Construction Loans

  • Short-term, high-interest financing options designed to fund the building or renovation of a home.

  • Funds are available in stages, corresponding to project milestones, ensuring that money is available as needed for construction phases.

  • Borrowers typically pay interest only on the disbursed amounts during construction.

  • Once the project is complete, the loan may convert to long term or may need to be refinanced and converted to long term financing.

  • Requires detailed plans, budgets, and timelines, for approval.

  • Ideal for custom home builds or major renovations, offering flexibility and control over the construction process while managing financial risk.

Construction Options:

  1. FHA Construction Loans: These are government-backed loans that allow for low down payments and are designed for borrowers with lower credit scores. They are suitable for building a new home or renovating an existing one.

  2. VA Construction Loans: Available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans offer benefits like no down payment and competitive interest rates.

  3. Conventional Construction Loans: These are not backed by the government and typically require higher credit scores and down payments. They offer flexibility in terms of loan amounts and property types.

  4. USDA Construction Loans: Designed for rural property construction, these loans offer benefits like no down payment and are available to eligible rural and suburban homebuyers.

Each loan type has specific eligibility requirements and benefits.