construction financing process is as easy for you as it is for your clients. Our construction loan covers the entire cost of the land, construction process, and permanent mortgage financing – and it requires just 5% down. Lot equity may be used.
Builder Tools
resources for construction builders & contractors
We care about making the mortgage lending process as seamless as possible for our customers and business partners — and the construction process is no exception.
Why Work with Waterstone Mortgage?
Our Draw Process
Enjoy true flexibility by requesting draws as needed, without having to meet any set completion points.
Home Loans to Meet Your Clients' Needs
Not only do we offer ideal construction financing, we also have a wide variety of end loan options to cater to your client’s unique situation.
Now, let's get your clients
into their new home.
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Whywork with Waterstone Mortgage for Construction Financing?
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Simplified Draw Process
Our draw process is flexible, allowing you to request draws as needed without having to meet any set completion points.
Day One
Signed request for advance is submitted;
Lien wavier provided; Inspection ordered;
Title company contacted to complete lien search
Lien wavier provided; Inspection ordered;
Title company contacted to complete lien search
Days Two - Five
Title search is completed
showing no liens on property
showing no liens on property
Days Three - Five
Inspection completed & provided to lender;
Lender disburses draw to builder;
Can be wired directly
Lender disburses draw to builder;
Can be wired directly
When you’re ready for a draw, all you have to do is present a signed request for an advance and a lien waiver. Then, we’ll order an inspection and contact the title company to complete the lien search right away.
Once the title search is completed (and shows no liens are placed on the property) and we’ve received a report of the completed inspection, we’ll disburse the draw to you, the builder. This can be wired directly into your bank account. It’s that simple.
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Construction Loan Programs and Financing Options
Our Single Loan Close Construction Program is a unique, affordable solution for homebuyers who haven’t quite found their dream home and are considering a custom build. With a down payment as low as 5%, your clients can create their dream home, even if their funds are not easily accessible.
The Waterstone Mortgage
Construction Financing Process
Construction Financing Process
Step One
Client gets pre-approved
Step Two
Builder acceptance:
Check builder's license, insurance, and references
Step Three
Project review:
Review and appraise plans, specs, materials, and cost
Review and appraise plans, specs, materials, and cost
Step Four
Mortgage approval:
Application goes through processing and underwriting
Application goes through processing and underwriting
Step Five
Closing
Step Six
Construction begins
Step Seven
Final draw request is completed along with a
final inspection, title search, and Certificate of
Occupancy is provided
final inspection, title search, and Certificate of
Occupancy is provided
Permanent Mortgage Financing Begins
End Loan Financing Options
If you have a client looking to move into an existing new construction or a home we did not finance the construction for, we offer a variety of end loan financing options. Plus, we can utilize aged documents up to 9 months (with 95% loan-to-value and a minimum credit score of 700 ), which means your clients won’t have to re-supply documentation.
All loan requests are subject to credit approval as well as specific loan program requirements and guidelines.
Conventional Loans
- No- and low-down payment options available (0-5%)
- Credit score as low as 620
- Fixed- and adjustable-rate mortgage options available
Government Loans
Specialty Loans
- Jumbo loans: No-down-payment options for loans up to $2.5 million
- Medical Professional Loan Program: No-down-payment required for eligible doctors, dentists, and veterinarians
- Powerhouse 100: No-down-payment loan program only requires 2 months of reserves, which can come from a gift
Extended Rate Lock
The rate market can be unpredictable, and your clients may benefit from locking in their interest rate sooner rather than later.
If your client is looking for permanent financing of their newly-built (or soon-to-be-finished) home, we can offer them a long-term rate lock with many of our mortgage loan programs.
- Up to 480-day rate lock — nearly 16 months — for conforming fixed-rate loans
- Up to 360-day rate lock for conforming adjustable-rate mortgage (ARM) loans or jumbo loans
A rate lock is not a commitment to lend. An upfront fee may apply and may vary based on lock term. Final approval is subject to a satisfactory appraisal, adequate hazard insurance, satisfactory flood determination, satisfactory review of title, and underwriter’s final review of all information prior to close. Extended rate lock terms are not offered in the following states: DC, IA, MD, ND, NJ, VT, and WA. In MN the loan amount must be at least $100,000. With adjustable rate mortgages, the interest rate is variable and may increase or decrease every year after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment.
Interest Rate Float Down
When your client locks in their interest rate with Waterstone Mortgage, they are guaranteed the rate will not go higher – but did you know it could actually decrease?
Depending on market conditions 30 days prior to the start of their permanent financing term:
- 90- to 270-day locks can decrease to the current 60-day rate lock rate
- 300- to 480-day locks can decrease to the current 60-day rate lock rate, plus 0.125%
Your clients can contact their loan originator at any point for a complimentary consultation. We can answer any questions they may have and determine if market conditions will allow for a rate decrease.
A rate lock is not a commitment to lend. Final approval is subject to a satisfactory appraisal, adequate hazard insurance, satisfactory flood determination, satisfactory review of title, and underwriter’s final review of all information prior to close. Extended rate lock terms are not offered in the following states: DC, IA, MD, ND, NJ, VT, and WA. In MN the loan amount must be at least $100,000.
