Land and Construction Loans
Building a new home is divided into different stages. The complete procedure needs time as well as money. Various housing finance are available. But you will not need the complete amount of the loan all at a time. So, if you are starting from scratch with the construction of your dream home then land and construction loans is what you need.
Taking out a loan all at a time means you will be charged with interest on the complete amount right from the start till repayment. To avoid this you can apply for land and construction and get the money when needed. With this loan you can break up the approved amount and obtain it during the different construction phase. Once a phase is done, you can draw the next portion of the loan money.
Interest will be calculated only on the amount that has been withdrawn and used. Not every lender offers the same land value. Therefore, make sure that you check with the lenders how much they will lend. Comparing the rates and value offered will help you take better decisions. Land and construction loan can be obtained from different lenders. The complete cost of this loan will be based on the value of the land along with the cost of building materials used.
Once construction is complete, you may get your property revalued and borrow against the value of the property again. This loan has been specially designed to ease the financial burden faced during the construction phase. During the construction process, the repayments are interest only, which means lower repayments.
Apply for land and construction loans with us at Installment Loans and you will get to save time and money as you will not have to apply for more cash again and again as you run out of funds during the construction process of your dream home.