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A short-term loan with a fixed or floating interest rate secured
by residential real estate for the purpose of constructing a home.
This loan may be for individuals or builders.
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One time close with a modification
will save borrower money. |
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Borrower pays interest only
on funds borrowed during construction. |
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Choice of rates
and terms. |
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No limit on number
of construction loan draws. |
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Low closing costs. |
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Contractors can start construction
in just a few days after loan is approved. |
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No application fee. |
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Interest paid during construction
is tax deductible. |
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Total construction cost review. |
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Borrower can control the
construction disbursement for materials purchased and
work performed. |
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No charge for construction
draw title updates. |
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Borrower has the ability
to lock their permanent interest rate 60 days prior to
completion of construction without any additional charge. |
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No escrows for taxes
and insurance on variable rate permanent loans. |
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| Additional Specifications &
Fees |
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| Other Fees & Charges |
- Term of the loan is determined by the size of the
project or the requirements of the take-out lender.
- A Construction Loan Fee is charged based on the
size of the loan and the length of the term.
- There is a charge for the appraisal based on size
and location of the property.
- Closing costs vary based on size of loan as well
as recording fees.
- Charge for construction draw inspections are based
on location of property.
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Equal Housing Lender.
