Warranty & Financing

Home Warranty

We provide a comprehensive warranty package with every home we build. This warranty includes:

  • A One-Year workmanship and materials warranty
  • A Two-Year mechanical and delivery system warranty for plumbing, electrical and HVAC systems
  • A Ten-Year warranty on structural components
  • A Ten-Year warranty of habitability

We back this warranty up with a StrucSure Home Warranty that is transferred to the homeowner upon completion of the home. The benefits of StrucSure’s home warranties are two-fold:

  • Protecting builders from expensive claims
  • Providing reassurance to buyers about the structural integrity of their home

StrucSure provides insurance-backed, 10-year warranties on new homes that cover structural defects from day one of ownership. Please visit the StrucSure web site for additional information.

Financing

There are three loan options usually associated with building a custom home:

  • Lot Loan – Lot loans are used to secure a lot for the construction of a new home. If you are building within the city of Houston, there will often be an existing home on the lot that will have to be demolished or moved. Sellers will typically want the lot to be closed on within 30 to 45 days. It is infrequent that a seller will allow more time. If you agree to use the lender for the construction and mortgage loan, you will get preferential terms on the lot loan. The construction loan and lot loan will be consolidated into a single loan.
  • Construction Loan – The construction loan is the money that is actually used during construction of the home and is based on short term interest rates. Think of the construction loan as a line of credit, where your builder is given the money as the home is being constructed, based on levels of completion. Generally, some contingency is built into the loan to handle fluctuations in material costs or change orders requested by the client. At the completion of the home, the amount of money actually used, plus interest charges and any other fees are consolidated and rolled into the mortgage.
  • Mortgage – The mortgage is based on long term interest rates and may or may not be at an interest rate similar to the lot loan or construction loan. Lenders may offer to do a two time or one time close. A one time close will be where you close on the construction loan and mortgage at the same time. This allows you to “lock” the mortgage interest rate at the start of construction rather than at completion. In very rare instances, clients are able to obtain favorable terms on the purchase of the lot, that then allow us to complete the entire design phase prior to closing on the construction loan. The lot is then paid off with the construction loan, thus saving some closing costs.

FWD Builders has worked with many banks, lenders and brokers throughout the North Texas region, and has the experience you need to help secure the most attractive loan possible for your particular project.