Build Your Dream Home With A Hard Money Construction Loan!
Category : Construction Loans , Hard Money Loans , Residential Loans
Building your dream home is a very appealing and exciting event. If you are planning to build your new dream home but are not sure how to finance it, a hard money construction loan can provide you funds to construct your new home. Hard money construction loans are specially designed to fund new home construction or for remodeling an existing home. The home construction loans are also called a story loans that means the lender has to know the construction plan before they give you any money at all.
A construction loan comes with certain features that are distinct from the other regular loans. One of many advantages of the construction loan is that the borrower pays only interest till the construction is fully completed. Principal amount can be repaid when the home is finally constructed. Moreover, you can even turn the loan into a mortgage loan later in case you are unable to pay off the loan.
There are some differences between a construction loan and a typical mortgage loan. So if you are considering for a construction loan, here are few things you should know before you get the loan:
It’s A Short-Term Loan: A construction loan is short-term loan program. Generally, the loan term is 6 months to a year, and the money is used to finance the building of the house.
It’s Due All At Once: With normal mortgages, you pay off the loan in the form of monthly payments. But with construction loans, the entire balance is typically due at the end of the loan term once the house is built. That means you need to either have a cash reserve that you can use to pay off the loan when it’s time, or you have to get some other type of financing or loan to cover the balance.
It’s Not Give The Money In Lump Sum: You won’t receive the funds in one lump sum. Typically, the lenders give you a certain amount of money periodically based on the percentage of work that’s been completed on the house.
Conclusion:
If you want to build or remodel a home, a construction loan is almost a necessity unless you have significant savings. You are advised to get the pre-approved letter with the help of an expert finance broker before commencing your building project.
Magna Capital Group, Inc. provides hassle-free hard money construction loans that allow you to receive the funding you need to build the home of your dreams. For more specifics about construction loans, Call Us on (310) 734 4044 or send Email at info@magnaloans.com.