On this episode of Back to Your Roots, host Chris Griffin sits down with Daniel Elrod, a mortgage loan originator recently voted "Best of the Best" in Cleveland, Tennessee, to unpack the ins and outs of construction financing.
Ever wonder why construction loans seem so complicated? Daniel breaks down the crucial differences between traditional home purchases and building from scratch. Before you meet with contractors or fall in love with house plans, listen to his advice about establishing what you can actually afford—potentially saving you from heartbreak and wasted time. The conversation dives deep into two distinct construction loan options that serve different needs: the unique 30-year fully dispersed construction loan with one-time closing and fixed rates, and the traditional 12-month interest-only construction loan.
What truly sets this discussion apart is the revelation about River Valley's note modification program—a feature that could save borrowers thousands in refinancing costs when interest rates drop. "You can always date the rate but marry the property," Daniel advises, highlighting how this program lets you secure your dream home now without missing future rate opportunities.
The episode also tackles specialized construction types like barndominiums and pole barn homes, explaining how these increasingly popular rural building options can be financed at up to 85% loan-to-value. Daniel dispels common myths about who qualifies for agricultural lending (hint: you don't need to be a farmer), reveals how land equity can eliminate down payment requirements, and explains the flexibility around dwelling limits for properties over 15 acres.
Whether you're just starting to dream about building or ready to break ground, this conversation delivers practical insights you won't hear elsewhere. Subscribe to Back to Your Roots for more insider knowledge on agricultural and rural financing that guides you back to what matters most.
