Home buying · New construction
Lee County is filling in its old plats one lot at a time, and a lot of buyers here end up in a house that did not exist a year ago. The financing depends on which of three situations you are in.
Chris Ailes, mortgage broker, Fort Myers · NMLS #2485778 · About 3 minutes to read
Cape Coral and Lehigh Acres were both platted decades ago into enormous grids of quarter-acre lots, and that is why so much of what sells there is brand new. The builder buys a lot, puts up a home and sells it, or you buy the lot and hire the builder yourself. Each path finances differently, and mixing them up costs money.
A completed home owned by the builder is a standard purchase. The builder is the seller, you are the buyer, and the loan is FHA, VA or conventional like any resale. The house is new, so the appraisal, the insurance and the inspection are usually clean: new roof, impact protection, current code, a wind mitigation report the builder can document.
Two things to watch. First, the incentive. Many builders offer closing-cost help or a price adjustment if you use their preferred lender. Sometimes it is a real advantage; sometimes it is paid for in the loan terms. I run the builder’s offer against the wholesale market and show you both on paper, so the decision is made with numbers rather than pressure. Second, the tax bill. The first year’s taxes on a new build may reflect only the vacant lot, so the second year jumps. I estimate the full figure and set the escrow to match.
When you contract on a home that is framed but not finished, you are still buying a completed house at closing; the builder carries the construction. What changes is timing. The loan closes when the certificate of occupancy is issued, which may be months out, so the question becomes when to lock. Extended locks exist on agency loans and their terms change, so this is a conversation about current availability, not last year’s answer.
Keep your financial life steady during the build: same job, no new credit, no large unexplained deposits. The pre-approval that got you the contract has to be refreshed before closing, and it needs to still work.
This is the construction loan proper. You own the lot, or you are buying it, and you have hired a builder. A construction-to-permanent loan, often called a one-time close, funds the build in draws as each stage passes inspection, charges interest only on what has been drawn, and converts to your regular mortgage when the house is finished. One closing, one set of costs.
The lender approves three things together: you, the builder and the plans. Expect a builder contract, a detailed budget, plans and specifications, and a builder review that looks at license, insurance, experience and financial standing. Land you already own can count toward the down payment. The appraisal is based on the finished home as described in the plans.
Well and septic are routine in both the Cape and Lehigh. Parts of Cape Coral are also inside the city utility expansion, and that assessment belongs in the payment estimate from the start.
Much of north Cape Coral and most of Lehigh Acres run on private wells and septic systems. FHA, VA and conventional loans all allow them; a lender may ask for a water test and the septic has to be working at the appraisal. On a new build the builder handles both. In the Cape, the utility expansion assessment for city water and sewer is billed with property taxes and counted in your payment, and I confirm whether the seller has paid it before we finalize numbers.
Usually the easy part: new roof, impact windows or shutters, current code, and a wind mitigation report that documents all of it. Flood insurance depends on the lot, not the age of the house, so a brand-new home on a canal or in an A zone still needs it. I check the map for every address before you write the offer.
Builders steer buyers to preferred lenders because it makes their closings predictable. That is a legitimate reason. It is not a reason to skip the comparison. Bring me the builder’s offer and I will put the wholesale market next to it. If the builder’s incentive wins, I will say so, and you can use it with a clear conscience. If it does not, you will know what it was really costing you.
If you have completed inventory that has been sitting, the problem is usually not the house, it is the financing story around it. A property-level financing analysis, showing a buyer exactly what the payment looks like with the real taxes, insurance and any assessment in it, moves homes that price cuts do not. See the builder page for how I do that.
Yes, on a completed spec home the loan works like any resale. The builder provides the documents the program needs, and the appraisal confirms the home meets the property requirements.
Often the incentive is tied to the preferred lender. Whether it is worth it depends on what the loan terms look like next to the wholesale market, which I show you side by side.
Typically interest only, and only on the amount drawn so far. The full principal and interest payment starts when the loan converts after completion.
It depends on the lot’s flood zone, not the age of the house. In an A or V zone the lender requires it. I check the map for every property.
Chris Ailes, NMLS #2485778. Florida and Texas loans originated through Anchor Mortgage Funding Inc., NMLS #236419; Ohio through Loan Factory. This article is general information, not a commitment to lend and not advice about your specific situation. All loans subject to credit approval and underwriting on a complete file. Guidelines change. Equal Housing Opportunity.
