A construction loan is a short-term loan that helps finance the cost of building a new home. Funds are disbursed throughout the construction process as work is completed.
A construction loan is designed to finance the building of a new home, while a traditional mortgage is used to purchase or refinance a home that is already built. Construction loans are temporary and are typically refinanced into a long-term mortgage once construction is complete.
Yes. Getting pre-qualified helps you understand your budget and shows builders and real estate agents that you’re ready to move forward with your homebuilding plans.
A construction loan can help cover the cost of purchasing a lot and building your new home. It generally does not cover cost overruns, changes that exceed the approved budget, or personal property such as furniture and décor.
Yes. If you already own the lot where you plan to build, the equity in the property may be used toward your down payment requirements.
As construction is nearing completion, we’ll work with you to refinance your construction loan into a long-term mortgage that fits your needs.
Yes. During construction, you’ll make monthly interest-only payments based on the amount of loan funds that have been disbursed.
