Recently Funded: 4500+ Sq Ft Custom Built home in Salt Lake City, Utah
- Size: 4,500+ square feet of living space
- Design: Open-concept floor plans, vaulted ceilings, large windows with panoramic views of the Wasatch Mountains, and an expansive outdoor patio for indoor-outdoor living.
- Premium Finishes: Gourmet kitchen with top-tier appliances, custom cabinetry, hardwood flooring throughout, and spa-like bathrooms.
- Eco-Friendly: Energy-efficient systems including solar panels, smart home automation, and high-performance insulation.
Private Capital Lenders recently provided a $1.1M construction loan to fund the development of a luxury custom home in the desirable area of Salt Lake City, Utah. The client envisioned a spacious, energy-efficient home that would feature high-end finishes, stunning mountain views, and modern amenities tailored to their lifestyle.
The loan was structured as a short-term construction loan with a term of 18 months, providing sufficient time for the building process. Draws were released based on the completion of major milestones, ensuring the project remained on track and the builder received funding at each stage of construction.
The loan offered flexible terms to accommodate the complexity of the custom home build, with competitive interest rates tailored to the needs of both the borrower and the project.
Salt Lake City is known for its exceptional quality of life, access to outdoor activities, and growing economy. The city continues to attract both families and professionals looking for new homes in a desirable location. The buyer’s choice to build in this area reflects both the strong market demand and the natural beauty surrounding Salt Lake City, making it the perfect setting for their dream home.
FAQ
Most frequent questions and answers
This construction loan has a term of 18 months, which is typical for custom residential builds. The loan is designed to cover the construction phase, and upon completion, the borrower can either refinance into a permanent mortgage or pay off the loan through other means.
Disbursements for a construction loan are made in draws, which are installments released as the builder completes specific milestones in the construction process. For example, a draw may be issued after the foundation is completed, another after framing, and so on. The lender ensures the project progresses according to plan before releasing additional funds.
Interest rates for construction loans generally vary depending on the borrower’s creditworthiness and the lender’s policies. The rate for this loan was competitive, based on the borrower’s financial profile and the unique requirements of the custom build project.
Yes, a down payment is typically required for a construction loan. For this project, the borrower contributed approximately 20% to 30% of the total loan amount as the down payment. The exact amount varies depending on the borrower’s credit history, project type, and other factors.
Yes, construction loans can sometimes be used to finance both the purchase of land and the construction of a home. If the borrower does not already own the land, the loan can cover both the acquisition and the development costs, simplifying the process.
While a higher credit score is preferred, it is possible to secure a construction loan with less-than-perfect credit. However, the borrower may need to make a larger down payment or provide additional documentation, such as proof of income and a detailed construction plan. The loan terms may also be less favorable if the borrower’s credit history is not ideal.
Once the home is completed, the construction loan can either be paid off by the borrower or converted into a permanent mortgage (often called a construction-to-permanent loan). This process allows the borrower to secure long-term financing and settle the construction loan balance.
- Your creditworthiness: A higher credit score can lead to better loan terms.
- Down payment: Be prepared for a significant down payment (typically 20%–30%).
- Builder selection: Choose a reputable builder with a solid track record of completing projects on time and within budget.
- Project timeline: Understand the estimated timeline and ensure you can manage the construction process.