Posted on: 06th Jun, 2009 11:07 am
What is the difference between a conventional fixed mortgage and a construction loan mortgage? We are discussing flipping a house and don't really know the best loan?
Hello Sunil87020,
As far as i know, This both of the loan types are most common types of the mortgage loan.
Conventional Fixed Mortgage
is not guarantied by the states government. Its very hard to approve by lender & its having large amount of the down payment. However it will use guidelines to determine that whether the property is suitable for brought under the Mortgage terms & conditions are mostly lenient.
Construction Loan Mortgage
This is also most common type of loan & its also short term loan. It will allows to property owner or owner builder to borrow the $ needs for construct a new Home. That means they providing loan to build a new house, Then once the construction is completed & total amount of loan is withdraw the loan taker must have to make payments for the dues.
Thank you so much,
Daniel Corral. :D
As far as i know, This both of the loan types are most common types of the mortgage loan.
Conventional Fixed Mortgage
is not guarantied by the states government. Its very hard to approve by lender & its having large amount of the down payment. However it will use guidelines to determine that whether the property is suitable for brought under the Mortgage terms & conditions are mostly lenient.
Construction Loan Mortgage
This is also most common type of loan & its also short term loan. It will allows to property owner or owner builder to borrow the $ needs for construct a new Home. That means they providing loan to build a new house, Then once the construction is completed & total amount of loan is withdraw the loan taker must have to make payments for the dues.
Thank you so much,
Daniel Corral. :D
Thanks Danielcorral13.