Welcome to Construction Loans Guide
Get New Construction Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Important Information on Home Construction Loans
from:Did you know that you could get a loan to cover the cost of building your own home? It's true, although there is a lot of information involved in this. Instead of buying a home that is already built, you can buy empty land. This is great because you can then get the exact house that you had always dreamed about. Before you go out and apply for one of these home construction loans, there are some things that you need to know first. They can actually be fairly complicated.
Mortgage Versus Construction Loans
Mortgage loans are actually quite different from construction loans. For one, you need to buy a home that is already built for you to use a mortgage loan. Beyond that, home construction loans also have a different interest and pay schedule. While there are several different kinds of construction loans, most will require that you only pay interest during the building period of your home. After it is completed, you will then need to start paying off your loan in full. Mortgage loans are different because you start paying a large monthly fee, including interest, from the get-go.
Different Types of Home Construction Loans
There are actually several different types of these loans. As mentioned above, you could get a construction loan for your home that you need to pay back in full when you're done with construction. Unfortunately, most regular people can't afford to pay back a loan like this, especially when it totals $100,000 or more.
Instead, there are home construction loans that don't have to work out this way. These are called construction-to-permanent loans. These differ because the construction loan turned into a mortgage loan once the house is completed. In the end, this will save you a lot of money in monthly payments and interest. Be sure to talk to your lender to make sure that they offer this kind of loan.
Finding a Good Lender
While almost all local banks offer mortgage loans, that isn't the case when it comes to home construction loans. If they do, they often don't have enough choices or experience in the matter. Instead, you should try to get one of these loans from a national bank. You will have a much better chance of getting the best options this way.
You should also make sure that the lending officer you work with actually knows their stuff. Home construction loans can be very complicated. You need to work with a lending officer that has experience with these kinds of loans. Otherwise, you may not get what you actually need.
Get New Construction Loans News
Affordable housing: It’s not just for government anymore, roundtable report says
Toronto could see 7,700 new affordable homes and 13,000 new jobs created by the private sector if the city, province and feds adopt new policies.
Read more...Rental, sweet rental: Shift toward apartment living spurs new construction
Growing demand for rental apartments in South Florida is spurring major developers to oblige with new construction projects.
Read more...Spanish banks caught in a turf war
Spain's government continues to remain reluctant to accept EU bailout funds, even though Spanish banks are drowning in bad loans. [caption id="attachment_57172"
Read more...Kindergarten student loans
More parents are turning to loans to finance their children's private school educations. But is the pre-college debt worth the risk?
Read more...Britons get gloomier - long, hard revival to come
LONDON (Reuters) - Britons turned gloomier last month as a slump in construction pointed to an even deeper recession and producers ramped up prices, highlighting the long and difficult road back to economic health. Related Stories China acts to boost loans, bolster flagging economy Gala says to sell casinos to Rank for 205 million pounds Greek exit not fatal for euro zone - ECB's Honohan EBRD ...
Read more...