Build Your Dream Home: Overcoming High Interest Rate Hesitations in 2025
With interest rates higher than in recent years, it’s easy to understand why many potential homeowners are pressing pause. But the truth is, waiting for rates to drop might end up costing more in the long run. Rising construction costs, increasing demand, and missed opportunities can all affect your bottom line. So how can you confidently move forward in 2025?
We talked with Lisa Pittman, VP of Mortgage Loans at United Community Bank, to help shed light on how smart financing strategies can keep your dream home within reach.
Smart Financing Solutions for Today’s Market
Even in today’s market, there are financing options designed to support custom home builds and major renovations.
“We have a construction to permanent loan. On a conforming loan amount (up to $806,500), we can finance up to 90% of the appraised value of the lot and the proposed home, if they own their land,” says Pittman. “If they purchase the land and finance the construction loan at the same time, we can do up to 90% of the total cost.”
For those considering renovation projects, United Community Bank also offers a flexible solution: “We have a renovation program on conforming that we can finance up to the $806,500 amount, and 95% of total appraised value,” Pittman explains.
Worried About Interest Rates? Flexibility Is Built In
A common concern for homeowners right now is locking into a rate that might drop in a few months. Pittman offers reassuring news: “With our programs at United Community, we will allow the borrower/client to float down their rate once the house is completely finished.”
This means you don’t have to sit on the sidelines waiting for rates to improve, you can move forward with the peace of mind that refinancing is built into the plan.
Long-Term Gains Outweigh Short-Term Concerns
From a builder’s perspective, one of the most overlooked factors is how quickly construction costs are rising. Waiting to build in hopes of a better rate could mean paying more for materials and labor later. Locking in current pricing can ultimately offer better value.
As Pittman puts it, “Historically, interest rates have valleys and hills—what goes up must come down.” She also advises clients not to spend money buying down rates now. “Save that money for the cost of the refinance to lower your interest rate.”
Ready to Move Forward?
If you’re debating whether to wait or start building, don’t let interest rates hold you back. With the right plan and the right team, building your dream home in 2025 is not only possible—it’s a smart investment for your future.
Contact Alair Homes Charlotte to get started!