Silhouette’s Financing Partner:

Silhouette Homes is constantly seeking innovative and low cost financing plans for the construction and long term financing needs of our clients. Though there are many quality home mortgage loan brokerage firms in the marketplace, none of them have the resources, value, and range of capabilities of a strong community bank.

M&I Bank: Silhouette Homes is proud to partner with one of the oldest and largest banking companies in the Midwest, M&I Bank (Marshall and Isley Corporation). M& I Corporation is a diversified financial services company headquartered in Milwaukee with $58.3 billion in assets. Founded in 1847, M&I now has 327 offices around the country with a concentration in Milwaukee and the Twin Cities. M & I also has one of the newest banking offices in the north Metro with their new branch office in Blaine providing personal and local service.

M&I Bank has very competitive offerings for each of the key lending products our new home buying clients are likely to consider:

• Home Equity Credit Lines - low cost access to the equity in your current home.
• 100% Lot financing - get the lot you want at affordable rates. Your interest will be tax deductible.
• Construction to Permanent Loans - permits you to combine 100% lot financing with financing for the initial 10% builders deposit. M&I offers competitive interest rates with short term fully tax deductible construction interest rates matching long term rates (significantly below prime interest rates). Upon completion of your new home, the short term loan is “modified” into your permanent financing without a new closing. A one time close saves time and minimizes closing costs. 
• Interest rate lock features - rate locks allow you to lock in on your long term interest rates at the time you begin construction on your new home. In times of interest rate uncertainty, get the peace of mind of knowing that you have an acceptable interest rate when your new home is started. Plus, if rates improve, you’ll have a float down option prior to completion of your new home.
• Experience – M&I has recruited superior experienced mortgage officers. Experience is critical to reliable service and financing your can count on.  Mortgage financing for the upscale homebuilding client is usually just one element of their overall personal financial plan. Prepare your plan with the advice of a professional..

Silhouettes Homes Financial Requirements to Start Your New Home:

• 10% Initial cash deposit – construction of a new custom home is a very cash consuming process and Silhouette has the assets and credit lines available to meet the needs of every home owner. The only funds expected from the client is a deposit equal to 10% of the investment Silhouette will make in the completed new home. This deposit is at the time or survey or closing on the lot. Check with our financing partner, M& I Bank to finance some or all of this deposit utilizing M&I’s home equity credit line or the construction loan mortgage products.

• Financing Pre-approval - before starting your new home, Silhouette Homes requires that your lender provide us with an acceptable financing pre-approval letter from a reputable lender. 

• You can be Contingent - If your permanent financing is contingent on the sale of your present home, see our guaranteed home sale offer. Silhouette Home's long association with Edina Realty puts us in an ideal position to give you an honestly priced guarantee of the sale of your existing home, so you can close on you old home, get your prior mortgages paid off ( not just your equity) and begin enjoying your new home. If we fail to sell your present home, we will buy it at a fair price.

Lot Acquisition Strategies:

Client lot ownership is the lowest cost lot purchase strategy for the new home owner

A break from industry tradition –    The construction industry has an age old practice of builders keeping tight control over ownership of the lot.  This was not driven by the desire to keep costs low, but rather to permit builders to keep control and have an upper hand over their clients if disputes arise. The party in title on the lot has the greatest security position.  However, Silhouettes emphasis on customer satisfaction has made cost saving for the client our priority.  So, we strongly encourage our clients to pursue a strategy where they will purchase and be “in-title” on the lot prior to the start of construction.

   Client lot ownership saves cost-

•    Lower interest rates -Client’s can borrow money for lot financing cheaper that any builder.  While a builder interest rates often start at the prime rate of interest plus, client interest rates with Silhouette’ mortgage partner are at preferential rates well below the prime interest rate.
•    Tax deductible - Clients can tax income tax deductions for any interest paid on a lot during the course of construction.
•     Avoids a redundant state deed tax – a state deed tax of .33% of the value of the property is charged each time title passes from a seller.  When a client purchases the lot before the house is built, the deed tax is calculated on the bare lot value and is paid by the developer at the time of initial transfer of the lot.  This tax will be paid twice and at the full value of the property with the completed house if the builder keeps title to the lot during construction.
•     Silhouette client incentive –  Silhouette will reward the client who can directly finance the acquisition of the lot with a $1,500 credit off the cost of construction of the new house.

      Silhouette tailors lot acquisition to the clients needs -  Whatever lot acquisition and financing strategy best serves the clients needs, Silhouette can  make it work.

            North Dakota Builder license # 36903   Minnesota Builder license # 1579     Silhouette Homes, LLC.© 2007-2010   All Rights Reserved.    Information Deemed Reliable But Not Guaranteed.