Finance Your Home
Obtaining financing is a crucial first step in any home-building project. If you are looking to finance your Blu home using a bank or other lender, they will classify your project as new construction and will therefore offer a Construction Loan, which differs substantially from a traditional mortgage. Once construction is complete, your loan will be converted to a traditional home loan (mortgage).
Construction Loans are short-term and often structured as interest-only lines of credit. They are distributed in disbursements, or “draws,” as work on the project is completed, so it is important that you choose a financial institution that can accommodate the draw schedule associated with factory construction. Blu has a specific draw schedule based on where you are in our process.
Many of our clients choose to take advantage of the numerous green incentives for which our homes may qualify in certain areas. Combined with lower monthly utility costs from living in an energy-efficient home, these incentives provide yet another benefit of green living. Please contact Blu Sales for an overview of the incentives that might be available to you.
Our Included Services
We are always happy to give you some initial guidance on lenders and financing, however we cannot take responsibility for your financing – this is up to you and your lender. The following are the services we currently include:
- Introductions to any lender on our Lender’s List, appropriate for your geography
- Initial estimates for your lender on our costs
Required Additional Services
There are typically no required additional services at this stage.
For clients who are interested, we charge an hourly rate for help with:
- Working through your home budgeting and working through your builder estimates with you
- Sourcing separate subcontractor bids for any specialized site work
- Facilitating or assisting in discussions with lenders (this does not include brokering your loan)
These services are outlined in a separate Service Contract, to meet your particular needs.
Outside Vendor Services
As part of this process, you will be required to start speaking with potential Site Contractors and work on local pricing for the site work components of your project. We provide a Site Contract Handbook early on for helping with initial site bids but we do not manage this process for your site work, except in the case that we have outlined a formal Services Contract with you. Please refer to our Budget Builder for an outline of what items are included in our products vs. what items are provided by your site contractor.
Many of our clients manage their Site Contractors, but we are happy to provide this management, including helping put together initial budget numbers, if you are interested.