Build your perfect home with Mann Mortgage’s customized Construction Loans!
Construction loans make building Your Dream Home surprisingly easy and affordable.
What are construction home loans?
At our Scottsdale North Office, we specialize in providing tailored financial solutions to meet the unique needs of our clients in these thriving communities. This guide will offer you a comprehensive overview of construction loans, outlining the key aspects you need to know to make informed decisions and achieve your construction goals.
Not sure where to get started? That's okay too, we're happy to meet you where you're at and direct you to the right place or person.
The MannMade construction loan process.
- Construction loans are short-term financial products designed to fund the construction or renovation of a property. They provide the necessary capital to cover construction costs, including labor, materials, permits, and other expenses.
There are different types of construction loans, including construction-to-permanent loans, stand-alone construction loans, and renovation loans. Each type has its own set of terms and conditions, so it’s essential to choose the one that aligns with your project’s requirements.
Obtaining a construction loan involves a rigorous approval process. Lenders will assess your creditworthiness, project plans, budget, and timeline. They may also require a down payment or collateral to secure the loan.
Construction loans are typically disbursed in installments, or “draws,” as the project progresses. Your lender will inspect the construction site to ensure it meets the specified milestones before releasing funds for the next phase.
Once the construction is complete, you’ll need to transition to permanent financing, such as a mortgage. This involves a new loan application and approval process, during which the construction loan is paid off and replaced with a long-term mortgage.
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Construction loans are short-term loans that fund the construction phase of a project, while traditional mortgages are long-term loans used to purchase or refinance an existing property.
Interest rates on construction loans can be variable or fixed, and they typically have higher rates than traditional mortgages due to the short-term nature of the loan.
Lenders evaluate factors such as credit history, project feasibility, down payment, and the borrower’s ability to repay the loan when considering construction loan approval.
If your construction project exceeds the budget, you may need to secure additional financing or cover the extra costs yourself. It’s crucial to plan for contingencies in your budget.
Construction loans are typically intended for professional construction projects. Using them for DIY projects may not be advisable, as lenders require proper documentation and oversight.
“I was always in the loop on my loan process. I loved the one-time close construction loan. It saved me thousands to be able to lock in the interest rate.”
Josue Gabriel Lopez
Let's get you home.
Borrow up to 97% of a home’s value with as little as 5% down. Our local loan experts will help guide you.
