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 Safford Office, we understand that securing financing for construction can be a daunting task, which is why we’re committed to providing you with a comprehensive guide to Construction Loans. We’ll demystify the process, answer your questions, and help you make informed decisions tailored to your specific needs. Read on to gain insights into the world of Construction Loans.
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.
- A Construction Loan is a short-term loan designed to fund the construction or renovation of a property. It covers the costs of labor, materials, permits, and other expenses associated with the project.
Construction Loans typically have a two-phase structure. The first phase involves the construction phase, during which you borrow funds as needed to pay for construction expenses. The second phase is the permanent financing, which replaces the Construction Loan once the project is completed.
Interest rates on Construction Loans are generally higher than those on traditional mortgages. These loans often have adjustable rates and shorter terms, usually 6-18 months for the construction phase.
Lenders typically require a substantial down payment, often around 20-25% of the project’s total cost. The LTV ratio is calculated based on the appraised value of the property once it’s completed.
Obtaining a Construction Loan involves a rigorous approval process. Lenders assess your creditworthiness, project plans, budget, and timelines. Regular inspections and documentation of progress are usually required.
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Yes, you may use the equity in your existing property as collateral for a Construction Loan, provided you meet the lender’s criteria.
If the project exceeds the initial budget, you may need to secure additional financing or use your own funds to cover the extra costs.
Construction Loan interest rates are often variable, but some lenders offer fixed-rate options for added stability.
Once construction is complete, you’ll need to apply for a permanent mortgage to pay off the Construction Loan. Our Safford Office can guide you through this transition.
Our Safford Office offers personalized guidance and tailored financial solutions to meet your construction project’s unique needs. We ensure a smooth lending process and provide ongoing support throughout your project’s lifecycle.
“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.
