Residential Construction Loans

Residential Construction Loans

Residential construction loans for residential investment properties or owner occupied residential property is available with great terms. Some of our flexible qualifications include:

  • Quick and streamlined loan process
  • lower documentation requirements
  • flexible borrower income qualification
  • asset based lending
  • low fees and low construction loan rates

residential construction loans

Residential construction loans provide financing to purchase raw land and to build a residential property on it. Once built the residential construction loan either converts to a permanent loan (one time close loan) or has to be refinanced into a permanent loan.

How Do Construction Loans Work

Construction loans are short term loans (usually 12 months or less) for the period of construction only. They are usually interest only loans which means interest only payments are required during the course of construction.

The residential construction loan works essentially like a line of credit. On closing the funds will be put into an “escrow account”. As work is completed the contractor will submit draw requests. The lender will send out an inspector to make sure the work has been done and it has been done per requirements. The money is released. Most Lenders will work out a draw schedule prior to closing the loan.

Owner-builder Construction Loans

We have owner builder construction loans available. Most lenders require a licensed general contractor to actually do the building work on the project, we can work with owner builders who have prior experience in construction projects. We also finance spec homes.

Custom Jumbo Construction Loans

Need financing for a custom or estate home for new construction or renovation? We have loan options available. With flexible requirements that can be customized to specific financing projects, we are able to provide financing for a variety of projects.

For more information on residential construction loans or other loans such as hard money loans please contact us.

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Other Construction Loans: