Would a construction loan be the type of loan for building a new home?
If we longed for to set up your own house, would we request for the building the whole loan? What have been the conditions of the building the whole loan? How tough is it to get one?
Yes you want a construction loan and one that can be converted to a permanent loan. Why? During the construction process the builder is entitled to a draw (of money) at predetermined stages. Also, with a construction loan you only pay interest on the money that is drawn. When the home is completed you then need a permanent loan.
Yes – a construction loan is simply that, when you are in the construction phase you have a construction loan, then when are finished building you will turn that into a home loan
yes that is what you want. You will need insurance and during the construction phase you pay the interest only on the money. One a C/O is given you must obtain permanent financing or start out with a construction to perm loan from the get go
I am a mortgage banker in TN & KY
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Comments: 3 comments
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realtor.sailor
July 24th, 2009 at 3:50 am
Yes you want a construction loan and one that can be converted to a permanent loan. Why? During the construction process the builder is entitled to a draw (of money) at predetermined stages. Also, with a construction loan you only pay interest on the money that is drawn. When the home is completed you then need a permanent loan.
realtor.sailor
Toby L
July 24th, 2009 at 3:50 am
Yes – a construction loan is simply that, when you are in the construction phase you have a construction loan, then when are finished building you will turn that into a home loan
golferwhoworks
July 24th, 2009 at 3:50 am
yes that is what you want. You will need insurance and during the construction phase you pay the interest only on the money. One a C/O is given you must obtain permanent financing or start out with a construction to perm loan from the get go
I am a mortgage banker in TN & KY
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