Suntrust Construction Loans: What You Need To Know

SunTrust Banks, Inc. merged with BB&T Corporation in 2019 to form Truist Financial Corporation. Truist offers a range of mortgage products, including refinancing and home equity lines of credit. They also offer construction-to-permanent loans, which are short-term loans that allow borrowers to buy land and build a home. These loans consolidate the land purchase and home construction financing into a single loan with one closing.

Truist Financial Corporation now handles SunTrust construction loans

Truist's construction loans are designed to help builders achieve their business goals. The company's processors are well-versed in managing construction loan contracts, understanding builder upgrades, and expertly handling change addendums. With a focus on transparency and specialised knowledge, Truist aims to foster long-term relationships with builders.

For individuals, Truist offers mortgage loans and pre-approval services, helping prospective homeowners find their dream homes. The company provides an enhanced digital experience, supplemented by human support when needed. Truist's loan officers work closely with clients to understand their financial situations and goals, offering tailored solutions.

Additionally, Truist provides personal loans and lines of credit to meet various financial needs. These include debt consolidation, home improvements, weddings, vacations, and more. Applicants can design their loans to fit their budgets and repayment preferences. The company also offers boat and RV loans, as well as auto loans to help individuals drive their dream cars off the lot.

With a comprehensive range of financial products, Truist Financial Corporation is well-equipped to handle SunTrust construction loans, supporting both builders and individuals in achieving their construction and homeownership goals.

Construction-to-permanent loans are available

SunTrust Banks, Inc. merged with BB&T Corporation in 2019 to create Truist Financial Corporation. As a result, SunTrust no longer functions as a standalone entity. However, Truist, building on the legacy of SunTrust Mortgage, offers a range of mortgage products, including construction-to-permanent loans.

Consolidation of Land Purchase and Construction Financing

Truist's construction-to-permanent loans allow you to consolidate the land purchase and home construction financing into a single loan with one closing. This simplifies the process and reduces the complexity of managing multiple loans.

Protection Against Rising Rates

The construction-to-permanent loans offered by Truist provide protection against rising interest rates during the construction phase. This helps maintain the stability of your loan terms and reduces the risk of unexpected increases in your borrowing costs.

Flexibility in Construction Choices

With Truist's construction-to-permanent loans, you have the flexibility to choose how you want to use the loan funds. Rehabs, renovations, and tear-downs are all eligible options, allowing you to customize your construction plans according to your needs and preferences.

Dedicated Construction Loan Team Support

When you take out a construction-to-permanent loan with Truist, you'll have access to a dedicated construction loan team. This specialized support ensures that you have the guidance and assistance you need throughout the loan process, from initial application to final repayment.

Higher Interest Rates and Credit Score Requirements

It is important to note that construction-to-permanent loans typically come with higher interest rates compared to traditional mortgages. These loans are usually unsecured, which means they are not backed by collateral. As a result, lenders view them as riskier, leading to higher interest rates. Additionally, to qualify for a construction loan, you generally need a higher credit score than with a traditional mortgage. A credit score of at least 680 is often required for construction loans.

Land purchase and home construction financing are consolidated into a single loan

SunTrust has now merged with BB&T to form Truist, which offers a range of loans and lines of credit. While I could not find specific information on whether Truist offers construction loans, I can provide a detailed overview of construction loans, including the option to consolidate land purchase and home construction financing into a single loan.

Construction loans are short-term loans that fund the building of a residential home, from the land purchase to the finished structure. One option for borrowers is a standalone construction loan, which finances only the building phase. However, borrowers often get a separate mortgage to pay off this loan when the principal falls due. An alternative is a construction-to-permanent loan, which converts into a mortgage once the construction is complete.

USDA construction loans are a type of construction-to-permanent loan backed by the US Department of Agriculture. They allow borrowers to buy land and build a home with a single loan and a single monthly payment. This option combines the cost of the land, construction, and permanent mortgage into one package, reducing the number of closing costs.

To be eligible for a USDA construction loan, the property must be a single-family home, a manufactured home, or a condo. Vacation homes, rental properties, and commercial buildings are not allowed. In addition, borrowers must meet specific requirements, and qualifying for this type of loan can be challenging due to the complexity of the land loan.

During the construction process, the lender typically has an appraiser or inspector check the house at various stages. As the work is approved, the lender releases additional payments to the contractor. Construction loan interest rates tend to be higher than traditional mortgage rates because there is no existing structure to provide collateral.

SunTrust construction loans offer protection against rising rates

SunTrust Banks, Inc. merged with BB&T Corporation in 2019 to create Truist Financial Corporation. SunTrust no longer functions as a standalone entity, and its financial products are now offered under the Truist brand.

Truist offers construction-to-permanent loans, which allow buyers to purchase land and build a new home with a single loan and one set of closing costs. These loans offer protection against rising rates during construction, flexibility in construction choices, and specialized support from a dedicated construction loan team.

With a Truist construction-to-permanent loan, you can choose to finance rehabs, renovations, and tear-downs. You will also have access to a dedicated construction loan specialist throughout the process.

To apply for a Truist loan, you can start your application online or search for a local loan officer by calling 855-257-4040 or scheduling an appointment. You will need to complete an online profile with personal information and financial details, and you will be able to compare loan options and receive personalized rates.

It is important to note that Truist does not disclose specific loan qualifications or fees online, and requirements may vary based on the mortgage program. However, traditional mortgages typically require a credit score of at least 620 to 640, while government-backed mortgage guidelines are more flexible.

SunTrust construction loans offer flexibility in construction choices including rehabs, renovations and tear-downs

SunTrust Banks, Inc. merged with BB&T Corporation in 2019 to create Truist Financial Corporation. SunTrust Mortgage Inc. no longer functions under the same name or structure, but Truist continues to offer a wide range of mortgage products, including construction-to-permanent loans.

SunTrust construction loans offer flexibility in construction choices, including rehabs, renovations, and tear-downs. This means that you can choose to work with a specialist in any of these areas to build something great together. Whether you're looking to rehab, renovate, or tear down and rebuild, SunTrust's construction loans can help make your vision a reality.

Construction-to-permanent loans from Truist provide a seamless solution for those looking to buy land and build their homes. These loans consolidate the land purchase and home construction financing into a single loan with one closing. This simplifies the process and makes it more convenient and cost-effective for borrowers.

In addition to flexibility in construction choices, SunTrust construction loans offer protection against rising rates during construction. This means that if interest rates rise while you're building your home, you're protected from paying higher interest charges. This feature provides peace of mind and helps you stay within your budget.

With SunTrust construction loans, you also have the option to choose your own contractor or builder. This gives you the freedom to work with someone who understands your vision and can help you achieve your dream home. Whether you're a first-time homebuyer or a seasoned investor, SunTrust construction loans can provide the flexibility and support you need to make your construction project a success.

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