A construction is a short-term loan used to finance the building of a home or real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. After construction of the home is complete, the borrower can either refinance the construction loan into a permanent mortgage or utilize our “One-Time-Close” product that will automatically convert to a fixed rate mortgage. Some construction loans may require the balance to be paid off entirely by the time the project is complete. Construction loans can cover the cost of the land, contractor labor, building materials, and permits.
Construction Loans have a few requirements that differ from Conventional, FHA, and VA loans.
There are other loan requirements depending on circumstance, please reach out to a loan officer for specific loan questions.