Frequently Asked Questions
Below is a list of frequently asked questions about our home ownership program. Click on a question below to see the answer. If your question is not answered below, please email us at sales@amhp.net or call us toll free at 1-800-343-2884 for further assistance.
- What's the catch?
- Can this work for me?
- How can I do this – I've never built a house before?
- How much of the construction labor will I have to do myself?
- Are there other ways to increase the equity I earn in my home?
- What financing terms are available?
- How do I know I can get a mortgage?
- What types of homes do you offer?
- Why shouldn't I just save for the downpayment?
- Can I use my own home plans?
- What if my credit is not the greatest?
- What if problems arise during construction?
- What is your interest rate?
- How long do I have to build my home?
There is no catch. To obtain a new home through our program, you will contribute a significant amount of time and energy in managing and participating directly in your construction project. But the rewards will be worth it.
Yes, assuming you qualify for our financing program and you’re willing to commit the time and energy necessary. Generally, you’ll need an annual household income of $40,000 or more with a sufficient credit history that will enable you to qualify for a mortgage.
How can I do this – I've never built a house before?
Most of our customers never built a house before either and they succeeded. With our assistance, you take on the role of Project Manager and perform tasks such as arranging for permits and inspections, soliciting bids, selecting and scheduling subcontractors and generally overseeing the building of your home. We provide the home plans, arrange for the timely delivery of appropriate materials, issue checks to pay your subcontractors and provide monthly statements that detail your budget and your loan balance. We work together to make sure you stay organized and complete your home on time and within your budget. Managing the construction of your home is not that complicated if you know what you’re supposed to do and when to do it. Remember that we are financing your entire project and have a vested interest in your success. We’ll ensure that you have what you need and that you’ll succeed. [Click here to read one family's story.]
How much of the construction labor will I have to do myself?
The answer really depends on your skills, how much time you can devote to your project, your budget and the amount of equity you want (or need) to earn. If your affordability and budget allows, you don’t have to do anything more than serve as Project Manager. However, any labor you do reduces the cost of construction and increases your equity. Most customers paint, insulate and keep the job site clean themselves. Customers with the time and skills save even more money by roofing, installing plumbing or electrical fixtures or even by working as laborers with their framing or drywall subcontractors.
Are there other ways to increase the equity I earn in my home?
Yes, by finding ways to lower your costs you can increase your equity. You should manage your budget very carefully and continue to look for qualified subcontractors offering lower bids throughout your project. Also, by staying organized and carefully scheduling your subcontractors, you can complete your home faster allowing you to save interest costs.
What financing terms are available?
Our lending subsidiary, Home Partners Credit Corp., finances up to 95% of the purchase of your land and provides 100% of the financing necessary for the purchase of our home package, materials, labor and related costs. The term of the construction loan we offer is 12 months with a 10.9% interest rate and a 13.58% APR.* Most importantly, no payments are required during the construction period.** Of course, it is to your advantage to complete your home as quickly as possible in order to reduce the total amount of interest you will pay.
* APR Assumes a term of 12 months on a $160,000 loan with a total of $1,885 in pre-paid finance charges and closing costs. Actual APR will vary based on actual loan amount and other applicable fees charged.
** Interest will accrue during the construction period and will be due and payable when you obtain permanent financing to repay your construction loan.
How do I know I can get a mortgage?
We initially qualify you based on industry standard guidelines anticipating what your financial profile will be when you complete your home. We also verify your construction budget and obtain a "plans and specifications" appraisal from an independent company to determine if your completed home will have sufficient equity value before we approve your loan. Assuming that you complete your home within budget and you maintain your credit standing and income during the construction period, you will be able to secure a mortgage. Again, we are financing your entire project and have a vested interest in making sure you can qualify for a mortgage so that you can repay your construction loan.
What types of homes do you offer?
We offer ranch, split and colonial style homes. In fact, there are over two dozen different home plans in various sizes and configurations that meet the needs and tastes of most families. More importantly, they have been professionally designed in conjunction with our strict material specifications to maximize the appraised value of the home without adding unnecessary costs. (Click here to view the homes we offer)
Why shouldn't I just save for the downpayment?
Most couples today are finding it more and more difficult to pay the high cost of rent and provide a decent lifestyle for their family. They are struggling to save any money, let alone enough to achieve the 20% down payment banks typically require to get a mortgage. And with the cost of new homes continuing to rise faster than the rate at which they can save, they will never reach their goal of saving enough for a down payment.
No, you must choose one of our nineteen different home models. Our homes are specifically designed to maximize the appraised values and to minimize the cost of construction. Our plans are available in different elevations and the floor plans can be reversed to meet-the-needs of your building lot. (Click here to view the homes we offer)
What if my credit is not the greatest?
Our pre-qualification is good for two years. If you are not able to move forward the first time we encourage you to work to improve your credit and try again as many times as you wish at no extra cost. We have several families that were unable to pass the initial pre-qualification review that are now building homes with us.
What if problems arise during construction?
The American Home Partners Construction management team works closely with you during the construction and can help, assist or work through issues until the house is completed on-time and on-budget.
The interest rate on the construction loan is 10.9%. Your permanent loan interest rate will be determined by: your credit at the time you finish your house, the equity in your project and the current market rates and program you choose. Please be assured that our Permanent Mortgage Department will assist you to achieve the best possible rate and terms available for you. You may also shop locally for a mortgage if you choose.
How long do I have to build my home?
Your construction loan term is 12 months. The length of time depends on you. It is determined by how well you are organized, how quickly your subcontractors work and how much time you are willing to work. The faster you complete your project the less interest you pay.
