Can You Get a Construction Loan with a Mortgage?
Owner-builders and investors can obtain a construction loan to build a new home or multi-unit structure on land that they own. In addition, some owner-builders can roll the construction financing into a mortgage.
Loans for construction projects have a short loan period. It takes between six to 12 months to build a home. During those months, lenders release payments on a schedule. When the project reaches milestones, the lender releases the funds in increments. Once the owner-builder completes the project, the funding from the construction loan ends. Plus, the repayments become due. To extend the repayment options, some owner-builders qualify to turn the construction loan into a mortgage.
Mortgage House is a non-bank lender that continues bringing innovation to the lending market. When you work with our loan specialists, they have the tools to explore rolling a construction loan into a mortgage. Our team understands that this helps owner-builders obtain more time to repay their debt.
Owner-builders interested in this action will go through the application process. However, it is often shorter than the mortgage application process that homebuyers experience. It helps that you have already obtained financing. Our team needs a few pieces of information to determine the new loan terms including monthly repayment, start and end dates.
Moreover, once you become a Mortgage House client, you receive access to our other loan products such as our car loan.
Construction Loan and Mortgage Conclusion
Some owner-builders will have the opportunity to combine their construction loan with a mortgage. To explore your options, contact our Mortgage House loan specialists.