When considering New Construction for your next home, there are a number of factors that you must consider. The information below will answer some of your initial questions. Whether you are financing the project or paying cash, these are important costs to weigh before you dig in. As always, your best bet is to contact a lender that is familiar with new construction financing. At the bottom of the page we have identified two local lenders that are capable of answering your questions. You are free to use any lender.

Financing is the most important part of the process. New Construction financing is quite different than regular residential financing. Although you may be approved to purchase an existing residential property for $250,000 or more with no money down, new construction does not always work that way.

Many times you are able to finance both the land and the construction of the home into one mortgage, this will require at least 5% down. However, you will still need to have extra cash for closing costs and some other fees as identified below.

The costs involved with New Construction often includes the following items:

• Land
• Tap-in and Utility set-up fees
• Excavation
• Zoning and Building Permits
• Construction of Home
• Landscaping
• Paving

Tip: Ask your mortgage lender to pay the Excavator directly. This can save you several hundred to over one thousand dollars in costs. If the builder has to pay the Excavator they will add a carrying cost to you.

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Lynne Tomkowski
Direct: 814-266-8965
Email: ltomkowski@ameriservfinancial.com