Construction Loans: Finance the Custom Home of Your Dreams
Construction loans are another version of the mortgage. The difference is that it is specifically designed to fund construction projects. This means that the application process is similar. You’ll still be asked to submit supporting documentation and identification. With the construction loan, there are several options, too. Let’s dig a little deeper into this financial instrument.
Applicants who are approved for the construction loan are given 24 months to plan things out. You settle the land. Then, you have two years to complete the construction project. Before construction begins, you can make interest-only payment, which acts as an infusion of cash. For the savvy, the loan can be split into two accounts. One is personal. The other is investment debt.
When the application process is complete, you find out the amount that was approved. Those funds are not made available at once, however. Instead, the financing is released at predetermined stages. The terms are strict. Building a home requires more than financing. There are permits to secure and crews to hire. So, there are a lot of moving parts.
Construction Loans Conclusion
Mortgage House’s mission is to help every client achieve their financial goals. If you are going to build your dream home or you are a business professional in the real estate sector, we’re here to help you. We help you apply for construction loans. We also go over the details so that you understand how the release of the funds occurs. Our online tools also help clients understand loans including our car loan calculator. All financing follows the same basic structure. So, it’s good to see how interest rates impact it.