Can I Get a Construction Loan from a Mortgage Provider?
Sometimes building a new residential property provides worthwhile opportunities. Since the property does not exist, owner-builders and investors who need to finance the project can obtain a construction loan from lenders. Mortgage House is among the lenders that issue construction loans. In addition, our projects benefit owner-builders who need to roll the product into a mortgage when the project is complete.
Construction loans fall into the home loan category. Banks and credit unions finance these projects too. However, they remain conservative in their lending practices. Both institutions service savings accounts and deposits. Therefore, they must maintain a daily level of liquidity. Construction projects pose risk for lenders. Thus, you’ll find that the home loan interest rates rise a little higher than those of mortgages.
Nonetheless, lending specialists at Mortgage House have access to proprietary tools that allow them to evaluate all applications efficiently. They take a look at the plans, timeline, and cost estimates too. Moreover, owner-builders and investors need to understand that this home loan is a short-term solution. Once the project is complete, the borrower must repay the funds. The good news is that sometimes it’s not necessary to borrow the entire amount after all. Therefore, the applicants save some money on interest rate charges. Solutions for owner-builders exist to help keep the financing costs manageable. Plus, investors have specific product tools at their disposal too.
Construction Loan Conclusion
Owner-builders and investors interested in obtaining a construction loan can contact our Mortgage House lending specialists. They remain ready to offer more guidance.