Finalize Construction with Ease
New construction loans are short-term loans that enable the construction of a project or a house to completion. When the construction is completed, the permanent loan, also called end financing, will be used to pay off the interim new construction loan. A construction loan has a short term, usually a duration of 6 months to a year.
There are different types of new construction loans depending on the specific purpose and the person who takes out the loan. Construction-to-Permanent loans are often given to the general contractors who are building the home for the client. Construction Only loans may also be available to individuals who already own a piece of land that they want to build on, if they can provide evidence that they either have their own general contractor already, or can prove they have expertise and sufficient knowledge to act as a general contractor.
If you are debating between getting a construction loan, or a home-equity line of credit (HELOC), or some other privatized loan, there are some benefits of a construction loan.
Pay Interest Only During Construction
Transition to a Permanent Loan
Freedom to Choose Your Architect & Contractor
Lenders take a deeper look into your building plans when you apply for a construction loan, so this can allow you to gain additional scrutiny making sure all plans are in order, which may help to get the job done according to schedule and within your budget.
Our fast and simple loan process offers buyers a low wholesale rate, plus fewer closing costs paid out-of-pocket.