There are many types of home loans on the market, and one that’s often perfect for those in the building or selling fields is a construction loan. This is a loan managed through a program called Fix It Up, which allows renovation lending for amounts up to $203,000.
At Community Lending Group, we can help you find the perfect construction loan option. Let’s learn about a few of the additional benefits these loans can bring.
In the majority of cases, construction loans are interest-only during the actual construction process. In some even more beneficial cases, some construction loans don’t even require that the interest begin being paid off until construction has finished.
At the time of completed construction, repayment of the principal loan starts up. There can sometimes be two loans associated with a construction loan – one for the construction, and one for the interest during the construction period.
Many loan types can come with either fixed or variable rates, but construction rates will almost always be fixed and standardized. For builders and sellers, knowing these rates will stay the same can be a major benefit financially.
Construction loans don’t typically have any surprise fees associated with them, such as origination fees, points or junk fees. In many cases, additional benefits will be offered to people with a credit score over a certain threshold, sometimes as low as 600.
Construction loans are like putting the housing market in the palm of your hand. You’re fully in control of all renovations from the ground up, with the ability to make changes to the process on the fly as long as they fit within your budget. And as we mentioned, you don’t even have to start worrying about the major financial elements until after your detailed construction processes are finished.
Want to learn more about construction loans, or any of our other mortgage services? Speak to the brokers at Community Lending Group today.