Do Banks Give Construction Loans?
Banks provide several loan products. However, they approve less of them, especially for applicants who don’t bank with them. Non-bank lender Mortgage House works with an array of applicants. Plus, we offer competitive loan terms.
Bank construction loans provide several benefits. So do the ones offered by Mortgage House. For example, our loan specialists set up the funds for drawdowns. You receive approval for an amount, but you only take out the amount you need in increments. Thus you only pay interest on the drawdown amount.
During construction, we allow clients to make interest-only payments on the land portion. This makes finances more manageable during a hectic time. We give our clients 12 months to complete construction. This comes in handy if you experience delays.
If the project is an investment, we help clients set up two accounts. One account holds the investment debt. The other holds the personal debt. This makes reporting tax liability easier.
It’s important to take into account the maximum that the applicant can borrow. If you will retain owner-builder status, most lenders provide a 50% loan-to-value ratio. That’s why it’s necessary to understand financing before starting the project.
Mortgage House offers an array of financial products including a car loan option. Thus we can offer a package that covers several aspects of a construction project.
Bank Construction Loans Conclusion
It’s possible to obtain bank construction loans. However non-bank lender, Mortgage House, provides more competitive loan terms. For this project, speak with our loan specialists. They walk you through the details. Contact our team today.