I was thinking yesterday about what costs might be involved when undertaking any form of home construction. That's when i heard about home construction loans.
A home construction loan can be offered when the lender knows the full story behind the construction of the house and it requires interest-only payments while the construction is taking place and then the original investment costs are payed upon completion. Once a house is complete it should receive its certificate of occupancy.
Find out how much money the lender is willing to give you and bear in mind that the land you own ready for the construction of the home could be used as equity on the construction loan.
According to Kent Pinkerton, who wrote an article on home construction loans, you have an option whereby you can go for a "construction-to-permanent financing program" where the loan is then converted into a mortgage loan once the certificate has been issued. This might help make your repayments easier, since there won't be 2 loans.
Make sure you do make some research and compare rates from different lenders and always read the small print so you know you're not going to get caught out. Remember that the lenders are trying to profit too.
1 comment:
When you are a realtor,you must act like you know everything if you are intending to buy a lot or house. You must firstly checked all of the building facilities as well and its material used. Checking also the contractors background is important.
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