New Home Financing

For new structures, the finance process is quite a bit different than getting a traditional mortgage. Traditional loans are typically put in place soon after the construction loan has been drawn down and closed out. Traditional loans provide the homeowner with many different options such as VA loans, 15, 20 and 30 year traditional mortgages, and FHA financing.

Because construction loans are quite different than a traditional mortgage, Barker and Son Homes provides a seamless process for their customers to first, “purchase” a new piece of ground, and then obtain a “construction loan” to build their custom home. Here are the high points..

Land Purchase

Typically the first step when building a custom home is to purchase the piece of land you intend to build on. Barker and Son Custom Homes will introduce you to a realtor who specializes in finding custom home sites for our customers. Financing for this endeavor is described below.


Construction Loan

Once the land you’re going to build on has been identified, it is time to take out a construction loan for the entire process, unless you already have the funds. Barker and Son Custom Homes will set you up with our company’s bank representative who will provide you with the financial plan to purchase the property, finance the dollars needed to build your custom home, and when the project is complete roll the land costs and the construction costs into a long term traditional mortgage.

Construction Disbursement

Once the bank has approved your loan, they will want you to pick out a disbursing company that Barker and Son will make regular draws on while the new home is being constructed. We work with a number of the more reputable disbursing companies here in the St. Louis area and will be happy to point you I the right direction.