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Financing

At LPD Custom Builders, Inc. we offer a variety of finance options.

The most popular option is:
We finance your home or the Homeowner acquires a construction loan with
10% down.

• LPD Custom Builders, Inc. is approved with many banks that lend money for  construction, giving our clients the freedom to choose an organization they are comfortable working with. Or if you do not have a  preference we can recommend or choose a bank for you.

Many first time homeowners are not familiar with the financing process,
so we have outlined the steps below:

Example Homeowner: 10% down
$100,000 for land
$200,000 to construct custom home
$300,000 total cost of home
  • Homeowner will fund $30,000
    [10% of total loan]

  • A $4,000 deposit to go into contract on land is required.

  • A $4,000 fee is paid to LPD Custom Builders, Inc. at signing of contract.
    This amount will cover the costs of surveys, permits, architectural plans etc.

  • Homeowner will then put down the balance of the 10% deposit
    ($21,000) at closing of land
The bank will fund the balance of the money due at the closing of the land and the property will then be put into the homeowners name. The amount to be funded by the bank in this case is: $74,000 for the land.
The homeowner will only pay interest on the $74,000
for the land.
LPD Custom Builders, Inc. will clear the land, pour the foundation and receive the next check.
The Homeowner will then only be paying interest on the land and the first check from the bank.
The money funded by the bank loan will be used towards construction of the house by LPD Custom Builders, Inc. This will be executed in stages authorized by the bank and subject to bank inspection. There are normally 5 bank inspections.
Homeowner pays interest on money that bank disperses after the check is made by the bank. Once the new home is completed the loan gets converted to an end loan which can be at a fixed or adjustable rate.


This process has been very successful with all of LPD Custom Builders, Inc.
customers choosing the construction loan method.