2. Obtain Financing
To make clean, green living accessible to more people, mkDesigns uses off site factory construction to create well-designed, high-quality green homes. Why? Simply put: it is a better way to build. Not only is it better for the environment, but it offers a much more predictable timeframe and cost for both clients and lenders.
The very first step in order to begin any home building project is to obtain financing. If you are looking to finance your mkD home using a bank or other lender, lenders 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. mkD has a specific draw schedule based on where you are in our process, on a percentage basis as illustrated in the Optional Additional Services section for more information.
In addition, another way for our clients to save is to take advantage of the many energy efficiency and other “green” incentives that our homes may qualify for in your area. Please contact mkD Sales for an overview of the incentives that might be available to you.
Finally, take some time to review our Lender Process Guidelines document to get a sense of the checklist of items you should consider when choosing a lender. Our Lender List has specific banks and lenders you can contact, as well, that have experience with construction loans.
Resources:
mkD Services:
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. What we include as services at this point are:
- 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.
Optional Additional Services: 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
- and/or sourcing separate subcontractor bids for any specialized site work
- facilitating or assist for 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.
