These questions and answers are intended to help you understand more about the Adams Homes “On Your Lot” program. Our on-site sales associates are available to assist you further.
- Question: What is a construction loan?
Answer: Construction loans are short term loans that use the proceeds to pay for construction.Most “On Your Lot” builders require the homebuyer obtain a construction loan and use their money to build the home.As each phase of construction is complete, the buyer pays interest on that portion.
For example: 15% funds released to obtain permit. Buyer pays interest on that amount. At slab stage, another 15% draw is released and now the buyer pays interest on the combined draw amounts. This process continues along with construction, meaning with each month the buyer pays a larger payment until all funds have been released. At that time, buyer’s construction loan turns into a permanent loan and full mortgage payments begin.
- Question: Does Adams Homes require a construction loan?
Answer: No. Adams Homes provides the financing needed to build your new home. This saves homebuyers thousands of dollars.
- Question: What type of financing is required to build on my lot?
Answer: We require just $1,000 deposit at contract and use your lot as a non-refundable deposit. We pay for the construction so you don’t need financing until closing.
- Question: What costs are included in the On Your Lot program?
Answer: Brand new home, homesite evaluation, site preparation costs, permitting costs, impact fees, and utility hook-ups.
- Question: What is the price per square foot?
Answer: This varies by area, floor plan and upgrades selected. Once we know more about where your lot is and which floor plan you’ve chosen, we can provide all costs to build a new home on your lot.
- Question: What is needed to be eligible for the On Your Lot program?
Answer: Buyers need to own a suitable lot free and clear of any mortgages or equitable liens. Lot must be transferred to seller by General Warranty Deed before construction can commence.
- Question: What information should I bring with me to meet with a sales associate?
Answer: For your free homesite evaluation, we’ll need your lot number, address, legal description, copy of deed to lot (if possible), subdivision restrictive covenants (if applicable), tax parcel number.
- Question: We have our lot and found the perfect Adams Homes floor plan, what’s next?
Answer: Congratulations! You’ve made a great choice. The first part of the process is to have the lot deeded to Adams Homes so construction can commence. Next we’ll build your new home and call you with weekly updates. Finally, your lot and home will be deeded back to you in one closing and your family can start making memories in your new home.
Disclaimer: Adams Homes has made a good faith effort to outline the new home purchase process at Adams Homes, but actual timing and process may vary due to reasons within the control of Adams Homes and out of the control of Adams Homes.