Posted on: 04th Oct, 2005 11:37 am
HOW CAN I GET A LOAN TO HAVE A HOUSE BUILT AND PAY OFF MY BILLS
Hi SANDY,
It's nice to know that you are planning for own dream home. My best wishes are always with you.
If you want to build your own home, then you can look out for Construction loans. Such loans are short-term, interest-only loans and may be replaced by a regular mortgage once the home is built.
There are two types -
In most of the all-in-one programs the construction loan is converted to an adjustable-rate mortgage; some plans offer 15 or 30 year fixed-rate mortgages. But consumers have to look for all the options available from the thousands of conventional mortgage loans available rather than being restricted to the mortgages offered by construction lenders.
The interest rate for both kinds of construction loans is typically fixed for the life of the loan - usually 12 months or less, although it may be 18 months in some cases. The rate for people with good credit is usually the prime rate plus zero, one or two percentage points. Along with the monthly payments towards principal and interest, you also have to pay fees for inspection (so the lender can make sure the project is proceeding according to schedule) as well as title insurance.
So, you can move ahead with your home planning with a construction loan. Only precaution to be taken is to make plans and proceed accordingly.
Hope I could provide you with the required information.
Wish you good luck.
Blue
It's nice to know that you are planning for own dream home. My best wishes are always with you.
If you want to build your own home, then you can look out for Construction loans. Such loans are short-term, interest-only loans and may be replaced by a regular mortgage once the home is built.
There are two types -
- The all-in-one loan - this is also called the rollover or the construction-to-permanent loan. It automatically gets converted to a standard mortgage after construction is completed.
- The construction-only loan - this loan becomes due at the end of the construction and must be paid off or replaced by a conventional mortgage.
In most of the all-in-one programs the construction loan is converted to an adjustable-rate mortgage; some plans offer 15 or 30 year fixed-rate mortgages. But consumers have to look for all the options available from the thousands of conventional mortgage loans available rather than being restricted to the mortgages offered by construction lenders.
The interest rate for both kinds of construction loans is typically fixed for the life of the loan - usually 12 months or less, although it may be 18 months in some cases. The rate for people with good credit is usually the prime rate plus zero, one or two percentage points. Along with the monthly payments towards principal and interest, you also have to pay fees for inspection (so the lender can make sure the project is proceeding according to schedule) as well as title insurance.
So, you can move ahead with your home planning with a construction loan. Only precaution to be taken is to make plans and proceed accordingly.
Hope I could provide you with the required information.
Wish you good luck.
Blue
I'm in need of a 2nd construction loan to complete the remaining 10%. Does anyone know who can help??
Regards,
Chacho6868
Regards,
Chacho6868
Hi
Can you explain the situation? What happened to your first construction loan? Has it been paid off? What amount of money do you want to borrow to complete the 10% remaining work? What is your credit score? Have you been current on your payments in the last 12 months?
Can you explain the situation? What happened to your first construction loan? Has it been paid off? What amount of money do you want to borrow to complete the 10% remaining work? What is your credit score? Have you been current on your payments in the last 12 months?