Construction Mortgage
Building your future, one brick at a time.
Build your dream home with ease, using a construction loan tailored to your needs. With our short-term financing options and flexible payment plans, we’ll help you make your vision a reality.
Let us be your partner in creating the home of your dreams.
A construction loan is a type of loan used to finance the building of a new home or other real estate project. This type of loan is different from a traditional mortgage because it is typically short-term and is designed to cover the costs associated with the construction process.
During the construction period, the borrower typically makes interest-only payments on the loan based on the amount of money that has been drawn down. As the project progresses, the lender will disburse funds to the borrower as needed to cover the costs of construction.
Once the construction is complete, the borrower will typically either refinance the loan into a traditional mortgage or sell the property to pay off the construction loan.
Construction loans typically have higher interest rates than traditional mortgages due to the increased risk involved in financing a construction project.
To obtain a construction loan, you will typically need to provide the following:
Detailed plans
and specifications for the construction project, including architectural drawings, engineering plans, and a construction timeline.
A detailed budget
that outlines the estimated costs for each phase of the project, including labor, materials, permits, and other expenses.
A down payment
typically ranging from 20% to 25% of the total project cost.
Proof of income and assets
including tax returns, bank statements, and credit reports.
A good credit score
and a low debt-to-income ratio.
A builder or contractor
who is licensed and experienced in construction projects.
A title search
and title insurance to ensure that the property is free of liens and other legal issues.
An appraisal of the property
to determine its value and ensure that it is sufficient to secure the loan.