Builder Sold Construction Loans in Michigan
Builder Sold Loan in Michigan
Ready to move forward with home construction financing in Michigan? Normandy works directly with borrowers throughout the state — you deal with the loan officer and underwriter directly, not a call center.
Builder-sold new construction is growing in Michigan’s suburban corridors — Livingston County, Kent County near Grand Rapids, and the Ingham County Lansing market all show active builder-to-buyer transaction volume.
Loan amounts from $95,000 to $5,000,000. Up to 75% of contract price on conforming amounts; 70% for larger amounts. Foreign nationals welcome. Land purchase may be rolled into the loan. Full and limited income documentation available. New builders considered. Pre-qualification typically in 3 to 5 business days.
More information on construction to permanent loan in Michigan: https://normandy.com/builder-sold-loans/. Phone: 800-390-7536. All programs: https://normandy.com/.
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 75% of the contract price on conforming loan amounts, otherwise up to 70% of contract price. Cross collateralization considered on other properties, if needed, for maximum or greater loan amounts.
- Land purchase may be included in the construction loan. Please call for a quote.
- Foreign Nationals are eligible for this program
- Deal directly with the Loan Officer/Underwriter
- Full and Limited Income Documentation programs available
- Fast pre-qualification, typically within 3 – 5 business days, closing typically within 30 days (fast track closings 14+/- days available if certain criteria is met)
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Flexible draw schedules
- 1 to 4 family homes, refer to Commercial Construction for more than 4 units
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
- New Builders will be considered
*All rates and terms subject to change without notice
Michigan Construction Market & Regulatory Overview
Michigan’s construction market covers a wide range — urban infill and suburban development in Greater Detroit and Grand Rapids, lakefront custom builds throughout both Peninsulas, and resort community construction in Northern Michigan.
Building Code: Michigan Residential Code (MRC), based on the International Residential Code with Michigan-specific amendments.
Permitting: Permits are issued at the local municipality level. All residential construction must comply with the MRC and applicable local amendments.
Key construction considerations in Michigan include cold winters with frost-line foundation requirements, freeze-thaw cycles, and lake-effect weather patterns along Great Lakes shorelines. Normandy’s underwriting team works directly with borrowers — you deal with the loan officer and underwriter, not a call center.
Contractor Licensing in Michigan
Michigan requires residential builders to hold a Residential Builder license through LARA (Department of Licensing and Regulatory Affairs). Maintenance and alteration contractors are separately licensed.
Owner-Builder Note: Michigan permits homeowners to act as their own general contractor for a personal-use residence, but requires personal participation in the work and prohibits building for resale under the owner-builder exemption.
Loans Available in the Following States
- Alabama (AL)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Iowa (IA)
- Idaho (ID)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Massachusetts (MA)
- Maryland (MD)
- Maine (ME)
- Michigan (MI)
- Missouri (MO)
- Mississippi (MS)
- Montana (MT)
- North Carolina (NC)
- Nebraska (NE)
- New Mexico (NM)
- New Jersey (NJ)
- New York (NY)
- Oregon (OR)
- Ohio (OH)
- Oklahoma (OK)
- Pennsylvania (PA)
- South Carolina (SC)
- Tennessee (TN)
- Utah (UT)
- Rhode Island (RI)
- Virginia (VA)
- Washington (WA)
- West Virginia (WV)
- Wyoming (WY)
Frequently Asked Questions — Builder Sold Loan in Michigan
Q: What is a builder sold construction loan in Michigan?
A: A builder sold construction loan in Michigan is financing for a builder with a signed purchase contract. Normandy funds the build in draws; the loan is repaid when the buyer closes on the completed home. The 12-month term covers construction, with extensions available.
Q: How does a new construction mortgage work for builders in Michigan?
A: A new construction mortgage in Michigan through Normandy provides draw disbursements as work progresses. Interest-only payments on advanced funds during the 12-month term. Up to 75% of the contract price is available for conforming loan amounts.
Q: What home construction financing is available for signed-contract builds in Michigan?
A: Normandy’s home construction financing in Michigan for signed contracts offers loan amounts from $95,000 to $5,000,000. Full and limited documentation programs available. Cross-collateralization on other properties considered for greater amounts.
Q: What builder financing programs does Normandy offer in Michigan?
A: In Michigan, Normandy offers the Builder Sold Loan (for committed contracts), the Builder Spec Loan (for spec builds), and the Hiring a Builder Loan (for owner-occupant construction). See all programs at normandy.com or call 800-390-7536.
Q: What is a construction mortgage loan for builders in Michigan?
A: A construction mortgage loan for builders in Michigan is short-term financing covering residential construction costs. Draws are disbursed at milestones. Interest-only on advanced funds. 12-month term with extensions available. New builders are considered.