Building your dream home is exciting! However, there are many unknowns, some of which are beyond your control. How long will construction take? Will the builder complete everything according to the plan? What will the final cost be? Securing financing for your construction project is a critical step in the process — and it’s something you can control.
Getting financing for new home construction is slightly different than getting a mortgage for an existing home. Here’s what you need to know:
With a simple construction loan, when the principal balance comes due at the end of the construction phase, a new mortgage pays off the existing construction loan. If you have construction-to-permanent financing in place, the construction loan converts to permanent financing after the construction period. You enjoy the convenience of one loan, one application and one closing date. However, if you are seeking a different arrangement for the permanent phase, you have the flexibility to choose a mortgage program that better fits your long-term needs. At this time you may wish to lock in a low, fixed rate for your permanent financing.
At Seaside, our Residential Lending Advisors can help you explore financing options carefully so you can begin the construction phase with confidence.
For more information, contact your Client Advisor or Jane Ashley, Director of Residential Lending, at 407.567.2283 or via email at firstname.lastname@example.org.