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OUR PROMISE TO YOU
Building or renovating your home is easier with the right construction financing in your plans.
Formed from the merger of two award-winning mortgage companies, Intercoastal Mortgage Company and MVB Mortgage, we are primed to serve our clients with greater options and shorter turn times. In West Virginia, we still operate under the MVB Mortgage brand as a registered trademark of Intercoastal Mortgage, LLC and continue to have an extremely strong relationship with MVB Bank throughout the state.
We offer competitive pricing and cutting-edge residential mortgage loan programs to meet all your home buying needs. We offer a broad menu of loan options, including Conventional, Non-Conventional, VA, FHA, USDA, jumbo, super jumbo, construction, renovation, and bridge loans.
As a direct lender, we control the process from start to finish. We make the loan decision and most of our loans are processed, underwritten, and closed in-house locally. Our veteran team of loan officers and mortgage professionals are equipped with a level of experience that is second to none. We look forward to serving our communities and helping our clients achieve the American dream of home ownership.
A home construction loan is a short-term loan that provides the funds required to build a residential property.
These loans are usually one year in duration, during which time the property must be built and a certificate of occupancy issued.
A construction loan can be used to cover the cost of the land, contractor labor, building materials, permits and more. It’s important to discuss these items with your Loan Officer at MVB Mortgage, specifically what will be included in your loan.
Construction-to-permanent loans (only available in West Virginia) provide the funds to build the dwelling and for your permanent mortgage as well. In other words, with a construction-to-permanent loan, you borrow money to pay for the cost of building your home, and once the house is complete and you move in, the loan is converted to a permanent mortgage. Once it becomes a permanent mortgage you make payments that cover both interest and the principal.
Because construction loans are on such a short timetable and they’re dependent on the completion of the project, you need to provide MVB Mortgage with a construction timeline, detailed plans and a realistic budget.
Once approved, the loan will contain a payment schedule to the builder/contractor (also known as a draw schedule) that follows the project’s construction stages. You are required to make interest only payments during construction on the outstanding loan balance. Unlike personal loans that make a lump-sum payment, MVB Mortgage pays out the money in stages as work on the new home progresses. While the home is being built, MVB Mortgage will have inspections completed by an independent third party to ensure the work is completed prior to releasing any requested funds from your loan. You are only obligated to repay interest on any funds drawn to date until construction is completed. There isn’t escrow collection on construction loans, so taxes, insurance, and all other costs are billed to you directly during construction and escrows are established when your loan coverts to the permanent mortgage.
At first glance, getting approval for a construction loan appears similar to the process of obtaining a mortgage. However, it does come with a few more requirements.
Prior to making an application for a construction loan, you should have an idea of your project budget at minimum.
Our MVB Mortgage loan officers review a borrowers’ employment history, savings, income stability and ability to repay the loan. A property appraisal will also be obtained to support the value of the collateral.
To qualify, you’ll likely need:
Because construction loans are more complex transactions than a standard mortgage, it is best to find a lender who specializes in construction lending and isn’t new to the process. That’s why MVB Mortgage should be your first call. Our loan officers are experienced with construction loans and are aided by a dedicated construction department.
Contact us today to learn details about our specific programs and procedures.
As a direct lender, we control the process from start to finish. We make the loan decision and our construction loans are processed, underwritten, and closed in-house locally. Our veteran team of loan officers and mortgage professionals are equipped with a level of experience that is second to none.