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From Land to Home: WD Smith Construction Highlights USDA Loan Benefits



Building Dreams: WD Smith Construction’s Custom Homes and USDA Construction Loans

Raleigh, NCAmid a growing housing market and increasing demand for custom-built homes, WD Smith Construction is stepping up to meet the needs of aspiring homeowners. The company, renowned for its excellence in custom homes and build on your land services, is now spotlighting the benefits of USDA construction loans to help more families realize their dream of homeownership. These loans offer a streamlined financing solution, making the construction of new homes more accessible than ever.

WD Smith Construction: Crafting Custom Homes

WD Smith Construction is a Raleigh custom home builder with a reputation for excellence. Their commitment to quality and customer satisfaction has made them a top choice for families looking to create their dream homes. With a focus on individualized design and meticulous attention to detail, WD Smith Construction offers a seamless building experience from start to finish.

Custom Homes: Whether you have a specific vision in mind or need guidance through the design process, WD Smith Construction collaborates closely with clients to bring their dream homes to life. From architectural design to the final touches, every aspect is tailored to meet the unique needs and preferences of the homeowner.

Build on Your Land: For those who already own land, WD Smith Construction’s “Build on Your Land” service offers a perfect solution for Raleigh area landowners. This service allows clients to utilize their property and design a custom home that fits the landscape and their lifestyle. The flexibility of this option makes it an attractive choice for many prospective homeowners.

USDA Construction Loans: Simplifying the Path to Homeownership

One of the significant challenges in building a new home is securing financing. USDA construction loans, part of the Single-Family Housing Guaranteed Loan Program, provide a streamlined financing solution for eligible families.

How USDA Construction Loans Work: USDA construction loans consolidate the financing process by offering a single-close loan that covers the cost of buying land and construction expenses. This eliminates the need for separate loans and simplifies the financial management of building a new home. The loans can be used for various expenses, including buying a lot, construction costs, inspection fees, and even landscaping.

Borrower Requirements: Criteria for USDA Construction Loan Eligibility

To qualify for a USDA construction loan, borrowers must meet a comprehensive set of criteria designed to ensure financial stability and responsibility. Firstly, a minimum credit score of 640 is required, reflecting a solid credit history. Additionally, borrowers must maintain a debt-to-income ratio (DTI) not exceeding 41%, with monthly housing expenses kept below 29% of their pretax income, ensuring that housing costs remain manageable. Applicants must also demonstrate a clean financial record, with no bankruptcies in the past two years. Compliance with USDA income limits is crucial, as these limits vary based on the borrower’s location and family size, aiming to assist moderate- and low-income families. Furthermore, borrowers need to have a clean credit history and a stable household income for the past 12 to 24 months, showing consistent financial reliability. These stringent requirements help maintain the integrity of the USDA loan program and ensure that it benefits those who are most capable of meeting its obligations.

Ensuring Eligibility: Property Requirements for USDA Construction Loans

The property being built must adhere to specific guidelines to qualify for a USDA construction loan. Firstly, the property must be located in an eligible rural area, ensuring it meets the USDA’s geographical requirements. It must also serve as the borrower’s primary residence, emphasizing the program’s focus on homeownership rather than investment properties. The construction must be undertaken by a USDA-approved contractor, guaranteeing that the builder meets the necessary standards and qualifications. Additionally, the builder must provide a new construction warranty, which offers further assurance of the home’s quality and durability. Any leftover funds after the construction is completed must be applied directly to the principal loan balance, ensuring that the loan amount is effectively managed. Eligible properties include single-family homes, manufactured homes, and certain condominiums, which align with the USDA’s objective of promoting affordable housing. However, properties such as second homes, rental properties, commercial buildings, and mixed-use construction do not qualify for USDA loans, maintaining the program’s focus on primary residences for moderate- and low-income families.

Contractor Requirements: Qualifications for USDA-Approved Builders

Contractors must also meet USDA qualifications to be eligible for these loans. These requirements include approval from the lender, a minimum of two years’ experience in single-family home construction, proper licensing, and a clean credit and background check. Additionally, contractors must have liability insurance coverage of at least $500,000.

Building the Future with WD Smith Construction

The combination of WD Smith Construction’s expertise in custom home building and the financial support provided by USDA construction loans opens new doors for families seeking to build their dream homes. By simplifying the financing process and ensuring high standards in construction, this partnership is set to help more families achieve homeownership in rural and suburban areas.

For more information on how WD Smith Construction can help you build your custom home or to learn more about USDA construction loans, visit their website or contact their office directly.

About WD Smith Construction

WD Smith Construction is a leading general contractor specializing in custom home builds, kitchen and bath remodeling, home additions, and more. Based in Raleigh, NC, they are committed to providing top-quality construction services that exceed client expectations. With a focus on personalized service and exceptional craftsmanship, WD Smith Construction is dedicated to turning your custom home vision into reality.

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