Home Construction Loans Allow You To Build Your Dream Home

About Home Construction Loans

If you’ve been looking for a house and can’t find the perfect home yet, you may decide to have one built for you.

This is where a Home Construction Loan can help you get the house you want.

These type of loans are short-term financing that the homeowner can use to cover the cost of building a home.

Construction loans are considered specialty financing. That is because it covers only the cost of custom home building. 

Many types of construction loans are available that are right for you, whether you are starting from scratch with a land loan or completely renovating a home.

• Construction-Only Loan.
• Renovation Construction Loans.
• Construction-to-permanent loan.
• Owner-Builder Loan.
• End Loan – a traditional mortgage.

Construction Home Loans can make your dream a reality.

Finding the Perfect House

Finding the home of your dreams can be a challenging endeavor. Sometimes, people don’t know where to even begin with so many styles to choose from.

When you decide on your favorite style, many other factors come into play, like location and the size of the home.

Unfortunately, finding your ideal home and location within your budget seems impossible with the limited number of properties on the market.

Rarely do buyers find their ideal home that meets all of their needs.

Don’t give up just because you haven’t found your perfect home yet. Now you can build a new house exactly how you want it with the right loan for your needs and goals.

House Inventory Is At Record Lows

Mortgage rates keep homes affordable, that is, if you can find one to buy. So, many home buyers today are deciding to build when they can’t find a good selection of homes in their area.

Here’s how Home Construction Loans work:

1. Construction loans are short-term loans that provide funding for the building of your home.
2. Construction loans are paid out in stages. 
3. You usually only have to pay interest for each stage.
4. You need to have detailed plans for your home.
5. The lender will check on the progress of your home periodically.
6. Upon completing your home, the construction loan is paid off and then a traditional long-term mortgage takes over.

This gives you a rough idea of how a construction loan works.