Construction Loan
What is a Construction Loan?
A construction loan is a short-term loan used to finance the building or renovation of a home, with funds disbursed in installments as construction progresses, and typically converted to a permanent mortgage once the project is complete. Construction loans often have higher interest rates than traditional mortgages, as they are considered riskier due to the lack of an existing property as collateral.
Requirements
- Property/ Land Address
- Property Value/ Loan Amount
- PFS (Personal Financial Statement)
- Credit
- Schedule of Real Estate
- Permits/ Plans
- Resume
- Liquidity
- Budget Breakdown
Benefits
Some of the pros of doing a construction loan would be that you may use it to build a new home (vs. buying an existing home). You may also choose your builder, selections, options, and other upgrades or extras that you may not find in an existing home.
Questions? We have answers. Call Fred 714-583-6188
If you are interested in finding out if a Jumbo Loan is right for you, please contact us below, or fill out our pre-approval form. One of our experienced loan officers will be in touch.