Builder Construction Loans: Build that Dream House

2007-03-08 10:33:40

( Financial )



HOUSE LOANS

So you have bought that property you have always wanted and now its time to build a house for you and your family. The problem is that the down payment required for the mortgage has drained your savings. In this case, having your own property while unable to renovate or build your dream house can be frustrating.

Builder construction loans should be integrated with mortgage as both loans are directly related to one another. Builder construction loans provide you with the funds needed for the actual construction of a house or any other residential structure like apartments.

IN-HOUSE OR HIRED CONTRACTOR

Depending on the type of builder construction loans, you can either be the contractor or hire a separate company. Some lending companies will have different construction loan programs, depending on whether you will be the contractor or someone else. If you are personally going to be the contractor, you will be given what is called an owner builder construction loans.

Still there are other companies that do not care for the type of contractor you will use – they will issue builder construction loans regardless of how you plan to build your house. As long as you qualify for the loan, you have sole discretion as to how the house construction will proceed.

Builder construction loans will provide funds for any expenses related to the construction of a house. From the building of the framework to the finishing, you can use your builder construction loans to finance any aspect of the construction work.

The arrangement of most builder construction loans is similar to an equity line of credit. Depending on your credit standing, your lender will determine the maximum loan-able amount that will be available for you. From this amount, you can draw the funds you need as the construction progresses. You can opt to max out the entire amount or use only what you need.


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