A person’s home is one of the most important places to them, a space they find comfort, rest and relaxation. Naturally, we are under a lot of pressure to make it perfect for the clients we work with. Our recent project in the Woodland Creek neighborhood of West Des Moines, Iowa has been a fun challenge for our team. We are working with a universal design!
The clients for this project are a retired couple who wanted to move from their small town to the growing city of Des Moines to be closer to their kids and grandkids.
They wanted a home that they could grow old in and still be able to access and use the entire house as they age. It became apparent to them that having J. Thompson Builders create a custom universally designed home to fit their needs was their best option.
Universal design is becoming a significant choice in newly built homes. Not only does it allow for adjustments to help the aging community live comfortably in their homes, it also can be a good fit for people with disabilities. With universal design, your home is customized to fit your lifestyle.
The home we designed for our clients is a traditional ranch style home large enough to host family gatherings. The main level measures to 2,200 square feet, with the addition of the finished basement the total square footage comes to approximately 4,000.
When considering their long-term needs, we decided to design wheelchair accessible cabinets and an island in the kitchen. There will also be a zero threshold entry into the home, meaning there are no steps from the street to the front door. Due to the prevalence of basements in the mid-west a majority of homes these days are built with at least one to four steps leading up to the main level, making entry challenging for a sector of our population.
A unique feature in this home will be a residential elevator to carry you from the main floor into the finished basement. Once in the basement we have made sure there is plenty of living space and necessary facilities for the homeowners to have everything they need on either level.
You decide that you are ready to build a custom home for you and your family. Now it is time to figure out how to finance your dreams!
Let’s start with the basics. As with any loan process, do your research. Talk to several mortgage companies that specialize or have a strong understanding/history of working with construction loans. Ask questions and voice your concerns. Companies of course want your business, but they also want to make sure they are a good fit for you and what you are wanting to accomplish. Reviews and referrals are strongly regarded these days. They want to make sure you have the best experience possible.
There are several main differences between a construction loan and a regular existing home loan. An individual construction loan may require a longer credit history or a higher credit score as well as more money down and along the way. It is more of a process, but it is most certainly worth it. With the right builder, the more involved process becomes a piece of cake; but, that is an article for another time.
Home loans can have a 30 year term whereas a construction loan typically has a max of 1 year. “The rates on this type of loan are higher than rates on permanent mortgage loans. To gain approval, the lender will need to see a construction timetable, detailed plans and a realistic budget, sometimes called the “story” behind the loan,” as reported by bankrate . While your home is being built, it is typical to make interest-only payments.
If you are thinking, “I don’t have enough money to pay off a newly built home in 1 year!” Don’t panic.
A popular option is the construction-to- permanent financing sometimes called “one-time close,” a “single close,” or an "all-in-one" loan. Upon completion of construction, the remaining loan balance is converted into a permanent mortgage with terms up to 30 years. Like most loans, “the rate and other terms of the permanent mortgage are set up-front when the entire loan package is closed” according to the National Association of Home Builders . Construction/permanent loans are offered by many different lenders, including banks and mortgage companies and are a great option for those of us wanting to finance their home purchase over an extended period of time.
Another option is a stand-alone construction loan. This type of loan can be beneficial if you currently own your home and want a smaller down payment option. Read more about stand alone construction loans.
There are many different loan options. What makes sense for one person doesn’t make sense for everyone. Make sure you find the right product for you and your particular project. If you want to talk over some options, contact us! We would love to hear your ideas and figure out how we can build your dream home.View our work , read our reviews on Houzz.com , and visit our Facebook page to get inspired!