About Construction Loans
A construction loan supplies funding for a residential building project, allowing homeowners to achieve their house goals. These short-term loans typically cover the costs of land, contractor labor, building materials, and permits.
Types of construction loans:
01
Construction-to-Permanent
Construction-to-permanent loans convert to a permanent mortgage once the building is complete.
02
Construction-Only
Construction-only loans must be paid off when the building is complete. They require the borrower to go through and pay for two loan closings—once for the construction loan and once for the permanent mortgage.
03
Owner-Builder
Owner-builder loans are for when the borrower acts in the capacity of the home builder. Lenders typically allow this option only if the borrower is licensed.
Unlike construction financing, which is sometimes confused, renovation or home improvement loans are the best option for homeowners who want to fund renovations, repairs, remodeling, or energy improvements.
Requirements
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Minimum credit score of 620
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Down payment of at least 20%
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Lender-approved builder and construction plan
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A debt-to-to-income ratio of about 45% or less
Secure Your Loan With Everest Lending
Ready to buy or refinance? Contact Everest Lending to determine if a construction loan is the right option for you. With over 25 years of home loan experience, our team guides you through your mortgage options and the application process, helping you secure funding for your new home.
Service Areas
Trusted Mortgage Solutions Near You
Everest Lending proudly serves clients across Pennsylvania with a full range of mortgage and lending solutions. Whether you’re purchasing a new home, refinancing, or securing funding for a property investment, our trusted team is here to guide you every step of the way. And since we’re local, we can even attend closings in person to ensure everything goes smoothly.