Financing, explained without the jargon

Buying a finished TruForge home

If you are purchasing one of our completed or nearly completed homes, financing works exactly like any other home purchase. A conventional, FHA, VA, or USDA loan all apply depending on the property and your qualifications. You get pre-approved, we sign a purchase agreement, and you close.

Building on one of our homesites

Building to order usually uses a construction-to-permanent loan. One closing, two phases:

• Construction phase. The lender releases funds in draws as we complete stages of the home. You typically pay interest only on what has been drawn, so early payments are small and grow as the house does.
• Permanent phase. At completion, the loan converts to a standard mortgage with regular principal and interest payments. No second closing, no second set of closing costs.

Down payment requirements on construction loans are generally higher than on a finished home purchase, and lenders will want to see the plan, the specification, and the signed build contract before they issue a commitment. We provide all of those.

Lot loans

Some buyers reserve a homesite well before they are ready to build. A lot loan or land loan covers the homesite purchase, and many lenders will roll the lot payoff into the construction loan later. Terms vary widely, so compare more than one lender.

What to ask any lender

• Do you offer a single-close construction-to-permanent product?
• How many draws are allowed, and what is the inspection and fee schedule per draw?
• Is the rate locked through the construction period, and for how long?
• What down payment is required, and is lot equity counted toward it?
• What happens to the rate and payment if the build runs past the lock?

Choosing your own lender

TruForge Homes does not require you to use a particular lender, and we do not receive payment for referrals. You are free to shop rates and terms anywhere. If it is helpful, we will share a short list of local lenders who have handled construction loans in Cabarrus and Rowan County and let you take it from there.

Nothing on this page is financial, tax, or legal advice, and it is not a commitment to lend. Rates, programs, and qualification requirements change. Confirm the current details with a licensed lender before you make decisions.