Construction Loans For Builders Or Home Borrowers
A Selection Of Programs & Benefits Available To You
A construction loan is different from a permanent home loan because it is a short-term loan where money is borrowed specifically to pay for the cost of constructing a new home.
Most borrowers prefer the Construction-to-Permanent Loan, which, when the house if finish being built, automatically converts from a construction loan to a permanent, FHA, VA or Conventional 30 year loan.
When you secure your construction-to-permanent home loan, you can also lock in your long term interest rate at the very beginning. This offers many benefits to you including; if the rates are low when you start but go up during the construction process, you get the lower rate.
If you’re a U.S. Military Veteran you can take advantage of the VA Home Construction Loan Program. This program helps veterans obtain a no-down payment loan at a very competitive interest rate.
Priority Mortgage Funding also gives you the option of what’s called a “one time close”. This mean the close occurs when the construction is completed.There are many benefits to One Time Construction Loan including:
- Save double on the closing costs
- Borrowers cannot be come un-qualified by loosing a job or getting a bad credit rating during the construction of the home.
- Take advantage of interest rates when they’re low.
- Construction loan rolls easily into a FHA, VA or Conventional 30 year home loan
- You may also finance the land acquisition as part of the process
- VA loan requires 0 Down Payment.
- FHA Loan requires only a 3.5% down payment
- Conventional loan requires only 5% down payment.