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Instant Home Equity (IHE) is not a bank, builder, or broker. With over 50 years of staff
experience and a team of strategic partnerships, IHE is a customer-driven company that
provides a combination of services comprised of construction financing, home plans,
building materials and customer guidance necessary to build your new home -all for
No Money down.
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There are several reasons why the IHE program beats other housing alternatives. A primary
reason many of our customers choose the IHE program is because of the lack of a down payment
requirement. When buying a home, most people must come up with cash for a down payment as high as 10 - 20% of
the total cost plus closing costs. These closing
costs can easily run into the thousands. With the IHE program, our qualified customers can
obtain a no down payment construction loan with the closing costs rolled into the loan.
This means there is no out of pocket cash required outside of the initial application fee
to IHE and the cost of an appraisal.
Another reason our customers prefer the IHE program rather than buying a used home or
hiring a contractor to build a new home is equity. If you decide to buy a new home from a
traditional builder you can expect to pay the current market value of the home. If it is
worth $250,000, you will pay $250,000. With the IHE program our customer's average equity
position is the difference of the cost to build the home and the appraised market value,
typically over 20% of the home value at the time they modify their construction loan into
a permanent mortgage.
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The price of our models can vary from area to area due to regional differences in the type
and use of building materials, even for the same house. Your local sales representative will
have all the prices for your area on each model and will help you determine the best model
for you based on what you can afford and the style of home you wish to build.
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The process is broken into two distinct phases.
The first is the processing and planning phase. You begin by signing up to build your new
home with your local Instant Home Equity New Home Consultant. IHE then works with you and
one of our affiliated lenders to complete your loan application including obtaining bids,
ordering an appraisal, finalizing your materials package and completing title work. This
phase ends when you close on your construction loan and takes an average of 30 - 60 days.
The second is the building phase. Our customers typically build their home in 6 to 9 months.
Our affiliated lenders offer 12-month construction loans to provide a 'safety net' and make
sure there is enough time to build under nearly all conditions. The average time to build
varies due to the various levels of customer participation. Your actual construction time
will be determined by how well you run your project and the amount of work you actually do
yourself. This phase is complete when you finish your new home and convert your construction
financing into a permanent mortgage.
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Interest rates fluctuate and are subject to individual circumstances. Our affiliated lenders'
construction loan interest rates are the same that are available to most builders and are
normally unavailable to consumers. IHE has longstanding relationships with these lenders
that enable us to bring this unique financing to our owner-builder customers.
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No, Instant Home Equity provides 100% complete financing on Land, Labor, Materials, and
Closing Costs, all combined into one loan.
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There are several factors to consider when searching for land. Generally however,
the decision is based upon cost and location.
A. Cost- First, determine a reasonable price range for land based upon your
income. One way to do this is to use two-thirds of your total household annual income as a
guideline. If you make $50,000 look for land in the $30,000 price range. Your Instant Home
Equity representative will help you determine the amount you can afford for land based upon
your individual situation.
B. Location- Location is important because of desirability and the value of
the home. A particular house built in an urban area will not have the same value as the same
house built in a suburb. Ultimately, the most important factor is to choose a location
that best suits your lifestyle.
Now that you have those two factors in mind, how do you find the land that is right for you?
There are many tools at your disposal if you look in the right places.
Classified Ads- Local and state papers are good sources to find
available land. Check in the "Lots for Sale" section.
Drive around- Look in the areas that you are interested in building.
Many land sellers have signs advertising available lots for sale.
Contact a Real Estate Agent- YellowPages.com
can be a good source to find agents in your area. Tell them that you are interested in building a home.
Ask for a lot listing for the area in which you would like to build.
Ask your IHE Sales Rep- Your IHE representative can help find lot listings in your area.
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Credit is just one factor lenders consider when underwriting loans. IHE has several lenders
from which to choose and is therefore usually able to satisfy the needs of strong credit
customers as well as those who may have credit issues
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Average Earned Equity as shown in the home plan pages means the average equity an IHE customer earns by building this home with IHE Complete Owner-Builder Program.
Earned Equity is the difference between the appraised market value of the completed home less the amount of the construction loan. The equity potential depends on several factors including, but not limited to, the amount of individual labor performed, the quality of workmanship, the building site location and local market conditions.
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Instant Home Equity has more than 20 value-engineered home plans from which to choose.
We have designed these plans to be compatible with our program and in consideration of the
varying skill levels of our customers. Certainly not everyone will find a home they desire
among the IHE selection of plans. For that reason, you may modify one of IHE's plans or
provide your own set of buildable blueprints. Typically, modifying IHE plans or using your
own plans will add to processing time. Ask your IHE representative for more information
regarding home plans.
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Acting as the General Contractor means that you are responsible for managing the construction
of your home with the guidance and support of the IHE staff. You will be responsible for
selecting subcontractors, obtaining bids and permits and overseeing the construction of your
new home. In most cases, you will save up to 20% of the cost of the home and occasionally
more depending upon the size and location of your home.
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It's your choice. At a minimum, you will serve as the general contractor with the guidance
and support of the IHE staff (see previous question). Most of our customers do some light
work such as painting or installing insulation, while others who may have building
experience, do a lot of the work. The more work you perform on your new house, the lower
the total cost, which translates into more equity! Ultimately, your level of involvement
depends on your desire to save money and your building aptitude.
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Is there a catch? Yes and no, depending upon how you see it. Frankly, building one's own home
is not for everyone - it can be a difficult and daunting task and it may not be suitable for
you. However, for those with motivation and the desire to fulfill their individual housing
needs, there is no catch. The IHE Complete Owner-Builder Program provides these individuals
with the opportunity to build the home they want and save money and build equity in the
process.
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An IHE Sales Representative will contact you within 2 to 3 days from the time of your request.
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