Establishing a Budget: Land Development  

Before building on your land, it’s important to understand the factors that can impact the overall cost of developing your land. One major cost consideration is how far your home will sit from the road, as this affects the length of your driveway and utility trenching/line extensions that are needed. As well as if your land will use an onsite septic system, depending on the type and complexity of the system, it can vary significantly in cost. For lots with access to public water and sewer, establishing service can come with its own set of requirements and fees. Other expenses to consider include the amount of land that will need to be cleared or disturbed, if stormwater management measures are required, and if the lot naturally “balance” in terms of soil movement and grading. Because each lot is different, we encourage you to contact us with any questions. We’ll meet you on site to learn more about your vision, and following a thorough evaluation, we’ll provide a detailed, line-by-line breakdown of the estimated land development costs specific to your property. 

Construction Loan 

At Berks Homes, we use a Construction Loan for all On Your Land builds. This all-in-one loan can cover the land purchase, development, and home construction, including structural and Selection Gallery options. A 5% deposit is required at contract signing, based on the total construction price. 

To make the process seamless, we work with a panel of trusted financial partners who are not only familiar with construction loans but also understand the Berks Homes build process. This ensures smoother approvals and efficient coordination from start to finish. Your construction loan will typically close a few weeks before building begins, and during the construction phase, your bank will release funds in a series of five draws. After each major milestone, the bank sends an inspector to confirm completion before releasing the next draw. During this time, you’ll make interest-only payments on the disbursed amounts. 

At the end of construction, we hand over the keys in a special key handoff, and your construction loan is then rolled into a more traditional long-term mortgage, typically a 30-year fixed or adjustable-rate loan. 

Preferred Lenders 

We have a panel of lending partners that are familiar with the Berks Homes process and the Construction Loan process which makes for a seamless transaction for you. Our financial partners will be happy to answer any questions you may have about the construction loan process.

Build on your land with Berks Homes 

Ready to learn more about building on your land? Our On Your Land team is here to answer any questions. For more details, you can contact us at 484.772.2693 or onyourland@berkshomes.com.