Blog
Part 1: Can’t Find Your Dream Home? Build It with a Construction Loan.
Feb 10
6:40
AM
Category | Products
A note from, Erin the Expert: "Welcome to my 4-part series on my Construction Loan Platform. In today's blog (Part 1), I discuss what a .jpg)
construction loan is and the projects that are eligible for this type of loan. Make sure you stayed tuned for the coming weeks as I'll be discussing the components of a Construction Loan and why choosing an experienced lender is critical."
construction loan is and the projects that are eligible for this type of loan. Make sure you stayed tuned for the coming weeks as I'll be discussing the components of a Construction Loan and why choosing an experienced lender is critical."Can’t Find Your Dream Home? Build It with a Construction Loan.
Trying to find the perfect home that checks all the boxes on your list of “needs” and “wants” can be both frustrating and discouraging. Home buyers often end up compromising because their dream home just isn’t on the market. Most don’t realize that there’s an alternative to the standard mortgage that allows them to build their own dream home.
What is a Construction Loan?
The Greenway Mortgage Construction Loan Program allows you to the finance the building of a single-family home, whether the home will be your primary residence or second home. The purchase of a property and the cost to build are consolidated into a single closing, which means you only pay closing costs and fees one time.
During the construction period, you save a significant amount of money by making interest-only payments based on total funds drawn until construction is finished. The draw process is simple and flexible with no set schedule. Once the home is complete and the certificate of occupancy (CO) is issued, the loan is modified into a standard loan term at present market rates. At this point, there is no loan requalification, and you pay no additional closing costs.
What Projects are Eligible for a Construction Loan?
A construction loan is typically used when you purchase either a vacant lot and build from scratch, or a “teardown” home to demolish and replace with a new home.
However, our construction loan program can also be used to build or replace a home on a property you already own, or to renovate an existing home when the necessary repairs go beyond what a standard renovation loan allows.
Stalled real estate projects and modular home construction can be eligible for construction loans as well.
Choosing an Experienced Lender is Critical
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.
Stay tuned for next week's blog (Part 2) on the 4 Components of a Construction Loan. You can learn more about the One-Time Construction Loan by clicking here.
Don't forget to download Erin The Expert's Mobile Mortgage App where you'll have instant access to Erin, along with helpful tools. Check it out here.
