New Construction Loans
If you can’t find the right home to buy, you might be thinking about how much it will cost to build a new house or renovate the one you currently call home. The process of borrowing the money to pay for this project is different from getting a mortgage to move into an existing property.
What is a construction loan?
It is a loan option where the borrower does not have to submit any tax returns or financial statements other than their bank statements to purchase a new home or to cashout refinance an existing home that they already own where the calculation of their income will be based on their documented bank deposits from their most recent 12 or 24 bank account statements.
A home construction loan is a short-term, higher-interest loan that provides the funds required to build a residential property.
Construction loans typically are 12-24 months in duration. During this time, the property must be built and a certificate of occupancy should be issued. After the construction has been finalized, the borrowers can refinance with a traditional long term loan.
