Facebook Live - Tilson's EasyBuy Program Versus A Construction Loan - March 28, 2020 

We’re so glad you’re enjoying the videos!

Wonderful. Glad we were able to help.

Hi Marisa, I'm glad you enjoyed the video. We do have a gift we give after building. Our sales counselors usually hand deliver it to our customers when they come to see your home. I hear yours is coming soon.

TilsonHomes yes thank you that is awesome, just one more reason to choose this builder they care enough to come check on you after you’ve been in your home a while to make sure everything is good! As well as bring a welcome home gift. Thank you again love it ❤️😊👍🏻👍🏻.

If a buyer's qualification and final mortgage approval are contingent upon the sale of their existing home because they cannot qualify for 2 mortgage payments, then yes - this is normal.

You would need to be able to qualify for a mortgage with a third party lender. Then, you would need you to have 10% equity in the final value of your home (land plus home cost) before we could begin construction. Using the example of a $300,000 home being built on a $75,000 piece of property... the total value of the final home is $375,000. 10% of that is $37,500. That's how much you would need to have paid on the land for us to begin construction. Feel free to give us a call at 877-416-2043 if you have any other questions. We'd be happy to explain further.

The pre-approval process is very similar to the process for a regular home. If you'd prefer to get a budget idea without pulling credit, one of our in-house design consultants can help you figure out how much you would most likely qualify for and set the budget from that estimate. When you're ready, we would connect you with one of our preferred lenders for the formal approval.

Hi Orlando - We actually only do slab foundations.

Yes with many builders a construction loan is required. Not with us, though!

Thanks so much! We’re glad you found this helpful. As you’re looking for builders, you may want to also look at this one. It gives you some great info on how to compare builders. www.tilsonhomes.com/blog/choosing-the-right-custom-home-builder/

Thank you for your feedback, we're glad you enjoyed the video! We look forward to having you join the Tilson Family!

Hi! USDA loans are very difficult to use for our process. Their requirements for the homes they will finance are very strict and often have square footage and value caps. It’s be best to talk with one of our preferred lenders about which loan program would work best for you. The casita can be built first and, like all of our homes, can be customized to suit your needs to increase the size of the rooms. If you need to finance the casita build, we may need to consider one of our smaller homes (like the San Antonio). It can difficult to find comps for homes with less than 3 bedrooms. Most mortgage companies also require a full kitchen in the home, which is not included in the casita design as standard. The La Salle base price does include the 2-car garage. The extra cost you’re referring to sounds like the cost of a 3rd bay.

Okay, very well answered!! Thank you!! Just for clarification, I would like to have the casita built first with the equity from the paid for land. I am doing this all on my own for the first time and I am ding my best to avoid a mound of debt. According to my deed restrictions, I am allowed a casita or similar at least 800 sq ft as long as it is 150 ft from the main entrance/street. This is a 2.5 acre piece of land so I’m hoping there wouldn’t be any issues with building the casita. After paying for the the septic system, and the well and electricity tap plus gas (propane) in full, I would then like to finance the La Salle using an FHA loan. I am only approved for $342,500.00 FHA loan at this time and that is not enough for the model that I am interested in including the the bonus room, Alternate kitchen, cathedral ceiling for the rear covered porch and family room and the box beam ceiling in master bedroom box beam & fireplace. I am needing to purchase and finish portions of this project in 3 different increments in order to make it affordable for me to enjoy while living on the land.because in the meantime, I will need to use my savings in the meantime to save about $50,00.00 so that my mortgage rate will be at a comfortable rate that I will be affordable for me for the lifetime of the loan.

@@TilsonHomes I don’t necessarily need to finance the Casita build but I will need to tack on another 8 months in order to pay cash for that.

Ok. We’ll need to take a look at your deed restrictions to very they will let you build the casita first. Some restrictions are specific in the order of buildings or place time constraints on how long you can have a secondary building without the main residence in place. I’d recommend reconnecting with Amy or Catherine in Huntsville to get them to take a look and help you plan your path forward.

Hi Desiree, I'm glad this explanation was helpful. To answer your question... no, the land would not need to be paid off. We would need you to have 10% equity in the final value of your home (land plus home cost) before we could begin construction. Using the example of a $300,000 home being built on a $75,000 piece of property... the total value of the final home is $375,000. 10% of that is $37,500. That's how much you would need to have paid on the land for us to begin construction. You would then continue to make the payments on the land while your home is under construction. Feel free to give us a call at 877-416-2043 if you have any other questions. We'd be happy to explain further.

@@TilsonHomes thank you. Is there a way for me to email you all with all my questions? I'm blown away by this information and didn't realize how much money we needed to buy land plus a construction loan. I have a lot to just to put into perspective and need a little guidance if you all don't mind. Thanks again

@@desireechurchman9623 absolutely. You can send an email to TilsonNews@tilsonhome.com.

Please call us at 877-416-2043.

That's correct. Tilson does not require a construction loan or interim financing like other custom builders, so there isn't any interest accruing during construction. When the home is finished, you close on your permanent mortgage like any other home financing situation, and payments to your permanent mortgage lender typically start 30-45 days after that closing date.

Glad it was helpful!

Yes, we can work with VA loans. We'd also encourage you to explore the TexVet program. Many of our customers find it to be a better program for them since there are less fees.

Hi John! Thanks for the great question... the process is exactly the same with the Veteran's Land Board and a TexVet Loan. When you get your land, the land board is going to issue you a warranty deed with a vendor's lien on the land. You'll make your payments on that land loan throughout construction until we're ready to close on your home. At closing whatever balance remains on the land note would be rolled into your final mortgage with TexVet.

No ma'am. You won't need a loan if you're paying cash.

Absolutely. EasyBuy is not a limited time offer program. This is the way we've built homes for many, many years and we don't plan on changing it.

Hi Rachel, you would need to finance the land separately until your home is completed. You would make your land loan payments during construction. When we close on your new home, any remaining balance on your land note would be rolled into the final mortgage.

@@TilsonHomes thank you for your response. If I borrow to buy the land will the funds I used to buy the land be rolled into the loan including the cost to build? Or will I still have a land loan and the loan through tilson

​@@rachelkathleen_ It's probably best to chat this through on the phone or in person. Our financing process is completely different from other builders. Other than your $1500 deposit, Tilson does not get paid at all until your home is completed. Please call one of our new home specialists at (877) 416-2043. They can explain how it all works.

@@TilsonHomes okay thank you!

Hi Cynthia, as long as you can get approval from a mortgage lender for your final mortgage, you would qualify for the EasyBuy program.

TilsonHomes, thank you for the information.

You’re very welcome.