|
construction loans Ge Finance Taxes Personal Finance - advertisement - How construction loans work By Bankrate.com Q. Can you explain how construction loans work? Why is it so difficult to find construction loan information on the Web? Construction loans are story loans. That means that the lender has to know the story behind the planned construction before they're willing to loan you money. Because it's a story loan construction loans, it's not going to be standardized like mortgage loans underwritten to Freddie Mac or Fannie Mae guidelines. That said construction loans, there are some common features to a construction loan. Construction loans typically require interest-only payments during construction and becom construction loans.
construction loans E due upon completion. Completion for homeowners means that the house has its certificate of occupancy. Construction loans are usually variable-rate loans priced at a spread to the prime rate or some other short-term interest rate. You construction loans, the contractor and the lender establish a draw schedule based on stages of construction construction loans, and interest is charged on the amount of money disbursed to date. Another variable in construction loans is how much of the project cost the lender is willing to lend. If you already own the land construction loans, then that can be considered as equity on the construction loan. Many homeowners use construction-to-permanent financing programs where the construction loan is converted to a mortgage loan after the certificate of occupancy is issued. The advantage is that you only have to have one application and one closing. Depending on your view on interest rate trends construction loans, you could also purchase a rate-lock agreement valid through the expected completion of the construction. Just make sure you allow for the inevitable construction delays. A construction loan construction loans, unlike a mortgage construction loans, isn't meant to be around for a long time. If you're taking out a $200 construction loans, 000 construction loan for six months and you pay an extra 0.5 percent on the loan construction loans, it costs you an additional $250. (Assumes an average $100 construction loans, 000 loan balance over a six-m.
construction loans Ruction loan is converted to a mortgage loan after the certificate of occupancy is issued. The advantage is that you only have to have one application and one closing. Depending on your view on interest rate trends construction loans, you could also purchase a rate-lock agreement valid through the expected completion of the construction. Just make sure you allow for the inevitable construction delays. A construction loan construction loans, unlike a mortgage construction loans, isn't meant to be around for a long time. If you're taking out a $200 construction loans, 000 construction loan for six months and you pay an extra 0.5 percent on the loan construction loans, it costs you an additional $250. (Assumes an average $100 construction loans, 000 loan balance over a six-mo.
construction loans 
construction loans | | | | | |
construction loans
|
