When the financial crisis exploded in 2008, new construction financing ended. Actually, most credit was taken off the table then and for good reason. On new homes being built, many banks pulled existing mortgage loans creating havoc for builders. This also hurt individuals who were in the middle of new construction projects.
Since then, getting a bank to loan on new construction in Bergen County has been difficult if not impossible. But there has been one bank that’s kept its new construction loan department open – TD Bank. In addition to TD Bank, Wells Fargo and Provident Bank of New Jersey also do new home financing.
I called TD Bank this week to review financing for a new 3 lot subdivision in Ho-Ho-Kus that I’m working on with Beverly Mitchell in my office; the interest rate quoted was very attractive – only just over prevailing mortgage rates with no points.
Each Ho-Ho-Kus lot is around 1 acre and we have packages for buyers at $1.5-1.7 million with architect plans for gorgeous 5,800 sq ft houses and a master builder in place.
If you drive up the Tenafly East Hill, you’ll be amazed at all the new houses being built there. Tenafly has always enjoyed a strong demand for luxury new construction on it’s East Hill acre lots. Buying a new Tenafly home is no problem for qualified buyers today.
Whether you’re building a new home in Tenafly, Ho-Ho-Kus or anywhere in Bergen County, you can get a mortgage as long as you’re qualified. New construction financing exists and that’s great.
