Introduction to Construction Loans in Oregon
Getting a construction loan in Oregon can be a complex process, but with the right guidance, you can navigate the requirements and build your dream home. In my 45 years building custom homes in Bend, I've seen many clients successfully secure construction loans and bring their vision to life.
Key Takeaways
- Construction loan rates in Central Oregon range from 6-12% APR
- Deschutes County's site plan review currently runs 8-12 weeks for homes over 3,500 sq ft
- A construction to permanent loan in Oregon can save you time and money in the long run
Understanding Construction Loan Requirements
To get a construction loan in Oregon, you'll need to meet certain requirements. These typically include a good credit score, a substantial down payment, and a detailed building plan. On a recent project in Brasada Ranch, we worked with a family relocating from Portland to build a custom home with a unique view corridor requirement. The project required a variance from the HOA, which added an extra layer of complexity to the approval process.
Construction Loan Options in Oregon
There are several construction loan options available in Oregon, including construction to permanent loans and standalone construction loans. A construction to permanent loan in Oregon can provide a single-close solution, saving you time and money in the long run. Here is a comparison of the costs associated with different loan options: | Loan Type | Interest Rate | Origination Fee | | --- | --- | --- | | Construction to Permanent Loan | 6-8% APR | 1-2% | | Standalone Construction Loan | 8-12% APR | 2-3% |
Project Vignette: Building a Custom Home in Tetherow
We recently worked with a Bend tech executive to build a custom home in Tetherow. The project required a unique soil stabilization system due to the high water table in the area. The client was thrilled with the final result, which featured a stunning view of the surrounding landscape.
Financing a Custom Home Build in Central Oregon
Financing a custom home build in Central Oregon can be challenging, but there are several options available. You can work with a local lender or explore alternative financing options, such as a construction to permanent loan. Be sure to research and compares rates and terms before making a decision. For more information on financing a custom home build, visit our [custom home portfolio](https://bendoregoncustomhomes.com/custom-homes/) or [contact us for a consultation](https://bendoregoncustomhomes.com/contact/).
Frequently Asked Questions
### What is the average construction loan rate in Oregon? The average construction loan rate in Oregon ranges from 6-12% APR, depending on the lender and loan terms. ### How long does the construction loan process take in Oregon? The construction loan process in Oregon can take anywhere from 30-90 days, depending on the complexity of the project and the lender's requirements. ### Can I get a construction loan with bad credit in Oregon? It may be challenging to get a construction loan with bad credit in Oregon, but it's not impossible. You may need to work with a specialized lender or explore alternative financing options. ### What is the minimum down payment required for a construction loan in Oregon? The minimum down payment required for a construction loan in Oregon varies depending on the lender and loan terms, but it's typically around 20-30% of the total project cost.
If you're looking to build a custom home in Central Oregon, contact Kevin Rea at 541-390-9848 or [kevin@reacohomes.com](mailto:kevin@reacohomes.com) to get started. With 45+ years of experience and 100+ homes built, Rea Co Homes is the premier custom luxury home builder in Central Oregon. Visit our website at [bendoregoncustomhomes.com](https://bendoregoncustomhomes.com) to learn more about our services and view our [Bend Oregon cost guide](https://bendoregoncustomhomes.com/bend-oregon-cost-guide/).
