How Do Construction Loans Work?
A construction loan can be used to purchase a lot and build, purchase an existing home that needs to be remodeled or torn down, or refinance an existing mortgage for home renovation. The most common types of construction loans are construction only loans, construction to permanent loans, or one time close construction loans. Regardless of the type of construction loan that is right for you, be sure not to consult with your loan officer if you plan to do any work to your property prior to starting construction.
Use the form below or call us at 855-400-0262. Tell us who you are and briefly explain your needs and we’ll get back to you asap!
Program Details:
- Construction Only Loans – Typically a fixed rate over 12 months that allows for the construction or renovation of a property. These loans are typically refinanced after the construction phase to permanent financing resulting in two closings.
- Construction to Permanent Loans – Typically a fixed rate over 12 months during construction which modifies to permanent financing once construction is complete. The permanent financing terms are usually locked in with an extended lock or within 60 days of construction being complete. There is one closing for this transaction at the time of the construction loan closing and a signing at modification but only one set of closing costs are charged.
- One Time Close Construction loans – Typically a fixed rate over 12 months during construction that automatically converts to the permanent financing after the initial 12 month construction phase. The rate during construction is usually the same throughout the loan term and there is only one closing at the start of construction.
Construction Loan Quick Quote Form
Tell us who you are and briefly explain your needs and we’ll get back to you asap!