Construction Loans

Construction lending consists of providing financing for the construction of a new residential structure on a particular property. And whether you already own the land or not, a construction loan may still be right for you!  

 

A one-closing construction loan combines construction financing into the same loan as permanent mortgage financing. There is a single closing transaction before construction begins, where a single set of fees and closing costs are collected from the borrower. During construction, borrowers pay a monthly interest payment based on the amount of construction funds used to date along with an escrow payment for real estate taxes and insurance, if required.

 

Once construction is complete, the loan will convert to the permanent phase, and the borrower will begin making a traditional principal and interest payment to include an escrow payment for taxes and insurance, if required.

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Call us today to discuss getting your financing lined up to build that dream home!